EVENT RECAP: PERSPECTIVES ON REOPENING
May 19, 2020
TUESDAY, MAY 12, 2020 | ZOOM MEETING
JIM TIERNEY, New England Market Director, Julia Georgules DiRECTOR OF RESEARCH, & MATT DANIELS New England Brokerage Lead
On Monday, May 12, Rick Dimino, President & CEO of A Better City, welcomed Jim Tierney of JLL to introduce a discussion of how the reopening of the workplace might work. Jim introduced JLL colleagues Matt Daniels and Julia Georgules to present insights on the reopening process. Fifty participants joined in the Zoom session.
Jim said that JLL is responsible for 25 million square feet of space in the Boston area both as property manager and as tenant representatives. The key message is that there is not a one size fits all plan for reopening the workplace. Plans will vary with types of building, location, along with other factors.
Matt Daniels describes some of the differences between downtown office towers and suburban locations are employees are less dependent on public transportation, stairs are often used rather than elevators, and where the roof is easily accessible for enhancements for HVAC equipment. He described recent trends for more dense office use, with average square footage per person declining from 200 SF to 140 SF. That increased density is not able to support physical distancing that may be necessary in a healthful pandemic world. Landlords and tenants will have different responsibilities, for instance, who will conduct temperature checks in lobbies or at the entry? While organizations have quickly adapted to remote work, it will not be a permanent solution. The culture of an organization is not easily transmitted via Zoom.
An example of a tenant that is experiencing change is WeWork where two types of users occupy space: co-work and space for office tenants to expand for a short term. The space needed to provide a safe and healthy work environment needs to be determined.
Julia Georgules is responsible for research for JLL and is looking at data to provide some answers. She listed industries that are suffering such as dining and travel, those at risk including legal and financial service, and those well-positioned to see a positive impact of the situation like the biotech industry. Innovators using 3D printers to fabricate new products will also do well. No matter what the industry differences, she said, we are all in this together.
Concerns have been raised about the commute, keeping common areas clean, employees coming in sick, and close proximity of workspaces.
In recent years, Ms. Georgules continued, the trend toward denser workspaces has been reversing and lower density will be important for physical distancing, but it can be phased in gradually. Flexibility will also be important in addressing concerns. Not all employees will need to be in one location, with some working remotely at home. Co-working may decline. There will be a greater focus on health and safety, monitoring temperatures, wearing masks, and such. There is some question about landlords will do for tenants. There will be emphasis on collaboration and how employees can come together to share ideas as people are working in different locations. Research, she said, needs to continue on how to best achieve these ends. We will all learn together.
Much discussion followed the presentations concerning support for working at home, timing for reentering the workplace, prospects for retail uses, how conference rooms will be used, and many more questions. Mr. Daniels suggested not to have any expectations, because things will change.
Ms. Georgules suggested that Massachusetts has a better grip on widespread testing that other places, but healthy buildings will be a priority for some time to come. New techniques will be developed for activities like taking temperatures, and responsibilities of tenants and landlords will need to be sorted out.
Mr. Daniels does not anticipate seeing more additional office space under construction for a while as most new construction in Boston already has tenants committed, with little construction done here on spec. The floor plates for offices do not lend themselves to conversion for housing.
In closing, Mr. Daniels said that each landlord will have his or her own pitfalls. Managing safe lobbies and the use of elevators will be the first gateway for entry to their tenants’ spaces.
