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Company Culture is Not Built Virtually

Company culture is not built virtually

I believe there will be long-term impacts on company culture, especially for the younger generation moving into the workforce. The newer generations are now becoming the majority in the workplace. Even if it has been some time, can you still recall running into coworkers in the corridor and catching up with them about weekend plans or a significant project you were working on? Do you have any memories of being in the right location at the right moment, providing a person with the knowledge they were lacking, or inviting a colleague to a lunch meeting or event they could benefit from? Like many others, you might not have appreciated the significance of these discussions until you started working from home. Over 50 studies have been conducted this year by Microsoft teams to investigate how the nature of work has evolved since early 2020. This endeavor includes a study of billions of productivity signals such as emails, meetings, chats, and postings across Microsoft and LinkedIn’s user bases. Additionally, a poll of over 30,000 persons who were located in 31 different nations is included. Basically,  this study found that employees feel more connected to their colleagues in the office and completely disconnected when working virtually. 

 

  • Difficulty in Building Genuine Relationships with Colleagues

Collaboration, creative problem-solving, mentorship, and team morale is more challenging when each requires a Microsoft Teams or Zoom invite to do so. According to a study done by Stanford 67% of workers are distracted during virtual meetings. · 47% of people prefer in-person meetings.

 

  • Frequent Interruptions and Unsupervised Performance 

Self-regulation and focus can be difficult for most without having the accountability of your team around you like in an office. 55% of workers admit to checking their email during virtual meetings according to a study done by Standford. 

 

  • Lack of Motivation When There’s No Comradery

When you are surrounded by people who share the same vision and purpose it is the comradery that keeps each of us motivated and feeling supported when you are having an off day or dealing with a difficult project/situation.

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Relationships Are Built In Person

I believe there will be long-term impacts on company culture both now and long term. The newer generations are now becoming the majority in the workplace. Ultimately people will lose out on promotion opportunities, and networking opportunities and businesses will see a loss of productivity returning back to the office.

Three Main Areas:

 

  1. Lack of Motivation When There’s No Camaraderie

When you are surrounded by people who share the same vision and purpose it is the camaraderie that keeps each of us motivated and feeling supported when you are having an off day or dealing with a difficult project/situation. When one is placed in the wrong situation at the wrong moment, it may be simple to lose motivation rapidly. It increases the likelihood of not obtaining the anticipated business goals. External inspiration may come from many different places. Working in an office with coworkers who share a vision or purpose, or getting advice from a senior employee, are two excellent examples. The atmosphere is different when working from home.  An employee’s life might become tough due to a lack of motivation, which can also have a negative impact on production. Although self-motivation might be effective in some situations, it is not always sufficient to keep going. According to Forbes “ job satisfaction and job motivation have also fallen—job satisfaction from 57 percent to 32 percent and job motivation from 56 percent to 36 percent.”

 

  1. Frequent Interruptions and Unsupervised Performance

Self-regulation and focus can be difficult for most without having the accountability of your team around you like in an office.  Having children, a roommate, or a partner at home could lead to more breaks than usual. Employees are expected to monitor their own performance at work as part of their duty. Self-control, focus, and diligence are skills not everyone has to self-manage and effectively time manage. If the breaks and work are not tracked, employees could become distracted which lead to longer breaks and less work time. Studies from The New York Times show “that the average worker is interrupted somewhere between 4 to 12 times every hour. That’s one interruption every 15 minutes, in the best-case scenario.”

 

  1. Lack of Relationship with Colleagues

Collaboration, creative problem-solving, mentorship, and team morale are more challenging when each requires a Microsoft Teams or Zoom invite to do so.

When asked why people continue to work for their company, respondents frequently say their colleagues.  According to the Pew Research center “60% of people say they feel less connected to their co-workers now”. People we collaborate with play a significant role in our network. We gain so much from our colleagues’ knowledge and insight, as well as our boss’s seasoning and sense of humor. While it is possible to maintain relationships online, they are often not as deep or genuine. Your network is most certainly diminishing as well. There are individuals you haven’t seen in a long time because you didn’t know them well enough to send them a text. While you may meet someone digitally, it’s not the same as interacting with them in person. You’re passing up an opportunity to meet for coffee and make a genuine connection.

Of course, working in an office isn’t perfect. However, neither is working from home. Choosing your workspace and working style with the best interests of your team and your business in mind is always the goal.

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What To Do When Facing Difficulty Forecasting Your Office Space Needs:

Finding a home for your team is important because, in both business and real estate, location is everything. In addition to selecting a suitable location, it is critical to select the proper building for your business. You could locate a fantastic small space for rent on a busy street, but what if the structure itself isn’t suitable for your company or its clients who visit? That’s why there are 5 important steps to consider before finding your perfect office space:

 

Find A Tenant Representative

Choosing the right Tenant Representative is one of the most critical decisions you’ll make when it comes time to leasing. A competent agent will assist you in navigating the leasing process to increase efficiency, leverage their market knowledge for your benefit, and ensure you are equally represented, just like the Landlord is represented by their Listing Agent. As the market ebbs and flows, there can be different nuances and market trends only a commercial agent, who is in the space day in and day out, is aware of. 

 

Budget

First understanding what your budget is will determine what Submarket in Tampa you can evaluate. Our highest price per square foot markets in Tampa are located in Westshore and Downtown Tampa. Knowing your budget will save time from considering office space. Understanding the three different types of lease structures is very important so you can understand what is included in the monthly rents you are reviewing. Read more about the three different types of leases here.

