Traditionally corporate real estate costs represent nine to 12 percent of a total company cost base. But as concepts like work from home and spoke and hub gaining traction as COVID-19 lingers, Joe Brady, CEO Americas for The Instant Group, a workspace innovation firm, sees an opportunity for some firms to bring those costs down to five or six percent.
Brady sees they can do this by relying on spokes where people can come together to fill personal contact voids without commuting to the main office hub, which are in central business districts and will have spaces, such as boardrooms and huddle rooms, dedicated to "engagement and collaboration."
"With this idea of the hub and spoke, if you're reducing expensive real estate in the prime core business districts, the urban cores, and you're moving out to first string suburban, you're going to see some, some cost savings," Brady says.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
