While AI tools within Proptech are transforming workplace efficiency, a new, non-digital “wildcard” is rising as a key element for innovation. This human-focused factor stands out amid the data-driven, structured nature of modern operations.
JLL’s Future of Work 2024: Driving Value Through Corporate Real Estate report outlines the upcoming trends in commercial real estate (CRE), with a growing focus on ‘experience enhancers.’ According to the report, 70% of CRE leaders in Asia Pacific expect increased investments in areas like hospitality services, employee experience, and space design. This shift reflects a larger emphasis on creating more dynamic, engaging workspaces.
This trend is already visible at JLL, where the company has integrated hospitality elements into its own office. At their Sydney office on 180 George Street, a concierge service and a barista providing a steady stream of coffee help create a welcoming and innovative work environment.
Dan Kernaghan, JLL’s CEO for Australia and New Zealand, emphasized that while technology is central to modern business, their office design is focused on creating spaces that promote spontaneous, organic interaction and innovative thinking.
JLL’s focus is not just on creating welcoming spaces for formal meetings but also fostering environments that promote informal interactions among employees. The goal is to encourage spontaneous moments that can lead to unexpected collaborations and innovative ideas.
While proptech is key to driving operational excellence, true innovation often stems from the human elements of inspiration and teamwork.
Mr. Kernaghan explains that the barista station is an example of this concept in action. A brief wait for coffee may seem trivial, but it can spark an unplanned conversation that ignites new ideas and innovations within the company.
According to Andrew Ballantyne, Head of Research at JLL – Australia, the Future of Work research strongly underscores the importance of the office environment to most businesses. A significant finding showed that 85% of organizations require their employees to work from the office at least three days a week.
Moreover, 55% of Australian companies foresee an increase in the number of in-office days by 2030. In Australia, these findings indicate a growing acknowledgment that physical proximity plays a significant role in fostering collaboration and innovation. Evidence suggests that without regular in-person interaction, innovation tends to decline in the Australian context.
Drawing on the thoughts of 19th-century economist Alfred Marshall, it was noted that physical proximity creates an environment where ideas are swiftly exchanged and refined.
JLL observes a continued shift in aligning office spaces with employee needs, emphasizing the coexistence of diverse workstyles and flexible work arrangements. According to a recent survey, 60% of CRE leaders in Asia Pacific have implemented well-defined programs to provide spaces and technologies that support seamless collaboration between onsite and remote workers.
In another report, the Global Occupancy Planning Benchmarking 2024 survey, JLL found a growing demand for more workspace options. In Asia Pacific, 36% of businesses have increased their small meeting rooms, 36% have expanded focus rooms, and 31% have added more collaboration spaces to meet employee needs.
JLL’s Director of Workplace Strategy, Sonya Alexander, highlighted a key finding from the Future of Work report: the increasing reliance on AI and technology to enhance workplaces. While acknowledging the growing role of proptech and AI in advancing the business landscape, Alexander emphasized that these tools primarily serve transactional functions.
She stressed the importance of fostering authentic workplace networks and connections. Informal interactions, such as casual conversations and idea-sharing, can spark innovation and create valuable opportunities. These moments, she noted, are often unplanned and unstructured. However, corporate leaders can create environments that naturally encourage these spontaneous exchanges.
Ultimately, Alexander believes that the power of innovation often lies in these serendipitous moments, where a simple interaction can lead to a groundbreaking idea or new opportunity.
