Not only has hybrid work changed the way corporate real estate (CRE) organizations operate, but it has also amplified the need for new technologies and different measures of success. CRE leaders are aligning their real estate priorities with their business strategies. This is a significant shift, moving from a tactical to a strategic approach.
JLL’s latest Metrics that Matter research revealed key strategic objectives, with three top priorities between now and 2025:
- Operationalizing hybrid work models to support agility and flexibility
- Improving workforce resilience by enhancing physical and mental health and well-being
- Improving operational efficiency and portfolio resilience
Measuring the right things is imperative to achieving these objectives and more. To do this, CRE organizations need to implement proptech solutions to monitor performance and glean valuable insights.
Following are the top 15 standard metrics that matter CRE leaders should be measuring across operational excellence and agility, human experience and performance, and responsible real estate and sustainability.
Operational excellence and agility
Real estate must be flexible and agile to drive future portfolio transformation, have greater resilience, and remain competitive.
1. Space Utilization
How, where, and when employees are using space. For example, are common spaces being used more than private desks at certain times of day?
2. Capital Planning
The capital expenditure required for future planning of the CRE portfolio.
3. Cost Savings
The overall cost savings of CRE, measured by comparing the CRE costs recorded monthly with the CRE costs of previous years/months or by an external benchmark.
4. Total CRE Cost per Person
Total occupancy costs per person. By measuring the total CRE cost per person over time, organizations can get a sense of current and future cost savings through predictive analytics.
5. Real-time Space Utilization
Number of employees that are present in the building unit at a specific time.
Human experience and performance
Workplaces that are powered by human experience and prioritize employees’ physical and mental well-being will benefit from the best human capital, allowing employees to flourish and perform long-term.
6. Employee Engagement
Employee level of engagement with their workplace. For example, are employees taking advantage of the amenities in the space?
7. Attrition Rate
The annual turnover rate of employees.
8. Indoor Environment Quality
Index of air, thermal, lighting composition, sound levels, vibrations, and odor evaluation.
9. Availability of Space Options
The proportion of focused work, collaborative work (including virtual), and physical work in the workforce to assess requirements by space type.
10. Workspace Composition by Type
Assigned and non-assigned offices, cubicles, open plans, and activity-based offices.
Responsible real estate and sustainability
A commitment to reducing carbon emissions and nurturing a continuous cycle to transition toward sustainability and net-zero outcomes, while achieving operational efficiencies, is now a common corporate goal.
11. Carbon Footprint/GHG Emissions
Change in CO2 emissions YOY/GHG (greenhouse gas) protocol corporate accounting and reporting standard.
12. Energy-Efficient Buildings
The proportion of low-energy rating buildings in the portfolio.
13. Inclusive Workplace
The ability of the workplace to drive engagement and inclusion through design. Promoting and supporting diversity is at the core of a human-centered workplace, with thoughtful design features such as childcare facilities, prayer spaces, and lactation rooms.
14. Supplier Diversity
Supplier spend on MWBE (minority and women-owned business enterprise), DBE (disadvantaged business enterprise), and small and local businesses.
15. Workforce Diversity
Degree of diversity in the organization (e.g., gender, race, age, ethnicity, nationality, cultural identity, sexual orientation, etc.).
Driving the long-term transformation of your real estate portfolio requires the right metrics and data-driven decision-making. The organizations that do it right will be able to show the value of CRE performance measurement, future-proof their businesses, and drive the ongoing transformation of their portfolios.
Learn more about the metrics that matter and get the full JLL report.