The podcast discusses the challenges and opportunities of hybrid working on office space, transportation, retail, and restaurants. It explores the importance of connecting virtual access with physical infrastructure networks and showcases revitalization efforts in Chicago. The potential impact of remote work on the balance between cities and regions is examined, along with the implications of AI on the office environment and job market.
The shift towards hybrid working and the decrease in demand for office space has significant implications for building owners, cities, transportation, and the economy.
The future of cities involves more agility in the use of downtown areas, driven not only by work but also by events, requiring operational focus in infrastructure planning and accommodating variable usage patterns.
Deep dives
Shift towards hybrid working and decrease in office space demand
The podcast episode discusses the shift towards hybrid working and the decrease in demand for office space. With the rise of remote work, more people are opting for hybrid working arrangements rather than the traditional Monday to Friday commutes to the office. This shift has significant implications for building owners, cities, transportation, and the economy that office workers generate. The way downtown areas are used will become more agile, with some days experiencing high activity and others being less busy. This change in work patterns poses challenges in determining the appropriate base load of office space required and affects various sectors of the economy that support office workers.
Global impact and varying responses to changing work patterns
While the impact of changing work patterns varies across different regions, the podcast episode highlights that this shift is a global phenomenon. Large coastal cities in the US have been heavily impacted, while Asian cities like Japan exhibit stronger office sectors. European cities fall within the middle range. The ability for individuals to work remotely depends on factors such as the availability of home office spaces and strong internet connections. Areas with such amenities experience a stronger return to the office. Businesses are adapting to these changes by considering the right amount of office space needed, renewing leases with shorter terms, and implementing hybrid work schedules.
Challenges, opportunities, and future changes in cities and infrastructure
The podcast episode explores the challenges and opportunities that arise from the changing work landscape. One challenge is determining the balance of office space occupancy and meeting the real estate needs of businesses as they align with their strategies. The concept of zombie buildings, which are half-empty office buildings, is discussed, highlighting the need for coordinated efforts to revitalize and repurpose such buildings. The future of cities involves more agility in the use of downtown areas, driven not only by work but also by events. This dynamic shift requires operational focus in infrastructure planning, accommodating variable usage patterns, integrating different modes of transportation, and fostering connections between people and opportunities in a changing work environment.
Downtowns were built for a 9-5 world that no longer exists. Santiago Ferrer, BCG’s North American lead for cities, real estate, and infrastructure development, says civic leaders have an opportunity and responsibility to rethink the best use of buildings, transportation systems, and other infrastructure.