The unexpected success of remote working during the pandemic has investors and occupiers questioning the future of office spaces. While many employees appreciate the ability to work from home, most organizations believe workers' physical presence is still critical. This hybrid dilemma presents an opportunity for owners and operators to reimagine space for the better. In this post, we explore McKinsey & Company's findings in an article about essentials for real estate owners and operators to be successful in 2023.

Occupiers must make the workplace an exciting and engaging place for employees to lure them from the comfort of their homes. That means designing with purpose and creating a digital experience that allows for easy booking of rooms and workspaces and compliance with health and safety protocols. Additionally, occupiers must move away from traditional "cube farms" and focus on creating intelligent, collaboration-friendly spaces that inspire creativity. Leading occupiers are now providing tenants with the means to design this engaging workspace.

To stay competitive, owners and operators must become solution partners to tenants and expand flexibility in terms of space, leasing models, and operations. To improve the tenant experience, many companies are transitioning to hybrid operations that combine digital solutions with traditional property management services. From energy optimization to predictive staffing and maintenance, they are experimenting with new technologies that can reduce costs and make operations more efficient. These new changes will give businesses a competitive edge and put them ahead of their peers in the coming months.

In addition, owners and operators should come forward with solutions such as sensor technologies and analytics that track occupancy and space usage. They should build or partner with digital companies, like Align and FOLIO, to create tools that address tenant needs for physical space, such as understanding desk and conference-room usage patterns. Doing so can transform the tenant relationship and develop compelling value propositions beyond "four walls."