How Commercial Real Estate Leaders Can Meet The Demands Of The Growing Gen-Z Workforce

Kenny Kane is the Chief Operating Officer at Firmspace. 

In a 2021 survey from Commercial Cafe, 45% of Gen Z respondents reported feeling satisfied with their current work-life balance, with 56% bringing increased levels of stress from work home with them.

As the Gen Z worker population grows, these issues become more and more pressing for commercial real estate (CRE) firms. In order to attract tenants and meet the needs of this growing generation, CRE firms must start creating plans to optimize their properties now. 

Fortunately, the measures CRE leaders are taking to augment their spaces for hybrid work often fall in line with the preferences of the Gen Z workforce. Here are three ways CRE firms can align their properties with the needs of this younger generation. 

1. Create the flexible workspaces that Gen Z wants.

Gen Z values flexibility. In fact, it is a key consideration for 52% of them when evaluating job options, with 36% of Gen Z respondents specifically stating they want the freedom to work from anywhere. This preference for flexibility also echoes the broader workforce’s desire for hybrid work.  

What does this mean for CRE leaders? You need to strike the balance between designing collaborative spaces and also spaces for privacy and deep work. As you do so, it’s important not to conflate visibility with flexibility. This means building architecture that fosters privacy. 

Building flexible workspaces means configuring spaces for more human moments, like polishing up a presentation with a coworker or commiserating after a sales call. Even adding something like an alcove can help create the private space professionals look for when they need a moment to collect themselves. Workers, and especially those in Gen Z, want to feel connected with one another. Flexible workspaces can go a long way in facilitating this objective. 

2. Optimize your office with technology designed for the hybrid workplace.

You already know that proptech enables you to automate how your office spaces function and optimize each workspace for its tenants while minimizing the burden on your administrative staff. But have you considered just how much these economies improve the daily experience of your tenants?

As Gen Z's presence in your spaces grows, you'll likely see increased returns on your investment in the tools that allow you to manage climate controls, access controls, occupancy rates and other daily functions.

In the years ahead, proptech can help you coordinate the flexible work schedules Gen Z desires, streamline cloud technologies that can increase visibility and opportunities across your own company, and contribute to any energy conservation initiatives your tenants may prioritize, which is a value Gen Z champions. 

Additional implementation of technology into your properties could include outfitting flexible meeting spaces with video conferencing technologies and high-speed internet. Ultimately, you should aim to provide Gen Z with technology upgrades they may not have access to at home — benefits and amenities that will continue to motivate this group to commute into the office.

3. Design workspaces with occupant wellness in mind.

While Gen Z seems to be the most connected generation with regard to their digital presence, the pandemic has disconnected them a great deal. Forty-three percent of Gen-Z workers admit they get lonely working from home. 

This social disconnection can negatively impact networking opportunities, which are especially important as young professionals seek to leverage their skills in an increasingly competitive job market. 

Understandably, this social isolation also connects with Gen Z’s collective worry about productivity while working remotely. This worry and isolation has contributed to a concerning rise in stress and anxiety for this young generation, as they grapple with work-life balance during a pandemic. 

To help alleviate some of these anxieties and promote mental wellness, CRE firms can construct spaces with features proven to improve morale and productivity, like natural light and eliminating open floor plans. 

The Gen-Z workplace should look and feel like an optimized hybrid office.

The preferences of Gen Z workers coincide with many hybrid workforce initiatives, except for the fact that Gen Z workers want a dedicated office space more than any other generation. This is good news for CRE leaders. The desire for a dedicated workspace hasn’t ended during the pandemic and, if Gen Z is any indication, the market for convenient and connected workspaces should remain steady. 

In order to begin the process of workplace optimization, examine your existing contracts and the features of your spaces. By examining what younger generations are looking for, real estate leaders can better anticipate the trends and preferences of future tenants.

Communicating with your tenants and reconfiguring spaces as necessary, can also build trust and loyalty with your tenants, which can then lead to longer partnerships. 

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