Buildings are more than just the shiny (or rough and textured) exterior that we see when walking (or driving) by. They are the place where your business functions. It’s where the magic happens. Where your people sit to serve your customers, make your products and build long-term success.
Alright, what is supply and demand in the real estate world? Traditionally, supply is the building and demand is the number of seats you need to fill. But with the pace of change in how real estate is used I’d like to make a slight change in the definitions. Supply is the amount of labor you have in a market. Demand is the desire of those workers to have their own seat.
Let’s have a moment of honesty. When most people take down real estate they have NO idea how much they really need between now and the end of their lease. So why treat real estate as the supply? You have only cursory control over it, no actual control. And once you have it, you have it. Getting rid of it isn’t simple.
What’s the lifeblood of your business? Your people. It’s possible to run your business without real estate, but it’s not possible without people. In the grand scheme with labor being the center, why not put them as the focus of both supply and demand.