JLL
The unprecedented experience of the first two years of this decade has required organizations to adapt fast and pivot quickly to support their workforce through a global public health pandemic. As companies emerge from the crisis, they now face critical challenges. How do companies embrace new dynamic working to their advantage? And what does this mean for the future of commercial real estate?
To provide answers to these questions, JLL has surveyed 1,100 strategic leaders around the globe on the issues influencing their decision making.Here are our five key takeaways for San Diego businesses.
1. Hybrid working is here to stay
Strategic decision-makers should not ignore the lasting impact of hybrid work. It should now be considered a permanent feature of the working landscape. With 55% of employees currently working in some hybrid fashion, it is important for San Diego organizations to recognize that this flexibility is essential to attracting and retaining talent.
2. Investing in quality office space
While hybrid working options will be critical, organizations also need to ensure their space is optimized to encourage employees to spend time in the office. Our survey participants tell us they want their future office to be a collaborative, creative space that fosters employee wellbeing and maximizes productivity.
The emphasis on quality office space in San Diego has placed a near-record-high 37% premium on Class A product compared to Class B, with rents rising by 3.4% year-over-year. The flight to quality office can be seen throughout San Diego and across the country.
3. Environmental and social aspirations
Organizations must increase investment in ESG (environmental, social and governance) solutions as environmental and social aspirations are now mainstream. 77% of leaders polled say their employees will increasingly expect the workplace to have a positive impact on the environment. As a result, green credentials and decarbonization roadmaps are at the forefront of decision-makers’ thinking.
San Diego has some of the most aggressive Net Zero Carbon targets in the country with a full Net Zero commitment by 2035. To reach this goal, the city has implemented changes like requiring new residential and commercial developments to have an all-electric reach code starting in 2023. They have also set a 2030 target to phase out 45% of natural gas from existing buildings with the commitment increasing to 90% by 3035.
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4. Intelligent technology investments
As corporates look to elevate the performance of every aspect of their organization, it follows that improved access to technology and greater visibility of data leads to better decision-making. 59% of leaders polled say they either do not regularly capture/report real estate data or only do so intermittently. Deeper investment in technology will be key to unlocking new opportunities to boost performance and productivity for local businesses.
5. Real estate needs are becoming more complex
Most organizations are not equipped to tackle the new challenges of the future of work alone. They will increasingly seek input from specialists aligned to their priority areas of investments, and our research reveals that decision-makers are looking to augment their internal capabilities through working with external partners.
Click here to download the full survey results and report.
About JLL
At JLL San Diego, we have a team of over 100 local professionals who specialize in helping clients buy, lease, sell, build and manage a variety of assets including office, industrial, retail, residential and hotel real estate.
With over 1,300 lease transactions totaling 18.1 million square feet and $5 billion in sales under our belt since 2019 – our trusted advisors have the local market knowledge and insight you need to address changing business demands, challenges, and risks.
Click here to find out more about how we can help you prepare for the future of work.
