Offices: The new ways of working

O ices: The new ways of working

CEUSTERS |

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The impact of the new ways of working on the o ice market

We gathered four real estate experts, Rikkert Leeman, Laurent Calonne, Ronny Nuten and Mathieu Van Marcke, around the table. The topic? The ‘new way of working’. Will we soon return to the o ice life we had before? Or has home-working become an acquired right? What should the workplace of the future look like? Is it still relevant? These questions ignited an inspired discussion in which the concepts of ‘flexibility’ and ‘balance’ prevailed. Ronny Nuten, Head of O ice Agency at Ceusters, jumpstarts the panel discussion. ‘We live in more than interesting times’, he states. ‘After all, the corona crisis has turbocharged a trend that had already been present in the o ice market for some time: hybrid working. This acceleration has, in turn, set all kinds of dynamics in motion. Not just whether you still need an o ice or what a present-day workplace should look like, but it also raises questions about labour legislation. How, for example, do you embed home-working into the company policy? And what about insurance? The ‘new way of working’ due to COVID clearly awakens questions about both business accommodation and business management!’ Rikkert Leeman, CEO of Alides, immediately chimes in and proposes looking at the last year and a half as one big experiment. His fellow panel members are immediately intrigued.

Rikkert Leeman: ‘Take, for example, the first full lockdown. The compulsory remote working pleasantly surprised many people: no more annoying commute to work, an easier combination of private tasks with work, the possibility of getting some fresh air during the day, ... Moreover, it turned out that certain work activities, that are rather technical or repetitive in nature, could indeed be done just as well from home. And maybe even better! Because it is easier to focus at home. In short, we can conclude that it was a successful experiment. Thanks also to the good weather. But then comes the other side of the coin. The ‘experiment’ has lasted too long. The novelty soon wore o . The fourth virtual happy hour was one too many. Our heads were about to explode after the umpteenth Teams meeting ... And above all, we have discovered that we are greater social animals than we had ever suspected. I believe in management by walking around; you get so

much more useful information from informal contacts. There are many mini contact moments in which important information can be checked. You don’t set up a Teams meeting for these small, yet important, things.’

Laurent Calonne: ‘We can’t ignore some of the pros. Multidisciplinary remote cooperation is very successful, at least if it is well supported technically and focussed on well-defined subjects. I have experienced this myself on several occasions. The ‘Teams era’ has generated a lot of work comfort. I can even say that this technology has given our company a productive boost. I just had a very successful meeting while commuting by train thanks to this technology. It used to be unthinkable and would have cost us a lot of time. Working from home helps save on mobility, which results in greater availability. At the same time, you have to add the nuance that tra ic to and from work also o ers the possibility to switch on and o and, moreover, it is for many people the best time to make some phone calls. But when talking about the pros, we must also honestly name the cons. The best ideas and the crucial social component require a real-life, in-person gathering.’ Mathieu Van Marcke: ‘It was no coincidence that Google abandoned its own experiment of making home-working compulsory for everyone. For both employees and employers, home-working has, besides some positive aspects – which no one will deny and which I believe we will not abandon – also created problems. For example, employees develop stress because their work life and private life are too mixed up and they can no longer vent over a co ee break ... And on the employers’ side, they have seen productivity fall during the compulsory home-working period! Essentially, the peace and quiet of your home can help you concentrate ... but it is not a perfect alternative, and certainly not for all tasks.’

Ronny Nuten: ‘Furthermore, we have noticed another problem here at Ceusters: it is di icult to onboard people. As a family business, we have a company culture that relies on a very transparent and, above all, very close cooperation. It is quite a challenge to convey that culture from a distance.’

O ices: The new ways of working

CEUSTERS |

6 The topic of company culture seems to have hit a nerve. ‘I would go as far as to say that there is no such thing as a remote corporate culture. You need people to work together in ‘real life’ for them to move in the same direction. So this experiment can’t be considered as an unqualified success’, Rikkert Leeman responds. All of the panel members nod in agreement. Does that mean that we need to push the pendulum back in the other direction? No, they say in unison. Depending on the organisation, the activities and the culture of the company, we will have to look at how and where work can best be organised.

