Five Predictions for the Future of Work in 2024

2023 was a year of evolution for the commercial real estate and flex office sectors. Office utilization is currently hovering at around 50% , indicating that the future of work has officially arrived and the hybrid model - which calls for a dynamic, experience-driven workplace strategy inclusive of third places to bring teams together for meetings and events in addition to flexible workspace options - has emerged as the new standard.??

The ripple effects of this change are being felt across the commercial real estate and flexible workspace industries, as evidenced by the falling valuation of Class B and C buildings and the bankruptcy of WeWork (read more of my thoughts on that here ).? So what does that mean for the way we approach work in 2024?? Here are my top predictions on how we’ll see the office change next year:??

1.? Employees become "members"

It’s clear that the "flight-to-experience" is driving the modern workday experience. This will lead to what I’m calling the “social club-ization” of the office, with buildings partnering with brands like Convene to provide tenants access to amenities, perks, and experiences designed to lure employees out of their homes on a regular basis and feel part of a community. We expect this will be an attractive offering for Gen Z entering the workforce and will be especially helpful for addressing the current loneliness epidemic in the United States.?

2.? Buildings become "brands"

Brands getting into buildings isn’t necessarily new, as evidenced by the hotel industry and the recent boom of these types of residential assets in cities like Miami, Florida. With Class A+ and Trophy buildings outperforming all other asset classes, developers and owners need to look towards a holistic repositioning of their office buildings to become relevant in the new world.? In 2024, we will see the rise of buildings-as-a-brand across the commercial real estate sector.? These assets will be rich with amenities, infused with hospitality services and run by established brands like Convene.? I also predict that property management will be replaced with experience management as the real value moves from the back-of-house to the front-of-house.??

3.? The workplace is no longer a place, but rather a "network"?

With the rise of hybrid work, the flexible workplace industry will begin to function similarly to the hotel industry, with a single operator overseeing multiple brands and providing clients access to a curated network of spaces globally. This bodes well for clients, who will have access to a much larger network of purpose built meeting and workspaces around the world, while also allowing the operator to benefit from economies of scale.? When choosing a hospitality partner to manage their assets, landlords will look to partner with these larger platforms, who have the scale, experience, and distribution to drive better financial performance.?????

4.? The office is dead, long live the office?

The future of work is about choice, flexibility and human experience. While the genie is out of the bottle on hybrid work, high-performing organizations still need places to come together, to collaborate and to create. You can't run a business exclusively on Zoom and Slack. Commercial real estate’s reckoning is much more complex than return-to-office, it’s about rethinking what the office is and the purpose it serves. Landlords will have no choice but to invest in amenitized buildings to create workplace destinations and will need to partner with a hospitality provider like Convene that is an expert in cultivating lifestyle-driven experiences.

5.? Fewer, bigger, “better” in-person events

We saw the rise of “fun-flation” at the end of 2023 - in other words, consumers spending more on bespoke experiences instead of things. Convene saw the same trend in our Meeting & Event data and client behavior. Towards the end of 2023, Convene witnessed an on-average 35% increase in spend by clients to produce large meetings and events that brought teams together in-person. In fact, Convene’s average contract value has seen a 79% increase when compared to 2019. Now more than ever, programs need to be more impactful and experiential to encourage attendance and drive attendee engagement, and we expect to see this trend continue in the new year.?

In 2024, we’ll continue to see organizations spend more money on fewer, high-impact meetings throughout the year, with a focus on local meetings and events to reduce travel costs. We will also see planners consolidating their programs in 2024, resulting in fewer overall programs throughout the year. Fewer, bigger, better, ultimately leading to more impactful meetings and events.?

In Closing

The way we work will continue to evolve but one thing is clear: flex is here to stay.? By helping buildings become brands, employees become members, and the workplace become a network, hospitality providers like Convene are leading the charge in the office revolution.?