Many organizations already recognized that the role of the office workplace was changing before COVID-19.

Prior to COVID-19, many organizations conducted space utilization and observations studies to identify how/where space is being used. In work conducted for Avison Young’s clients, we’ve found that the pre-pandemic workspace was utilized on average 50% of the time. This means that organizations experienced an overall 50% office vacancy – which means valuable resources (i.e. funds spent on vacant office space) could be better redeployed to help meet core business requirements. We’re currently seeing 5-10% space utilization during the pandemic, largely influenced by the health and wellness considerations of employees who remain challenged traveling to the office. Public transit and urban density issues further exacerbate the challenges.

As a result, many believed that the traditional office was outdated, giving rise to agile and innovative workplace designs. Through the 1980's to mid-2015, workplace design largely centered around a cellular approach to allow each worker to have their own dedicated seat, otherwise known as the “cube farm.” Spaces were assigned based on seniority, contributing to the hierarchical and fixed nature of the 9 to 5 workplace. With changes in the way that people work, companies discovered that space was underutilized and inefficient, leading to new fluid and agile designs developed to better engage employees and drive organization results.

Around the globe, leading organizations initiated unassigned seating so that workers would use the workspace according to their schedule for the day. Workplace designs blended both closed/office spaces together with open/collaborative spaces, multiple employee amenities and many different workspace options. Examples of agile workplaces are found across the private and public sector, including McQuarrie Bank, National Australia Bank, Citibank, Royal Bank of Canada, Manulife, Deloitte and the U.S. Government Services Administration to name a few.

As a result, the move toward footprint optimization was already underway. Average spaces per employee moved down from an average 180-200 sf/employee to around the 130-140 sf/employee range. Some organizations even boast achieving less than 90 sf/employee through unassigned seating or “hot desking” models. Through multiple case studies, Avison Young found that organizations could reduce their footprint by anywhere from 30-50% to achieve more strategic spaces that give employees room and optionality to accomplish their work.

COVID-19 is a call to radically shake-up the thinking of workplaces and office building design. The tools at business’ disposal should be enablers of organizational change and a vital instrument in the war for talent. After all, people matter and “business as usual” is a concept quickly aging out. At its core, workplace provides people with a physical place to connect, collaborate and engage with others. Now more than ever, companies who invest in the human experience, and create meaningful spaces built for high-performance workforces with digital skills and experiences, can see a four times increase in profitability.

How workplace trends are accelerating

Companies that invest in the human experience can see a 4X profitability increase. The workplace’s power lies in the vast mix of people, culture and ideas that require proximity to flourish.

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