Rikkert Leeman: ‘We need to find a new equilibrium, which will not be a one-size-fits-all formula. Only a few months ago it was suggested that the o ice was dead. I am not at all convinced by that hypothesis. On the contrary. How will our situation evolve? Well, it is an iterative process. We are all still searching for the ideal formula and how it can be anchored. Nevertheless, it already seems clear to me that the ‘hygiene’ situation and the corresponding need to alter the spatial layout of the o ice has undeniably changed things. I don’t see people wanting to sit close to each other in landscape o ices any time soon, maybe not ever again. Or under low ceilings and without well-functioning ventilation. Moreover, the average usable area of an employee must evolve from 12 or 13 m2 towards 30. That extra ‘oxygen’ seems to have rightfully become an acquired right.’ Laurent Calonne: ‘Cubicles are set to disappear. That is inevitable. I am firmly convinced that o ice space will more than ever be used in the war for talent. And I’m not talking about the obligatory foosball table or ping-pong table. No, we are talking about o ices with, for example, an enjoyable shared food and beverage area instead of a mini-kitchen. A shift to fully equipped meeting places ... The o ice will be much better suited for both e icient and pleasant cooperation. After all, fully focussed, individual working on a specific task can still be done at home. By providing an o ice with a pleasant sustainable working environment and all sorts of extra facilities and services, you will be able to make a real di erence as an employer.’

Ronny Nuten notes that it is inevitable that there will be corrections in the market. ‘Some companies have room for improvement in this area, but that requires necessary investments.’ Which immediately leads Nuten to the next question: ‘Does the gap between the better equipped o ices and the others threaten to quickly become much bigger than it already is today?’ Mathieu Van Marcke chimes in and wonders out loud whether, how and to what extent those investments will be able to be passed on.

Rikkert Leeman: ‘In London, it is already visible that the ‘Grade C’ o ices are having a very hard time and, at the same time, there is a great shortage of ‘Grade A’ o ices, which are easily accessible by bicycle or public transport and enable collaboration and a collective experience in an ultra-modern way. Besides, it may seem like a side issue, but it really isn’t: there have never been so many ergonomic complaints as in the past year and a half. People don’t have the optimal o ice chairs at home. A workplace brimming with work comfort – with literally motivating spaces – is a good weapon against the social isolation and the di icult separation of work and private life when working from home… I am firmly convinced that what was good in the past will become even better, and what was bad is deteriorating even faster. The COVID crisis has widened the gap, but the essence of the problem was already there.’

Laurent Calonne: ‘The shift has definitely begun. O ice buildings that were already struggling are finding it even harder to rent out their space. I suspect that companies will opt for a central o ice – fully equipped, state of the art – with a few small satellite o ices. The latter tends a little towards co-working, but that business model has clearly expired. That has now been su iciently proven. What will continue to work is the provision of services related to co-working: ensuring that room X is equipped with all of the technological facilities, and drinks and catering at a specific time, or that room Y is preheated by a certain time ... I am thinking of real-time, remote control of all kinds of comfort parameters, but also movement detection, presence and absence control and access control. Managing this flexibility requires a certain expertise. In any case, the shift towards even greater digitalisation in o ice management has begun. In a modern o ice, technology is taking an increasingly prominent place. And yes, that too requires investment. (o ices-as-a-service)’

