LOS ANGELES—This may be the year of uncertainty. According to the 2017 Occupier Survey from CBRE, 55% of respondents listed economic uncertainty as a major challenge in the year ahead. Employee satisfaction and talent retention also top the list of things on employers' minds, with 55% of respondents saying that talent attraction was a top three driver of business and 67% admitted that employee satisfaction is a measure of workplace strategy success.

“There is always some measure of uncertainty but current apprehension hinges on sentiment,” Petra Durnin, director of research and analysis for Southern California at CBRE, tells GlobeSt.com. “Political issues up for debate, such as healthcare, tax cuts, and infrastructure, have large implications for business and commercial real estate. The tentative future of these matters added to the uncertainty at the beginning of the year, but market fundamentals remain strong. However, LA will reach full employment in 2017, which will likely result in slower job growth over the next two years and move us closer to the end of this cycle.”

With sentiment waning and a clear focus on talent and recruitment, many employers are looking at ways to improve workplace strategy in the year ahead. That includes adopting new workplace standards and practices. Notably, 87% of respondents plan to optimize their workspaces this year and 86% plan to adopt new workplace strategies, while 51% anticipate adopting a shared workplace model. “Clients want to keep their real estate strategy flexible while remaining laser focused on attracting and retaining talent,” says Durnin. “They are looking for alternate opportunities in LA, which is still the number one market investors prefer, according to the 2017 CBRE Investor Intention Survey.”

As employers look to improve workspaces to improve recruiting, creative and alternative office spaces are likely to become more popular. “Upcoming lease expirations and new and expanding industries are drivers of demand, and as companies strive for efficiency and wellness, 'creative' and 'office' will become synonymous. Space design elements that are common features in creative office buildings will become essentials for occupiers,” explains Durnin. “Tenants are seeking different ways to remain competitive to attract and retain talent, and an important component of that is space. Having cool space has moved from a novelty to a necessity. Co-working is also maturing and not just a place for freelance workers to office. This platform meets a wide variety of needs for new and established companies looking for alternative solutions to signing long-term leases.”