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Flevy Management Insights Q&A
How can Facilities Management and Real Estate teams collaborate to optimize workspace design for hybrid work models?


This article provides a detailed response to: How can Facilities Management and Real Estate teams collaborate to optimize workspace design for hybrid work models? For a comprehensive understanding of Facilities Management, we also include relevant case studies for further reading and links to Facilities Management best practice resources.

TLDR Facilities Management and Real Estate teams must collaborate on Strategic Planning, optimize space utilization, and invest in technology to support hybrid work models, focusing on flexibility, efficiency, and employee well-being.

Reading time: 4 minutes


Facilities Management (FM) and Real Estate (RE) teams play pivotal roles in shaping the future of workspaces, especially in the context of hybrid work models. The collaboration between these two functions is essential in optimizing workspace design to support flexibility, efficiency, and employee well-being. This synergy can lead to the creation of spaces that not only meet the current needs of employees but are also adaptable to future changes in work patterns.

Understanding Hybrid Work Models

The hybrid work model combines remote work with office-based work, allowing employees to split their time between working from home and the office. This model has gained popularity, particularly in the wake of the global pandemic, as organizations seek to offer more flexibility to their employees. A report by Gartner highlighted that 82% of company leaders plan to allow employees to work remotely some of the time. This shift necessitates a reevaluation of space utilization, office design, and real estate strategy to accommodate a fluid workforce while optimizing operational costs.

Facilities Management and Real Estate teams must work together to understand the specific needs of their organization's hybrid work model. This involves analyzing workforce data, employee preferences, and job functions to determine the amount and type of space required. It also means considering how spaces can be designed to support both concentrated individual work and collaborative activities, which are essential components of the hybrid model.

Strategic Planning is crucial in this phase. FM and RE teams should develop a flexible workspace strategy that aligns with the organization's overall objectives. This could involve transforming existing spaces into more versatile environments, investing in technology that supports hybrid work, or downsizing the physical footprint to reflect reduced on-site headcount while reallocating resources to create more meaningful and productive workspaces.

Learn more about Real Estate Hybrid Work Remote Work

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Optimizing Space Utilization and Design

Optimizing space utilization is a key area where Facilities Management and Real Estate teams can collaborate effectively. With the fluctuating occupancy levels inherent in hybrid models, understanding how to make the best use of space becomes paramount. This might involve introducing hot-desking systems, creating more collaborative spaces, and incorporating flexibility into the design to easily reconfigure spaces based on current needs. Technology plays a vital role here, with tools for managing space bookings and analyzing usage patterns helping to inform decision-making.

Designing for flexibility also means considering the employee experience. Workspaces should be designed to support different types of work—from focused, individual tasks to team meetings and social interactions. This can include quiet zones, phone booths, meeting rooms of various sizes, and open areas for informal gatherings. The aim is to create an environment that supports productivity, creativity, and well-being, regardless of where an employee chooses to work on any given day.

Real-world examples of organizations successfully implementing these strategies include Google and Salesforce, which have redesigned their offices to support hybrid work. These companies have introduced more collaborative spaces, technology-enabled meeting rooms, and flexible workstations to accommodate the changing needs of their workforce. Such initiatives not only optimize space utilization but also contribute to a culture that values flexibility, innovation, and employee well-being.

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Investing in Technology and Infrastructure

Technology is a cornerstone of effective hybrid work models. Facilities Management and Real Estate teams must collaborate to identify and invest in the right technology and infrastructure to support hybrid working. This includes robust IT systems for seamless remote work, advanced booking systems for workspaces and meeting rooms, and technology that supports collaboration and communication between in-office and remote employees.

Moreover, the infrastructure must support a high degree of digitalization. For instance, sensors and IoT devices can track space usage and environmental conditions, providing data that can be used to optimize energy consumption, improve space utilization, and enhance the employee experience. According to a report by Deloitte, organizations that leverage smart building technologies can see significant improvements in operational efficiency, employee productivity, and even talent attraction and retention.

