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.

Mack­ey