From Fixed to Flexible: How Agile Workspaces are Redefining CRE Legal Strategies
A conversation with Sarah Chen on Navigating Office Consolidation and Hybrid Work Realities
By Robert Kroon
We were struggling with underutilized office space, rigid lease terms, and a lack of responsiveness to changing business needs, particularly post-M&A. The sudden shift to hybrid work only exacerbated these issues.
August Berres: Sarah, thank you for joining us. To start, can you tell us about your role and the challenges your team faced before adopting Agile Workplace tactics?
Sarah Chen: Certainly. I'm the lead corporate real estate attorney for a large multinational company. My team handles everything from lease negotiations and acquisitions to space management and compliance. Before the pandemic and subsequent shifts in work models, we operated in a very traditional, fixed-space environment. We were struggling with underutilized office space, rigid lease terms, and a lack of responsiveness to changing business needs, particularly post-M&A. The sudden shift to hybrid work only exacerbated these issues.
August Berres: What prompted you to consider Agile Workplace strategies?
Sarah Chen: It was a confluence of factors. First, the financial pressures were immense. We were paying for vast amounts of unused space. Second, we recognized the need to support our evolving workforce. Many employees preferred hybrid or fully remote arrangements, and we needed to adapt to retain talent. Third, we were integrating a newly acquired company, which brought its own set of real estate challenges and required a flexible approach to space allocation. Finally, we were seeing an increase in the need for short term project space, and our traditional leases were not conducive to that.
August Berres: Can you describe some of the specific Agile Workplace tactics you implemented?
Sarah Chen: We focused on several key areas. First, we renegotiated leases to include more flexible terms, such as shorter durations, break clauses, and options for expansion or contraction. We also transitioned to a mix of owned and leased spaces, strategically using co-working spaces or serviced offices for temporary or project-based needs. We also implemented hot-desking and activity-based working within our owned spaces, which allowed for a much more efficient use of the space.
August Berres: How did you address the legal and compliance aspects of this transition?
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Sarah Chen: This was a critical part of our work. We had to ensure that all changes complied with local regulations, labor laws, and data privacy requirements. For example, when implementing hot-desking, we had to consider issues like data security and employee privacy. We also meticulously reviewed and updated our lease agreements to reflect the new flexible arrangements. We also had to address intellectual property concerns as people worked in different locations.
August Berres: What were some of the biggest challenges you encountered during the transition?
Sarah Chen: Change management posed a significant challenge. There was initial resistance from some employees and managers who were used to traditional office setups. It was essential to educate them about the benefits of agility and address their concerns. Another challenge was accurately forecasting space needs in a dynamic environment. We needed to develop robust data analytics and scenario planning tools to make informed decisions. Additionally, ensuring that all our legal documents were updated to reflect the new way of working was time-consuming.
August Berres: How did you measure the success of your Agile Workplace initiatives?
Sarah Chen: We tracked several key metrics, including cost savings from reduced space utilization, employee satisfaction surveys related to workspace flexibility, and the speed and efficiency of integrating new teams or projects. We also measured the reduction in legal risks associated with outdated leases and compliance issues. Ultimately, we saw significant cost reductions, improved employee morale, and greater agility in responding to business changes.
August Berres: What advice would you give to other corporate real estate professionals considering adopting Agile Workplace tactics?
My main advice would be to embrace flexibility and be prepared for constant adaptation.
Sarah Chen: My primary advice is to embrace flexibility and stay ready for continuous adaptation. Begin by performing a comprehensive assessment of your current real estate portfolio and pinpoint areas that need improvement. Collaborate with stakeholders across the organization to grasp their needs and concerns. Invest in technology that facilitates flexible work arrangements and data-driven decision-making. Most importantly, prioritize legal and compliance from the very beginning. Don't hesitate to experiment and refine your approach as you progress.
August Berres: Sarah, thank you for sharing your insights. It's clear that Agile Workplace strategies can provide significant benefits in today's dynamic business landscape.
Sarah Chen: You're welcome. It's been a pleasure.