Ensuring that technology investments align with the needs of the workforce is critical. This means not only deploying the right tools but also providing training and support to ensure that employees can make the most of the hybrid work environment. By doing so, Facilities Management and Real Estate teams can create a workspace that is not only efficient and flexible but also conducive to innovation and growth.

In conclusion, the collaboration between Facilities Management and Real Estate teams is crucial in optimizing workspace design for hybrid work models. By understanding the dynamics of hybrid work, optimizing space utilization and design, and investing in the right technology and infrastructure, organizations can create work environments that support flexibility, efficiency, and employee well-being. This holistic approach not only meets the immediate needs of the workforce but also positions the organization for future success in an ever-evolving work landscape.

Best Practices in Facilities Management

Here are best practices relevant to Facilities Management from the Flevy Marketplace. View all our Facilities Management materials here.

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Explore all of our best practices in: Facilities Management

Facilities Management Case Studies

For a practical understanding of Facilities Management, take a look at these case studies.

Strategic Facilities Management for Industrial Packaging Leader

Scenario: A leading industrial packaging firm in North America is facing operational inefficiencies in its facilities management.

Read Full Case Study

Facilities Management Streamlining for Ecommerce in Competitive Landscape

Scenario: The organization in question operates within the ecommerce sector, catering to an increasingly demanding consumer base.

Read Full Case Study

Space Technology Facility Management for Commercial Lodging

Scenario: The organization in question operates within the commercial lodging sector of the space technology industry, striving to maintain and enhance the guest experience in an environment characterized by extreme conditions and high expectations for safety and comfort.

Read Full Case Study

Stadium Facilities Optimization for a Premier Sports Franchise

Scenario: A leading sports franchise is facing operational inefficiencies within its stadium facilities management.

Read Full Case Study

Energy Efficiency Enhancement in Hospitality

Scenario: The organization operates a portfolio of hotels across North America and faces rising energy costs that are significantly impacting its bottom line.

