Returning to the Office: Our Predictions
The pandemic hasn’t fully released us from its clutches, but 2022 has brought a renewed hope that the end is in sight. Vaccinations are widely available, the current industrial vacancy rate is the lowest it’s been in more than two decades at 3.5 percent, downtown businesses are prospering, and people are going back to work. Once again, Cleveland is proving we’re a city you can’t keep down.
Here are our predictions about companies returning to the office in 2022.
Hybrid is here to stay
The pandemic forced companies who hadn’t previously considered remote work an option to rethink their policies. Remote work has provided flexibility and added to the gradual decline of the typical 40-hour work week. It’s changed how companies hire, as well, because remote work offers the opportunity to hire candidates outside your local area. Many companies are looking for solutions to leverage remote work’s strengths and honor the flexibility it provides.
But, for many Cleveland companies, a fully remote solution isn’t ideal. In a PWC survey of over 100 executives and 1,200 employees, over half of executive respondents report that at least three in-office days a week are needed to maintain company culture. In the same survey, 87 percent of respondents agreed the office was necessary for collaboration and building relationships with other team members. Thus, we believe the future is hybrid. Remote work isn’t going anywhere, but neither is the office.
The office is back
Millions of employees are returning to the office each month in some capacity, according to the U.S. Department of Labor’s monthly employment report. But, the traditional office may not work in the post-COVID, hybrid world. Offices need to accommodate their full workforce and also be prepared to support collaboration — in person and via video connections. In fact, most of the employees returning to the office in a hybrid model will be seeking the connection and community they can’t find during their at-home days. An open layout, constructed to support one-to-one interactions as well as full-scale group meetings will be ideal in 2022. There are plenty of properties in the Cleveland area to support a reimagined office space.
Downtown Cleveland is the place to be
The Downtown Cleveland Alliance’s (DCA) “recovery report” indicated 90 percent of employers have returned to downtown with either full-time or hybrid models. It makes sense. Downtown Cleveland is having a bit of a renaissance. Late 2021 brought the Rock & Roll Hall of Fame Induction Ceremony to town, and the 2022 NBA All-Star Game will be here on Feb. 20.
As more businesses and employees make their way back to downtown, now is a great time to join them. There are plenty of ideal properties, poised to support an open-air, collaborative environment. For example, The Hanna Building in the heart of the theater district offers modern office suites and a premium location within walking distance to several popular restaurants. Another downtown option worth considering is The Caxton Building off Huron, minutes from East 4th Street. Its high ceilings and large windows make it a perfect candidate for a collaborative work space.
There are many commercial real estate options to choose from right now to support a variety of business needs. Let CRESCO Real Estate help you move your business in 2022. Contact us today for more information.
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.