When is it better for organisations to own or access future workspace services ?   

Are efficiency benefits offered by cooperativism in the sharing economy model better aligned to start-ups and flex workspaces where exclusive possession offer little value add ?

Are bespoke managed office solutions crafted with building owner a lower risk solution to traditional serviced office / co-working operators ?

What are the most important factors tilting the argument for you ? .. fluctuations in space usage, term duration uncertainty, exclusion possession, brand/design control, community amenities, fit-out and management hassle ...  

All contributions welcome! 

1. Purpose sets priorities  (enables rapid change in focus from multiple competing priorities to most critical objectives)

2. A flattened cross-functional structure focused on outcomes  (moving from traditional hierarchies to decentralising cross-functional teams organised around outcomes / specific tasks)

3. People are reallocated, reskilled, and reenergized  (coupling new virtual training programs with new technology and tools to empower employees and make organization more nimble)

4. Propel technology to the front lines (providing greater latitude whilst also creating new dashboard of leading indicators)

Favourite quote - "Remote work itself is the tip of the iceberg. Spurred by their experience during the COVID-19 crisis, more and more companies are shifting their people model to one that values skills-based mobility and contributions instead of location-based work and standard functional expectations."

Expect corporate real estate executives could re-write above observations as follows - 

1. Purpose makes space.

2. Decentralising can improve cross-functional service collaboration.

3. Build transferrable skills within support service teams.

4. Invest in tomorrow's proptech and performance metrics today.

How COVID-19 is redefining the next-normal operating model (McKinsey Article published December 2020).pdf

Stores still matter when it comes to online groceries | Financial Times (ft.com)

Key Takeaways -

Whilst online grocery spending has surged during pandemic,  profiting from additional revenue is proving a challenge.

"Bain estimates companies that use staff to fill online orders in a store and deliver them lose between 10 and 15 per cent on every order, depending on the delivery fees."

The most cost-effective method to deliver online orders is to leverage "smaller, automated warehouses, often attached to a store". 

J Sainsbury, the UK’s second largest grocer, last week announced plans to close its London online fulfilment centre and plans to upgrading online departments in more than 20 London-area store in order to "cut delivery distances and share staff and inventory costs" and "shift to a lower cost model".

What do you think? ... are decentralised mini / micro fulfilment centres more efficient ? ...  what criteria should be used by retail tenants to determine optimal locations ?