 

Location

Budget can determine location since each submarket’s rental rates are different. Downtown Tampa and Westshore rents are drastically different than Carrollwood or Wesley Chapel. Location can also be determined by where your employees are located and if clients are coming to your office.

A few questions to consider:

  • Where are the majority of employees commuting from? Where are you focusing on for hiring?
  • Do you want to be close to major highways for ease of access for employees and clients? 
  • What is the culture of your office? For example, if the majority of your employees live in Downtown Tampa and part of the culture is walking or biking to the office and taking advantage of the Tampa Riverwalk, restaurants and bars moving or keeping your office in this location is part of your company culture. Being in a location where employees desire to be or already live can bring an overall sense of satisfaction.

 

What Kind of Layout Do do You Need For Your Team To Thrive?

Was your office previously all remote and scaling folks back into the office? Determining if you will continue a flex office schedule can minimize the amount of space you need. A “flex office schedule” means you have folks coming into the office and on different days and evenings designing your office space where there are “hot seats” where different people are using the same workstations for offices. 

  • Do key people need offices vs workstations?
  • Are our individual flex rooms needed for Zooms calls or phone calls?
  • Are our smaller meeting spaces required for team break-out meetings?
  • Do you want to create spaces for your team to naturally collaborate?
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What Are Spec Suites?  

 


What Are Spec Suites?  

Speculative Suites is an office space designed to demonstrate to prospective renters what the office space may look like. While the finer specifics of what exactly makes a spec suite differ from each Landlord, at its most basic level, a spec suite is a place where the Landlord has invested construction expenditures ahead of time to have the room in move-in ready shape by creating an effective layout for the space, paint, and floors based on current market trends.

 

Who Are Spec Suites For:

Small to mid-sized Tenants with standard office space requirements are best served by spec suites. They’re especially appealing to Tenants who need to move in quickly, generally within three months or less since the office space is in a move-in ready condition.

 

Benefits of Spec Suites:

One of the main advantages of leasing a spec suite is that it reduces your out-of-pocket expenditures for building and finishing. Furniture and construction costs have been steadily rising, making new office development prohibitively expensive. Spec Suites are usually furnished and ready to move in, allowing Tenants to enjoy new, high-quality furnishings without having to pay for them out of pocket. 

For firms who need to be in their new office fast, Spec Suites might be a terrific solution. Depending on the extent of construction required, a new office build-out might take anywhere from 2 to 8 months to complete. The period between signing a lease and moving in can be greatly reduced with Spec Suites. Landlords create select “spec suites” to provide move-in ready options for Tenants who have a quick time frame to occupy quickly. Delayed permits have recently played a role in having quick occupancy options. Some companies are waiting to make a decision (due to uncertainty in their business) having an easy option can give Landlords a competitive advantage to win the deal.

 

Downfalls Of Spec Suites:

A downside of spec suites is the lack of control over the space’s appearance and feel. The Landlord has already chosen the spec suite’s design and finishing and typically may not invest additional money into the space unless the Tenant is willing to cover the cost of signing a longer lease.

 

 

A Tenant Representation Broker can walk you through if a spec suite is a right solution for you. Give Office Space Brokers a call at 813-289-3700.

 

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4th Quarter 2021 Tampa Bay Office Market Report and 2022 Forecast

Important Highlights:

Tampa Bay:

  • Office space leasing has been increasing rapidly close to what it was pre-pandemic 
  • The unemployment rate in Tampa Bay decreased to 4.9 % in December of 2021 and is expected to decrease even more in 2022
  • Average direct asking rentals are up .5 percent from last quarter, soon to be back at pre-pandemic rates
  • Rent is up 28% in the Tampa Bay Area 

Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent-All Classes Overall Asking Rent Class A
Westshore $33.43 Sq. Ft.  $28.04 Sq. Ft. 
Downtown Tampa $40.56 Sq. Ft.  $47.89 Sq. Ft. 
Northwest Tampa $24.01 Sq. Ft.  $28.92 Sq. Ft. 
South Tampa $23.33 Sq. Ft.  N/A
I-75 Corridor $ 24.88 Sq. Ft.  $28.23 Sq. Ft. 
Downtown St. Petersburg $31.45 Sq. Ft.  $32.77 Sq. Ft. 

2022 1st Quarter Forecast: 

  • Confidence in the Tampa Bay market is high, going into the last quarter of 2022 amid sustained new-to-market tenancy.
  • Tenants will proceed to bring their teams back to the office more so in 2022
  • By 2022 remaining new construction space with many buildings is expected to be over 60% leased. 

What does this mean for Tenants?

  •  Managing market expectations in key areas where office vacancies are higher than in Tampa Bay. Due to lower vacancy rates than key markets such as New York and Los Angeles, landlords in Tampa Bay are not as driven to replace vacancies as they are in other areas of the country.
  • Use available sublease space to take advantage of the market conditions we do have, which can give more reasonable rates, shorter terms, and any available furnishings.

What does this mean for Landlords?

  • To acquire a competitive advantage against Landlords who retain their face rates, evaluate concessions for tenants by changing asking rents and increasing Tenant Improvement Allowances. 
  • Make lease terms more flexible. 
  • Expect a surge of new products to hit the market. Tenants from other states are growing or migrating to Tampa. 
  • Start marketing available space 6 with a longer lead time for office space that will become available in the near future.