Flexibility at all levels

Mathieu Van Marcke, president of Realty Belgium, raises the question of how big the return to the o ice will be once the COVID measures are abolished. Since the pandemic has taken over the world in waves, we have the advantage of being able to look abroad. Van Marcke notes that in China the return to the o ice is complete and in Australia it is as high as 80%. ‘Quite remarkable. The United States, on the other hand, shows an extremely variable story where the return to the o ice depends on the sector – with Goldman Sachs forcing everyone back to the o ice full time and companies like Apple and Microsoft keeping their people at home as much as possible.’ Rikkert Leeman rightly remarks: ‘There is no greater marketing stunt imaginable to promote one’s own services, of course. The technological advances have also undeniably been a boost for alternative approaches to work. The concept of the new way of working is inextricably linked to the technological boost.’ But despite all the technology, none of the panel members see remote working as the nail in the co in of the o ice. Or, as Ronny Nuten says: ‘It’s not because home-working is a keeper that the o ice space is not.’ Laurent Calonne: ‘Many advantages have undeniably been discovered in the last six months and you must try to cleverly encapsulate these in your own organisation. I believe in a formula in which – obviously depending on the specific activities and sector – x number of days a month can be worked from home combined with a few fixed days at the o ice. This means that the management at Banimmo will be present at the o ice on set days and – importantly – be available to our employees all the time. So on those days, we make sure that we are not hauled into meetings throughout the day. Instead of a few fixed days per week working from home, I believe in a fixed number per month, because one project naturally requires more consultation than another. Every week has its own requirements.’

Ronny Nuten: ‘The decisive factor here is flexibility. The o ice will thus become a place of cooperation rather than a workplace. The o ice will continue to play a central and crucial role for companies. We are also noticing this in reality, because we still see companies in the market readily entering into long lease commitments.’ Rikkert Leeman: ‘There’s no denying that flexibility comes at a cost. But it is true that companies today are willing to invest in that flexibility. Precisely because they see that it benefits the working climate and thus productivity. In the large o ice ecosystem, I see problems emerging elsewhere. Much business travel will be cut − which will also be beneficial from an ecological point of view – and which will have an impact on business hotels. Or take the hospitality sector in o ice districts ... They have had an incredibly di icult year. Since, as I believe, o ice life won’t return to full time, they too will have to adapt.’

O ices: The new ways of working

CEUSTERS |

8 Mathieu van Marcke launches a thought experiment: ‘It may be a wild idea, but could a formula work in which company X uses an o ice for 2 or 3 set days and company Y on the other weekdays? A co-working at company level, as it were ...?’ The reactions at the table speak volumes. The panel members see little point in this idea. After a brief analysis of the dark clouds that are gathering above the very concept of co-working, the members return to the thought experiment.

Laurent Calonne: ‘I don’t believe in that formula. Don’t companies want to radiate a certain individuality? Especially through their o ices. Are you going to change the corporate branding every time? Surely not. Companies are right to hold on to their identity. For start-ups, something like this might work. I rather see flexibility as evolving towards an o ice space that can be expanded or reduced. The possibility of shifting from 100% to 75%, or vice versa. Without having to move. We are already providing that possibility in some projects today, through an option that can be activated during the course of the lease.’

Rikkert Leeman: ‘That kind of flexibility will also come at a price. After all, a hotel room has di erent price indications when booking for a night or a week. Due to Belgian inertia, certain changes take time. New labour and rental agreements come at a slow pace. It is slightly cynical of me to say, but this inertia also means that companies have time to thoroughly review the o ice market and take well-founded decisions. But, regardless of how flexible the working days will be in the o ices, there is another story at play: sustainability. And there is no time to lose on this front. Investments will have to be made anyway.’

Laurent Calonne: ‘You see, there is nothing as stable as change. The real challenge is how you deal with change (and the speed at which it happens), so we definitely need to aim for flexibility in our thinking and our actions. That flexibility will help us to design o ices that cater for rapid change. And to respond to what was said earlier about a ‘new equilibrium’; I believe that there is a demand for a balance between people and technology, but also the environment. In short, new formulas are bound to emerge.’

Rikkert Leeman is the CEO of the Ghent-based real estate investor and developer Alides, geared towards the leading Flemish cities, Brussels, Luxembourg and Poland. The company mainly invests in o ices, but also in residential property, hotels, healthcare, student accommodation and semi-industrial property.

Laurent Calonne is CEO of the real estate developer Banimmo, which is based in Brussels. The civil engineer describes himself as an innovator and a sustainability believer, and he has extensive experience in real estate development.

Mathieu Van Marcke is a member of the board of directors of Ceusters, organiser of the real estate summit Realty, founder of the real estate communication agency hooox and an active investor in PropTech start-ups.

