Learn why 36% of US employees feel their offices don't support productivity, despite high design values
HqO, the leading global real estate experience platform, today unveiled its much-anticipated 2024 State of Real Estate Experience (REX) report.
Compiled from extensive data collected from nearly 400,000 employees across about 200 organizations worldwide, the report sheds light on the pressing challenges and emerging opportunities facing property owners, operators, occupiers, and investors in the commercial real estate (CRE) sector.
According to the report, a significant gap exists between employee expectations and the reality of their workplace environments. Despite 80 perfect of US employees valuing the design of their workplaces, only 36 percent feel these spaces enable productive work.
This discrepancy underscores a disconnect that could impact businesses' ability to adopt successful hybrid work models.
The report also emphasizes the importance of workplace design in employee satisfaction, with two-thirds of global employees agreeing that it enhances their enjoyment and engagement at the office.
However, it also reveals a stark contrast in the CRE industry's approach to sustainability, with 43% of employees doubting their workplace's contribution to environmental sustainability, despite a strong desire for greener, more sustainable workspaces.
Chase Garbarino, Co-Founder and CEO of HqO, highlighted the urgency for CRE leaders to focus on creating high-quality real estate experiences to navigate the current economic challenges.
“The industry is on a knife’s edge, with high vacancy rates and a clear demand for quality workspaces. Our report provides a roadmap for understanding and leveraging end-user preferences to create spaces that not only attract but retain tenants by meeting their deep-seated needs for comfort and sustainability,” said Garbarino.
The findings indicate a crucial shift towards sustainability, echoing Deloitte's research that 69 percent of employees expect companies to prioritize sustainable efforts.
This marks sustainability as a critical factor for businesses to address, not just as a “nice to have” but as an essential aspect of their operations.
Furthermore, the report uncovers the top five office essentials according to global employees: a good desk, a comfortable chair, access to refreshments, a high level of cleanliness, and temperature control. These elements are foundational to creating a stable and reliable work environment that meets employee demands.
Garbarino adds, “Our data-driven approach underscores the necessity of focusing on the real estate experience from a customer-centric perspective. By understanding and optimizing these experiences, businesses can make informed decisions that not only enhance the workspace but also drive significant business outcomes, including tenant retention and operational efficiency.”
The 2024 State of REX report, generated from HqO’s Intelligence product suite, aims to guide the CRE industry towards a more connected, sustainable, and productive future by leveraging comprehensive feedback from over 1.8 million employees across 8,000 workspaces over the last decade.
