A reversal has occurred where 3rd party commercial real estate experts are only now learning how the workplace operates in a post-COVID world.

I have had the pleasure of sitting through A LOT of workplace technology demos that claim they are able to solve the problem of hybrid working and the office. Typically, within 10 minutes of the start of the demo they prove that they have not had to deal with the real-world issues that come from managing space in a post-pandemic world. Before the pandemic, 3rd parties were able to pick up the realities of operations over years and decades of doing projects or because they came from an operational role. Unfortunately, that past experience no longer fits how things work.

In real estate, our 3rd party partners are often seen as part of the team because they are integral to our ability to deliver projects. Because of the variability associated with project delivery, it is not possible to have internal teams do all of the planning or delivery work. Companies therefore have varying degrees of relationships associated with that delivery.

The growing challenge is that those 3rd party partners do not have the experience necessary in the new world. I have seen workplace strategies implying the need for more square footage instead of less. I have seen badge studies that do not understand that peak days are not the same now as they used to be. I have witnessed change management that does not have empathy for colleagues who do not work as they used to. I have heard of brokers who try to guide real estate decisions counter to both market conditions and the interests of their clients. None of these were because they were intentionally doing something negative. In every case, they thought they were being helpful and productive through their actions. Unfortunately, their actions were driven by a pre-2020 understanding of how real estate is used.

A terrifying reversal has occurred where the in-house real estate teams, who are reliant on their 3rd party partners, find themselves teaching their partners new concepts on the fly and needing to triple-check things that they have never needed to worry about before. It adds tension to already challenging processes. Part of the struggle is that the internal team often does not realize that their expert’s expertise may not be at the same level it used to be because their experience does not match the world now.

For those 3rd parties, your roles are more important than ever. The world has changed so much that expertise is at a premium, but only if it has incorporated the new realities that corporate teams are dealing with. Being articulate about peak and average occupancy actual behaviors in your markets is crucial, and it cannot be “oh yeah, people are back now”. Understand the short and mid-term uncertainty that may drive decisions now that would have been long-term decisions just two years ago. Be open to the fact that Facilities Services teams may understand real estate in a country better than the Strategy teams that have not dealt with that market in 3 years. Ask questions and doubt your own expertise until proven right again.

The worst-case scenario for both parties is relying on out-of-date approaches leads to workplaces that are completely unfit for purpose which calls the entire process into doubt. It can be very easy to go about our day-to-day and only realize the problems once it is too late.