Work has changed. The workplace really hasn't. Until now.
Isolated, commercial real estate suffers from great fluctuation in needed capacity. In the course of a week, buildings change from empty to overfilled, forcing companies to rent more fixed office space to handle peak utilization or suffer crowded offices.
Combined, however, there is a surplus of space. It is estimated that 50% of all commercial real estate is vacant or unused at any given time. Because this space is not available for anyone else, it is necessary to continue constructing new buildings to meet market demand.
According to the IEA and UNEP, buildings account for more than one-third of energy use and CO2 emissions worldwide.
The World Economic Forum forecasts that 540 million square meters of new office space will be required by 2030.
An astounding 50% of all office space is estimated to be vacant or unused at every given time.
In the 18 and 1900s, factories defined the centralized workplace. The dependence on machines, materials and assembly lines required workers to all show up at the same location at the same time.
Since then, the world has changed, but the centralized workplace has pretty much stayed the same. Companies continue to build big headquarters, increasingly misaligned with the reality of modern work.
Despite measures like free seating and clean desk policies, the physical building's limitations are inevitable, and the traditional headquarter tend always to be suffering from either overcapacity or undercapacity.
The average worker in US and UK spends 200 hours commuting every year. Longer commutes are pushing the home prices in cities up, forcing people to move farther from the city, increasing the commutes every year.
The new generation of workers expects more freedom and variation in their work as everything becomes more digital. The result is a growing need for different types of workspaces, and the traditional office falls short.