Enhancing Employee Well-Being Through Office Optimization

Pretty much everybody agrees that employee collaboration has taken on a new meaning. Of course, this has created quite a rocky office market. But, if you look closer at the data, you’ll see that the offices that are struggling are not the premium Class A properties, it’s the old and outdated offices that are witnessing rampant vacancies.

Because, to maximize human interaction and engagement in hybrid settings, companies are now investing in their portfolios differently, with more emphasis on creating an environment that is worth the potential commute. Let’s call it a quality over quantity epidemic.

So, what does this mean for the office of the future and the evolving role of corporate space? Well, let’s look at Citi Bank’s major Tampa redesign as an example. With the goal of investing in a collaborative workplace that prioritized employee well-being, the company took deliberate steps to ensure their campus is future-proofed and value-facing. And they put their money where their mouth is to achieve this, laying down $60 million for the new and improved facility.

Let’s take a look at Citi’s upgrade choices and how they represent greater trends in the CRE space.

Invest in Promising Locations

First and foremost, it’s worth mentioning that the facility in which Citi poured tens of millions of dollars into corporate upgrades, is located in Florida. Now, this shouldn’t be too shocking considering that the corporate migration to Florida is well into its third year. Citi is one of hundreds of businesses that expanded or relocated their corporate footprint in the state since the beginning of the pandemic.

“We’re growing and [Tampa] has been and continues to be a strategic center for Citi, certainly in North America and globally.”

-Citi managing director and Tampa site leader Nick DellaSerra.

What is a little more scandalous to consider though, is that Citi is headquartered in New York. So rather to choosing to invest in its current footprint there, Citi selected Tampa for an expensive and updated campus redesign… And when you hear about some of the features on the 137,000 square feet campus a little later on, you can guess how unaffordable it would be in a high-cost city like New York.

If we solely take a look at the difference in base rent Citi is experiencing, In Tampa, for example, Class A office rents are around $36 per square foot, which is a very attractive value compared to Manhattan where average is closer to $80 per square foot. Let’s use the average numbers for some estimation on what Citi would save in 1, 5, and 10 years simply by being located in Tampa.

Simply put, corporate dollars go further, a lot further. Over a ten-year lease Citi is saving themselves $60 million. And because they have such a lower overhead, they’re funneling the extra capital into upgrades that strengthen its relationships with its employees.?

Tampa proved to be wiser investment for corporate funding than New York. Because they’re not just saving in rent either. Florida has a lower tax-burden, less restrictive business environment, and overall more affordable living costs. Learn the other reasons Why Businesses are Moving To Florida.

If you're considering a Florida relocation or expansion, you should know that this is what we do. We’re licensed and experts in finding you the right space in Florida or any other state. Check out our corporate migration series if you're still curious.?

Create a Welcoming Environment

The 137,000 square feet campus in Tampa also rethinks the norm of the office place. Citi gave employees the option for more work-life freedom with a hybrid schedule. Rather than force employees into the office, they invested in upgrades that make it into a compelling place for collaboration. This is proving once again that businesses do believe in the value of the office place, but they're being more selective about CRE spending to maximize the employee experience while still streamlining portfolios.

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