Despite Vaccines, A Return to Office Is Still Uncertain

The pandemic has changed the way that people use space, and no asset class has been more impacted than office. As we exit the pandemic, tenants are discovering that they have new needs, according to Karen Whitt, president real estate management services for the US at Colliers. Whitt is moderating a discussion on the topic at the GlobeSt. Elite Women of Influence conference in July, where she will dive deep into the trends influencing tenant preferences. At the moment, the biggest influence: the pandemic.

“Over the last year, a lot of tenants discovered they didn’t need their spaces the same ways they thought they did,” says Whitt. “There haven’t been that many watershed moments in the history of office use. What we were used to before the COVID-19 pandemic was more the result of slow evolution rather than dramatic, instant changes. In five years, I think we’re going to look back at this return-to-work situation as one of the few times when office use changed overnight.”

Many owners are hopeful that the vaccine distribution will return things to normal—including office usage, but Whitt says that is far from a sure thing. “We’re talking a lot about vaccines and the light at the end of the pandemic tunnel, but it’s easy to forget that we’re still facing a lot of vague unknowns when it comes to returning to the office,” she says. “I recently heard that only a little more than a quarter of companies have brought back all their employees to the office, so what my teams are seeing probably isn’t the same as what others are. I’m hoping that we can share observations and ideas, and get ahead of the curve so that tenants across the board are comfortable when they get to work.”

Right now, many tenants are trying to understand what they need in the future based on how they have used the space for the last year. “Some tenants left their offices in March 2020 and did little more than check the mail between then and now. They’re wondering what they should keep paying for,” says Whitt. “Others, like a lot of our professionals that don’t have to be on a client site, have shifted to using office spaces for gathering. They may be interested in keeping the same size spaces as before the pandemic, but want to modify them for collaboration and inspiration. Still others are chomping at the bit to bring their staff back to the office and want to do everything they can to keep their staffs safe. The catch is that the same property has to accommodate all these tenants at once.”

Owners should take the time to listen to new and evolving needs and then respond accordingly. Whitt’s recommendation is to be flexible and listen, both to tenants but also to the team on the ground. “Listen to what your professionals are asking for, and listen to the experiences of your peers,” she says. “With the former, you can work towards goals that will have a real impact, and with the latter you can avoid common pitfalls. But don’t just do what you think might be good. Otherwise, you’ll create programs that nobody will take advantage of.”

From her perspective, the change is exciting. She is looking for ways to evolve and adapt, and she see opportunity. “As the leader of a property management organization, I’m really excited to be at the forefront of those changes,” she says. “We should all be open to new technology to help this along, and the demands for transparency about ESG efforts that we’re beginning to see slot right in with the concern for health.”

To hear more about Whitt’s thoughts on tenant preferences, attend her discussion at the GlobeSt. Elite Women of Influence event on July 22 and 23.