Read Full Case Study

Energy Efficiency Enhancement for Power & Utilities Firm

Scenario: The organization operates within the power and utilities sector and is facing increased pressure to reduce operational costs while maintaining high standards of service delivery.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How are predictive analytics and machine learning revolutionizing preventive maintenance in Facility Management?
Predictive analytics and machine learning are revolutionizing Facility Management by enabling proactive preventive maintenance, reducing downtime and costs, and improving asset longevity through data-driven insights. [Read full explanation]
What role does Facility Management play in supporting corporate sustainability and ESG goals?
Facility Management is a strategic enabler of sustainable practices, significantly impacting corporate sustainability and ESG goals through Strategic Integration, Operational Excellence, and Leadership. [Read full explanation]
What are the implications of the shift towards smart buildings and smart cities on the future of Facility Management?
The transition to smart buildings and cities is revolutionizing Facility Management, emphasizing Operational Excellence, Strategic Planning, and Sustainability, while necessitating adaptations in Risk Management and technology integration for improved efficiency, cost savings, and quality of life. [Read full explanation]
What impact will the adoption of blockchain technology have on Facility Management processes and transparency?
Blockchain adoption in Facility Management improves transparency, operational efficiency, cost reduction, and risk management through decentralized, tamper-proof record-keeping and smart contract automation. [Read full explanation]
How can Facility Management contribute to enhancing employee well-being and productivity in the post-pandemic workplace?
Facility Management enhances post-pandemic employee well-being and productivity by prioritizing Health and Safety, adopting Human-Centered Design, and supporting Mental Health and Work-Life Balance. [Read full explanation]
What strategies can be implemented to ensure Facility Management aligns with and supports overall business strategy and objectives?
Implementing Strategic Planning, embracing Digital Transformation, and prioritizing Sustainability within Facility Management are key to aligning FM with organizational objectives, thereby improving Operational Efficiency and supporting long-term goals. [Read full explanation]
What strategies can Facility Management employ to ensure business continuity and resilience in the face of natural disasters?
Facility Management ensures business continuity and resilience through Strategic Planning, technological innovation, and building a Culture of Preparedness, including comprehensive Risk Assessments, leveraging ICT and IoT, and fostering employee readiness. [Read full explanation]
What impact does the rise of remote work have on Facilities Management strategies?
The rise of remote work necessitates a strategic reevaluation in Facilities Management, focusing on flexible space design, Operational Efficiency, Sustainability, and improving Employee Experience to navigate the shift towards hybrid work models. [Read full explanation]
How can Facility Management leverage data analytics to improve operational efficiency and decision-making?
Data analytics in Facility Management improves Operational Efficiency and decision-making by optimizing facility usage, reducing costs, and aligning with sustainability goals through strategic data use and IoT integration. [Read full explanation]
In what ways can Facilities Management drive innovation within an organization?
Facilities Management drives innovation by integrating smart technology, embracing sustainability, and fostering a Culture of Continuous Improvement, enhancing Operational Excellence and Digital Transformation. [Read full explanation]
How are digital twins being utilized in Facility Management to optimize building operations and maintenance?
Digital twins in Facility Management enable proactive maintenance, Operational Excellence, and improved tenant safety through real-time data, predictive analytics, and simulation capabilities. [Read full explanation]
How is the adoption of circular economy principles influencing Facilities Management strategies?
The adoption of circular economy principles is reshaping Facilities Management strategies by emphasizing sustainability, resource efficiency, and innovation, leading to enhanced operational efficiency and economic benefits. [Read full explanation]
How can Facility Management practices be tailored to support the mental health and well-being of employees in a post-COVID-19 world?
Facility Management must prioritize Psychological Safety, Health and Wellness, and adapt to New Ways of Working to support employee well-being in the post-COVID-19 era. [Read full explanation]
What are the key strategies for Facility Management to effectively manage and mitigate cybersecurity risks in smart buildings?
Effective cybersecurity in smart buildings requires a strategic approach integrating Comprehensive Risk Assessment, Cybersecurity Measures into FM Operations, and Collaboration and Compliance efforts to mitigate risks. [Read full explanation]
What role will augmented reality (AR) play in the future of Facility Management for training and operations?
Augmented Reality (AR) will significantly improve Facility Management through immersive training, efficient operations and maintenance, and enhanced remote assistance, driving Innovation and Operational Excellence. [Read full explanation]
What are the critical considerations for Facilities Management when navigating the complexities of hybrid work environments?
Facilities Management must strategically manage space, integrate technology, and prioritize health and safety to support hybrid work, focusing on adaptability, employee well-being, and operational efficiency. [Read full explanation]
How can Facilities Management contribute to a company's sustainability goals in a measurable way?
Facilities Management enhances sustainability through Energy Efficiency, Waste Reduction, Sustainable Procurement, and fostering a Culture of Sustainability, driving improvements in environmental, social, and economic performance. [Read full explanation]
In what ways can Facility Management drive cost savings without compromising on quality or employee experience?
Facility Management can achieve cost savings without sacrificing quality or employee experience by focusing on Strategic Planning, leveraging technology, and emphasizing sustainability, enhancing operational efficiency and competitiveness. [Read full explanation]
How is the integration of IoT and AI technologies transforming Facility Management practices?
The integration of IoT and AI is revolutionizing Facility Management by improving Operational Efficiency, Occupant Experience, and enabling informed Strategic Decision-Making and Risk Management, transforming FM into a strategic asset. [Read full explanation]
How can cross-functional collaboration be optimized to enhance Facilities Management outcomes?
Optimizing cross-functional collaboration for Facilities Management involves Strategic Planning, Goal Alignment, enhancing Communication and Collaboration, and leveraging Technology and Data Analytics to achieve integrated, efficient outcomes aligned with broader business objectives. [Read full explanation]

Source: Executive Q&A: Facilities Management Questions, Flevy Management Insights, 2024


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