Workplace culture, decarbonisation and senior interim hires: a look at property trends for 2024
As 2023 draws to a close, Matt Parkin, Partner – Executive Property at InX shared his views on the property market and where he sees it going in 2024.
The property market has had a tough year, but it has shown signs of opening across H2 2023. Inflation has seen the cost of materials go up, and the share prices of construction companies go down.
Real Estate investment volume is down, with deals harder to do. Some of our clients believe this is down to vendor expectations on the price of commercial property not accounting for a drop in valuations since H1 2022.
On the plus side, asset management has remained busy. Where hybrid working models has seen some occupiers look to reduce their office space, they’re also seeing more value in improving the quality of the space they use.
We spoke to a Managing Director from a leading Global Facilities Management company, who said:
“Post-COVID, the Great Resignation did not have as significant an impact as expected. Office attendance levels Tuesday to Thursday are higher than they were in 2019, and with the exception of some US-based customers, most of our corporate clients see this hybrid structure as the way forward.”
He went on to say that COVID has made it more difficult to recruit and retain staff. At a lower level, furlough saw many cleaners and engineers leave the sector, taking jobs in other industries for more money. Junior staff have missed out on two years of being around more senior colleagues, meaning that learning by osmosis is down, creating skill gaps around some of the people skills that are essential for a relationship-led service.
At a senior level, we have noticed that there’s been less movement of operational leaders at Managing Director level within the sector than there was in 2021 and H1 2022. As their clients move away from multiple one-year extensions, and toward a real estate strategy that is five years or more, our network tells us that this will drive business growth and strategy realignment that lends itself to more strategic senior hires in 2024 and beyond.
Where market uncertainty may have slowed the number of permanent hires, 2023 has been our best year in the senior interim market. The demand for short- or fixed-term hires to oversee a transition period or implement a key transformation project is the highest we have ever seen it.
With corporate occupiers putting more emphasis on the office as a driver of workplace culture – and increased awareness of the need for decarbonisation – there is an opportunity for FM / asset management businesses to charge a premium for a higher-grade workplace experience.
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Whether you’re looking to strengthen your leadership or you’re a senior professional looking to make a real difference for an organisation, get in touch with our Property & Real Estate team to find out how we can help you.