In this series we are exploring three R’s to post coronavirus recovery:
1. recovering revenue
2. reimagining structures
3. rethinking people
We looked at six ways to recover revenue and now we turn our attention to reimagining structures. Structures include physical space, systems and processes, technology, and supply chain. Basically, anything that supports your business in addition to people.
Today we explore physical space. If there is one word to describe our use of physical spaces in the future, it is different.
Yesterday, I was talking with a friend who told me that one of her billion-dollar clients had shared with her that they had surveyed their employees and 50% want to continue working at home. They have plans underway to cut space by 50%. Imagine how much space this must be? Now imagine it happening exponentially across the globe.
With millions or more in cost savings on the line, firms everywhere are exploring similar goals.
In the retail environment, companies now find they are in more of a distribution business than a business where people come into shop. Dramatic reductions in the type of use of retail space were already happening pre-coronavirus. This trend is now on steroids.
With massive outmigration in office and retail, the basic facts of supply and demand dictate, falling commercial real estate rents. Regardless of your industry, now is the time to consider if you need space, how much, and what type. If you have a continue space need, it is the time to consider renegotiate your lease.
If you are in the commercial real estate business, the shifting demands for space are a clear call to look at how you can reposition your buildings for future viability. This will vary dramatically based on location urban vs suburban and current use. But sticking your head in the sand and hoping your life will be the same tomorrow is a super bad idea. Get your team together and consider your long-term strategy.
Take a moment right now to consider how the shifts in how we use space are impacting your business. Write down your initial thoughts. And plan time to consider your long-term course of action.