New data suggests companies are rethinking the role of commercial real estate within their corporate structures. Twenty-nine percent of companies that have recently changed their CRE reporting structures indicate that their teams now report into human resources departments, according to a Cushman & Wakefield Behind the Numbers analysis with David Smith, head of Americas insights at the firm.
More CRE teams now report to HR than to finance, corporate services or operations departments, signaling a shift in how companies view the role of the workplace, according to Smith. Aligning CRE with HR demonstrates a commitment to prioritizing people, culture and the employee experience. Office space is increasingly seen as a strategic tool to enable productivity, engagement, well-being, connection and overall performance. This is particularly significant for companies trying to attract and retain talent in a hybrid work environment, Smith noted.
Many companies continue to rely on traditional financial metrics to assess the effectiveness of their CRE assets, however. These metrics overlook non-financial measures such as morale, engagement and business outcomes, said Smith.
Recommended For You
“It's a little bit like measuring morale with a calculator,” he explained.
Companies have an opportunity to develop cross-functional metrics that align real estate decisions with a wider range of business objectives beyond cost reduction.
“Office space isn't just about managing square footage or cutting costs anymore,” said Smith. “It's about enabling people to do their best work, supporting not just how they work, but how they feel, connect and thrive. It's about being in an environment that's intentionally designed to elevate their experience and performance.”
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
