Weekly Roundup #4: The Art of Occupancy: A Preverbial Guide

Hey, Adappters! Welcome to a new edition of the Adappt Chronicle. In this roundup, we will look at the entire spectrum of occupancy management.

The saying, "Data is the new oil" is so cliche because everyone knows that now, but the injection of data in every decision we take is not. So today we are going to analyze the "#what ", "#where ", "#why ", "#when ", "#who ", and "#how " behind data-driven occupancy management.

But before we do.

According to a recent #cbre occupancy insights survey conducted among 60 organizations spanning 8 sectors and 493 million square feet, 71% of respondents say that they have plans to rapidly expand their hybrid programs.

That's where we come in. Visit Adappt a tool that seamlessly integrates into the future of work without any hassle and best of all? It's #free .

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Now back to the topics at hand :)

The art of occupancy in 2023

In this week of the Adappt chronicle we are going to look at the data behind whats driving occupancy management. We will break down the latest CBRE occupancy insights for 2022-2023.

The report is based off of the data collected from 60 large enterprise organizations across 493 Million Square Feet from 8 different sectors

Did you know?

In 2022, so far...

• 71% of major occupiers plan to expand their hybrid program in the next 3 years
• 90% of Commercial real estate teams gather utilization data up from 11% in 2021
• 65% of Global real estate heads say that improving space data accuracy is a prime goal in 2023

What were the goals of real estate teams in 2022-23?

Portfolio optimization continues to be a priority, but return-to-office planning and hybrid working now dominate C-suite agendas. Corporate real estate teams are not only gaining influence but are also under increased scrutiny as they shape the future of work.

Three Key Areas of Focus for 2022-2023:

1. Hybrid Working Schemes: The future is flexible, and organizations are striving to provide the desired flexibility while ensuring connectivity between employees and their organizations.
2. Measuring Space Utilization: Real-time data is crucial to optimizing space within portfolios, creating the perfect balance of workstations, collaboration spaces, and amenities.
3. Data-Driven Decision Making: Emphasizing improved data quality and integration to mitigate risk and inform future real estate and business decisions.

Flexibility shapes the new form of work

Almost 60% of companies have defined criteria for determining hybrid working eligibility. For these organizations, eligibility is largely determined by job function (57%) and manager discretion (45%). Only 21% leave the hybrid working choice up to the employee.

Many organizations adopt a "guided" hybrid working strategy, framing flexible schedules to anticipate office space needs. This clear approach enhances collaboration by ensuring the right mix of colleagues is present, and helps managers ready the necessary spaces and services.

Why organizations don't support hybrid flexibility

• 70% of C-suite level respondents say poor cultural fit as the reason they do not have hybrid working, a 94% increase from 2021
• 20% of respondents cite lack of C-Suite support as the primary reason, a 39% decrease from 33% in 2021.?
• 10% of respondents cite job function as the reason they do not have hybrid working.

What are the spaces that attract people to the office?

Future workplaces will be designed with collaboration and socialization in mind to match new work styles. To compete with the allure of working from home, occupiers will implement hospitality-inspired experiences in the office.

Measure what matters

• 89% of respondents use utilization data in scenario development, up from 74% in 2021
• 58 of respondents plan to increase the use of utilization data for planning
• The importance of people density rose 27% year-over-year, while both space-sharing ratios and reservation rates spiked more than 200%.
• Design density and vacancy fell 25%, hinting at less relevance as hybrid working evolves.

Demand for sensor-based utilization data will increase as companies seek more granular data to identify cost efficiencies and guide ESG commitments.

• 70% of respondents use more than one method to track utilization, up from 59% in 2021
• 36% of respondents track utilization in collaboration or amenity spaces

Signals to watch in 2023-24 and beyond...

Will Hybrid work continue to grow?

• Planned expansion by 7 out of 10 respondents over three years.
• Likely to become the default model for knowledge workers.

Will space chargebacks be eliminated?

• 28% considering changes in 2022.
• No elimination foreseen in the near future; the process may be disrupted.
• Increased space-sharing and preference for collaboration areas may lead to pay-as-you-go models.

Will office utilization return to pre-pandemic levels?

• Currently under 40%; gradual increase through 2022.
• Expected normalization in the 30% to 50% range by Q3 2023.
• Closer to pre-pandemic levels by 2024, with right-sizing and more efficient designs for hybrid working.

Will workstations get bigger?

• Permanent shifts influenced by the pandemic.
• Emerging patterns to redefine workplaces.
• 2021: Sizes under 35 sq. ft. (3.3 sq. m.) most common.
• 2022: Sizes between 35 and 49 sq. ft. (3.3 to 4.6 sq. m.) most common.
• Prediction: Workstations will grow in size but shrink in quantity with increased space sharing.

Are private offices going away?

• 31% don't provide private offices, up from 25% in 2021.
• Indication: Private offices may decrease, with more shared and reservable spaces.
• Private spaces will continue in different formats, emphasizing collaboration.

If you would like to read the entire report in detail you can check it out here

In other news...

Climate Change Update: 1.5C Target Likely to be Missed, Warns Leading Scientist

In a candid interview with the BBC's Today programme, Professor Sir Bob Watson, former head of the UN climate body and one of the world's foremost climate scientists, expressed his pessimism over the global target to limit warming to 1.5C above pre-industrial levels.

