The corporate world may seem unchanging when viewed through a daily lens, but when you zoom out, you'll see a remarkably dynamic and ever-evolving market.
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Allow the numbers to speak for themselves. In 2024, the projected value of the Australian commercial real estate market is expected to reach AUD$1.72 trillion. This is a growth rate of 3.05% from the previous year.
This growth is fueled by multiple variables: innovative technology, shifting work paradigms, a desire for high-quality assets, and a global need to uphold sustainable practices, to name a few.
Furthermore, this growth feeds off itself; as the Australian corporate world grows and expands, it'll feel like a more attractive investment option for venture capitalists, setting the grounds for a flourishing economy later down the line.
That said, one may ask themselves a series of questions: is this growth sustainable in the long term? Does my company need to adapt to these changes? How can my commercial property take advantage of the current trends?
Without further ado, here are some trends that you can expect in corporate real estate in the upcoming months if not years.
Amenities for remote and hybrid workers
While many corporate offices have called for employees to return to the office, some have permanently shifted to embrace the hybrid and remote setup.
For these companies, this begs the question: what does remote working culture mean for previously filled-up office spaces and private cubicles?
As the remote working trend cements itself as a mainstay, corporate real estate owners are changing their corporate layouts to account for this new paradigm shift.
For one, many corporate real estate owners are holding off expanding their buildings in the meantime. This is because the workforce won't always be in the building on a given day, thereby maximising usable space even with smaller-sized property.
Private spaces like cubicles are also becoming more and more obsolete. This is replaced with a rising call for a more seamless interior design.
Coworking spaces are starting to embrace open and free-flowing designs, allowing for a more collaborative and productive work environment that's taking up less room.
Beyond the workspace, some corporate offices are also now introducing amenities to keep their hybrid workforce happy when they do return to the office.
Filled-up pantries, quiet spaces, gyms, and game rooms are some things that can support employee satisfaction in the work environment-and more large corporations are starting to get in on this trend to stay competitive.
These amenities are present to help improve the office experience in the work setting. This can help keep them productive and creative, which is an investment in itself.
Heightened security measures
Security has always been at the top of the checklist of things to consider in a corporate setting. But in 2024, the need for it is increasing even more, both in the physical and digital realm.
In a physical store, retail businesses and corporate offices should be wary of shoplifting and theft cases.
One way to protect your corporate setting in such cases is by insuring your store with property and liability insurance.
Putting anti-theft security systems by the doors and CCTVs in strategic corners of your establishment also helps dissuade these attempts. Training employees to protect themselves (while also having protective apparel within arm's reach) is also critical.
That said, the most prevalent security risk most Australian businesses face over the last year is cybersecurity attacks. Data breaches and DDoS attempts are some threats to businesses that can disrupt normal operations-leading to an increase in expenses.
One way to help your corporation's property uphold better security practices is by installing security fixtures throughout the space.
If documents are important enough to be safeguarded, lock them away with a key. Keep servers in a protective room to avoid unwanted hands from tampering with them.
Doing these things can greatly improve your place's security, which can help your property remain competitive in an increasingly security-focused market.
Less physical paperwork, more servers
Another emerging trend among corporations is the decreasing dependence on traditional physical office storage solutions for storing essential files and documents.
More companies are turning to cloud and server-based storage solutions to hold important data and documents. These options provide a new layer of security to files and classified information, making them great tools in the modern corporate landscape.
Furthermore, this move also helps promote environmental sustainability since it's less dependent on paper and ink.
With how important it is to foster a good global image, companies that showcase an affinity towards ecological practices can also gather public support from this move-which is a good marketing and brand-building effort.
Moreover, servers allow business to utilise blockchain technology like Ethereum to the fullest. This cryptocurrency offers smart contract technology that can help businesses execute actions when certain conditions are met-which can help prevent fraudulent activity when transacting with potential clients.
That said, owning an Ethereum wallet is necessary, so keep the current ETH to AUD rates in mind to see if current rates are worth buying.
Regardless of your reasoning, if you own a corporate property and want to stay on top of trends, consider dedicating a space for server solutions-or at the very least, have a robust internet line in your space.
Demand for new construction projects will remain low
With many corporate offices encouraging their workforce to take up remote work setups, coupled with a turbulent short-term business outlook and increasing interest rates, there's a noticeable devaluation of office spaces around Australia and metropolitan cities around the globe.
In fact, some experts say that current office towers could lose up to 25 per cent of their value by the end of the year, leaving corporate property owners vulnerable to losses if they intend to sell.
This slowdown is indicative of a buyer's market, leaving sellers and investors scrambling on what to do next if they plan to liquidate their property assets.
The construction of new office towers throughout Australian business districts may be put on hold over the next coming years in consideration of these changing work and economic patterns.
This diminished supply means that there'll be an upheaval in material costs and supply chain processes. This can translate to lower prices.
Investor sentiment will also tread towards cautiousness for office space investment, calling for current property owners to recalibrate their strategy and current layout against their competitors.
More shared coworking spaces
Instead of corporate buildings catering to a single business per floor, the new trend is gravitating towards creating flourishing shared coworking spaces.
This shows that corporate property owners envision office environments to be more community-oriented and collaborative in the upcoming years.
Coworking spaces are likely to boom in the future, reflecting the newly shifting work setting. The days of private offices and company-exclusive floors are slowly getting phased out.
Instead, these are getting replaced by open desks and shared meeting rooms. These aren't only open for single corporations, but they're shared among individuals, startups, and other people who have access to these modern amenities.
The proliferation of this new setup highlights the changing corporate paradigm where the values of networking and collaboration are upheld.
This information is of a general nature only and should not be regarded as specific to any particular situation. This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange. This is not intended for use as investment, financial or legal advice as each individual's need will vary.
