A Hybrid Model of Work has Arrived
As companies focus on a return to the office it appears a hybrid work model is here to stay…for now.
Historically low unemployment (1.8% in MN) has given employees more clout. Workers have grown accustomed to remote work and more flexibility. Working remote means working anywhere. This means time spent commuting or riding on public transportation can be spent on increasing productivity or used for leisure and many home offices are popping up in vacation or lake home environments.
This trend is transforming the way we use office space and will impact demand for years to come! Many office workers have gone to a hybrid schedule of in-office and remote to 100% remote in some instances. A hybrid approach may have a dramatic impact on demand if businesses begin to limit office visits to 2 or 3 days per week and implement a hoteling model. Vacancy rates, which are already at historical highs, could increase even further. With leases having staggered expirations over the next 12 to 60 months it will take time for the full impact of this shift to be felt.
Read full Market Notes here Market Notes Vol 15