Ronny Nuten is Head of O ice Agency for Ceusters and is responsible for a team of a dozen consultants spread over four o ices in Flanders and Brussels.

A sustainable future

The sector has changed enormously in recent years. Even before COVID. The aim for ‘sustainability’ wasn’t new, for example. In that light, the Energy Performance of Buildings regulations, also known as the EPB standards, have been introduced, causing o ices built in 2006 to be completely outdated in terms of EPB today. The commercial life-span of a building has been shortened as a result. At the same time, the o ice concept is being profoundly reinvented. After the abandonment of the classic o ice concept at the end of the 1990s and the introduction of the landscape o ices, we are now clearly ready for something new.’

Ronny Nuten: ‘It must be said: everything is constantly changing. That is not easy. As a building owner, you don’t want to price yourself out of the market, you have to keep investing – both in terms of the furnishing and the modularity of the building, and in terms of energy and sustainability ...’

Laurent Calonne: ‘Just think of certificates such as the sustainability label BREEAM (in full ‘Building Research Establishment Environmental Assessment Method’) for the realisation of sustainable buildings with minimal environmental impact as of 2009. Or the WELL Building Standard, which monitors up to 700 scientifically-based criteria to see if your building supports the well-being of its employees ...’

Rikkert Leeman: ‘Development has undeniably become more expensive. The list of expectations and criteria to be met keeps growing. Anyone who wasn’t in on it before COVID is now fully aware. And this is the background against which the search for the future of o ice life is taking place. But one thing is clear to me: the o ice is not dead. In fact, the o ice will play an even more crucial role in our professional lives. It will look di erent, that’s for sure. And in my opinion, it will become a better place for better co-working.’ CONIX RDBM Architects were already considering moving to a new o ice before the pandemic. “We wanted a contemporary o ice, one with long-term potential. Because the best way to feel optimistic about the future is to shape it yourself,” says Christine Conix. “Since then, our plans have really started to take shape. These days, you can often spot us in a cheerful mood at a construction site on Antwerp’s Mechelsesteenweg, because we’ll be moving into the ground floor of the former premises of the Antwerp Water Works. We found the location thanks to the local expertise and mediation of Ceusters and its o ice department. Our new o ice will combine flexibility with (circular) sustainability. These two nouns summarise how we see the new way of working (which was obviously influenced by trends that the pandemic set in motion) and, above all, how we see the o ices of the future. We want to lead by example,” Jorden Goossenaerts explains.

It is clear that technology will play a key role in the new o ice. CONIX RDBM Architects is planning a giant screen with a height of 3.5 metres, for example, to display all kinds of content; in line with the idea of ‘show, don’t tell’, the screen will present clients and employees with a gripping visual story. The screen is part of a large, open space that is ideally suited for events – including after-hours activities. “The company restaurant – to use a conventional and rather boring word – will straddle multiple concepts. Once the working day is over, it will morph into a regular restaurant. All of this means we’ll be strengthening our connection with the urban fabric. We’re literally inviting the city into our o ice. The workspace in the o ice will primarily be a place to work together, as a team,” Christine Conix points out.

“Flexibility is key, as is sustainability. We’re using so-called urban mining for the interior design of our new o ice. When ING’s former head o ice in Het Zandkasteel in Amsterdam was being dismantled, for example, we salvaged a series of glass partitions. We’re also repurposing their insulation walls – filled with recycled jeans! – which we’re currently using in a temporary project in Brussels. And we made sure to reuse everything that was already present in the old o ice on the Mechelsesteenweg. We didn’t let anything go to waste. For us, sustainability means 100% circular sustainability. In terms of energy, we’re also pulling out all the stops, with fully circular management of heat and cooling, including a green digital processing unit. This not only eliminates the need to install new windows, but also means that our o ice will have the power to heat the entire building. We do it because we can, because we believe in it and because it works! It’s a story we’ve written ourselves and which we’re replicating in our projects,” Jorden Goossenaerts concludes with a strong sense of commitment.