A Dire Warning Amidst Extreme Weather

His warning comes in the midst of a summer characterized by extreme heat across Europe, China, and the US. The UN has stated that surpassing the 1.5C limit will endanger millions more to potentially catastrophic climate events.

A Global Effort Falling Short

The 1.5C target, established at the UN conference in Paris in 2015, has become the core of global attempts to combat climate change. However, governments have been repeatedly warned by climate scientists that emissions reductions are not happening quickly enough to stay within this goal.

Professor Bob's statement is particularly striking given his senior and respected position, including his role as Emeritus Professor of the UK's Tyndall Centre for Climate Research.

He stated: "I think most people fear that if we give up on the 1.5 [Celsius limit] ... I'm very pessimistic about achieving even 2C, that if we allow the target to become looser and looser, governments will do even less in the future."

His concerns were echoed by Lord Stern, Chairman of the Grantham Research Institute on Climate Change and the Environment, who also believes that 1.5C is likely out of reach. Lord Stern suggested that focusing on reducing the cost of negative emissions could help regain ground.

Current Projections and Potential Consequences

Climate Action Tracker currently predicts that, based on government commitments, global temperatures will rise to 2.7C. The UN climate body has stressed that limiting rises below 1.5C would prevent:

• 10 million fewer people losing homes to rising sea levels.
• A 50% reduction in water insecurity.
• A decrease in coral reef loss from 99% to 70%.

Read the whole report here

Solar Power from Space: A Science Fiction Dream Comes to Life

In a groundbreaking achievement that brings to reality Isaac Asimov's 1941 vision of a world powered by space-harvested solar energy, scientists at Caltech recently completed the first successful transmission of energy from space to Earth. Here's a closer look at this potential game-changer for carbon-free energy:

Beam Me Down, Sun!

Led by Ali Hajimiri, the team from Caltech made history when they sent a microwave beam of energy from a satellite in space, which was received on Earth. This triumph has been likened to Alexander Graham Bell's first telephone call. The moment was captured on video with shouts of, "Oh my God, we got it, guys!"

The Future of Solar Power

While solar power currently meets about 3-4% of global energy needs, its effectiveness is limited to daytime and cloudless conditions. In space, the sun's rays are always available. The challenge has been how to harness that energy and transmit it back to Earth—a challenge Hajimiri and his team have been working on for decades.

How Does It Work?

Hajimiri demonstrated how beams of energy, using currently available technology, can power basic household devices such as lights and drones. He likens the transmitted energy to standing in front of a heat lamp. The power's direction can be controlled precisely and can even be used to power a drone with no battery.

The Future at Guru

At Guru, the company co-founded by Hajimiri, he showcased how the technology could be scaled up to power even airplanes in the long run. The scientists are planning to build a gigantic series of "flying carpets" in space, each the size of a football field, to soak up energy and send it back to Earth.

Safety and Impact

The lightweight and compact design of these "carpets" makes them easier and cheaper to launch. The technology uses non-ionizing wavelengths, ensuring that it doesn't create chemical change. Additionally, the power density is kept at a safe level, much lower than what you get from the sun.

The potential impact of this innovation is immense. Solar power beamed down from satellites could harvest eight times more energy than land-based solar and could bring power to remote areas without infrastructure.

A Timeline for the Future

While commercial space-based power may still be a decade or two away, the possibilities seem endless. From powering drones to airplanes without jet fuel, or even offering a hybrid solution, the potential is vast.

Watch the journey of GuRu here

India's Proptech Sector Surpasses $4 Billion in Investments

2022 Recap: A Slight Dip but Strong Segments

Though the funding in proptech experienced a minor decline in 2022, falling to $719 million from $742 million the previous year, certain segments like co-living and co-working secured the majority share. In fact, they accounted for 64% of the total investment, highlighting the substantial growth potential and investor confidence in these areas.

Co-Working & Co-Living: Leading the Way

Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com, and Makaan.com, emphasized the rapid expansion in the co-working segment over the past three years. This growth has been fueled by escalating corporate demands for flexible workspace solutions. Furthermore, the reopening of educational institutions and offices has driven a recovery in the co-living sector, resulting in a demand for superior quality rental accommodations.

Construction Tech: Building the Future

Reflecting the industry's focus on streamlining construction times without sacrificing quality, proptech firms that specialize in construction technology claimed 15% of the total funding last year.

Real Estate Innovation: A Decade of Growth

In the last ten years, and particularly the last three, the real estate sector has embraced innovative technologies. From property discovery to deal closure, technology is revolutionizing every stage of the real estate lifecycle. Ankita Sood, Head of Research at Housing.com, PropTiger.com, and Makaan.com, highlighted how this transformation is cutting costs and time, making processes more efficient for all stakeholders.

A Positive Outlook: Growth Ahead

The proptech space has witnessed an impressive annual growth rate of 49% since 2010, and the future looks promising. The overall trajectory for the sector remains upbeat, with innovation and investment showing no signs of slowing down.

Till next time...

So that concludes this edition of our newsletter for the week, join us again next week where will explore more trends, developments and dynamics that shape the future of IoT, commercial Real estate, climate, energy and of course workspaces!

Thankyou for reading and have an amazing week ahead!