Three New Metrics for the Flexible Workplace Era

• Office ROI: The world has changed how it uses the office so it is time to change how we calculate the costs and benefits of a workplace as well.

• On ICE: The construction industry is forced to deal with the growing threat of ICE raids on jobsites.

• Rate expectations: Despite initial fears that Trump’s tariffs would stall the market, commercial real estate is rebounding

Perspective

Three New Metrics for the Flexible Workplace Era

The COVID-19 pandemic didn't signal the end of the office—it redefined its purpose. Five years on, it's clear that in-person collaboration remains vital, but the way we measure and manage office spaces must evolve. Traditional metrics like cost per square foot and average utilization no longer capture the complexities of hybrid work environments. To navigate this new landscape, companies must adopt innovative metrics that reflect actual usage and value.

Enter cost per visit, cost of vacancy, and peak utilization—three metrics that offer a more nuanced understanding of workspace efficiency and employee engagement. Cost per visit aligns expenses with actual office use, treating employees as consumers of workspace. Cost of vacancy highlights the financial impact of unused spaces, prompting strategic decisions about real estate portfolios. Peak utilization provides insights into how spaces are used during their busiest times, revealing opportunities for optimization.

By leveraging these metrics, companies can transform their approach to corporate real estate, creating work environments that are both cost-effective and conducive to productivity. This shift isn't just about numbers; it's about understanding and enhancing the employee experience in a hybrid world. Embracing these new measurements is essential for organizations aiming to thrive in the future of work.

Overheard

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Multifamily Security

ICE Raids At Job Sites Stir New Fears In Construction Industry

Recent Immigration and Customs Enforcement (ICE) raids on construction sites are raising concerns within the industry. Over 100 undocumented workers were arrested at a Tallahassee, Florida, student housing project last week, while additional raids occurred in New Orleans and San Antonio. The operations—part of the Trump administration’s broader immigration enforcement agenda—have heightened fear among construction workers and employers.

Although it’s difficult to gauge the exact number, some estimates suggest that roughly one-fifth of the U.S. construction workforce is undocumented, meaning enforcement actions risk significant disruption. Following the Tallahassee raid, some Florida sites shut down temporarily, with industry leaders warning of a chilling effect on an already strained construction labor market.

Contractor groups, such as the Associated General Contractors of America and the Associated Builders and Contractors, are urging their members to vigorously verify employment status and prepare for potential raids. 

Brian Turmail, VP of public affairs and workforce for the Associated General Contractors of America, notes that the U.S. has long underinvested in trade careers while restricting legal pathways for foreign-born workers to enter the construction industry. 

This policy imbalance—discouraging domestic interest in trades, limiting legal immigration, yet maintaining high demand for construction—has contributed to the sector’s heavy reliance on undocumented labor. “We should not be surprised that undocumented workers are employed in this sector,” Turmail said.

Tariffs Are Not Stopping the Commercial Real Estate Recovery

When President Trump announced that he would be imposing tariffs, the country braced for an economic slowdown. The expectation of a slowing economy caused a lull in commercial real estate deals. But, according to new data, that slowdown was only temporary.

Heads of some large commercial real estate companies have said that they see signs that commercial real estate is shrugging off tariff fears. They say that despite the tariffs, they are still bullish on the macroeconomic situation when it comes to a commercial real estate recovery.

The big question that is still adding uncertainty for the real estate industry is when the Federal Reserve will lower interest rates. The current Fed Chair has said that he wants to see signs that inflation will remain low. But his tenure ends in May of next year and it is expected that the next chairperson will be much more willing to listen to the Trump administration's desire to lower rates to spur the economy. If rates do get lowered, it will ignite more real estate deals and push property prices higher, no matter what happens with the tariffs.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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