The Technology Twist
Our previous week’s CREview, noted; Where it [impact of AI] ends up, we don’t know. What we do know, is the last round of “automation technology” slowly and steadily reduced the use of office space from 15 m2 per person in the mid-1990’s to 10 m2 per person in the late 2010’s. That’s an average reduction of 1 m2 per person per 4 years.
In hindsight it is not just technology but so many other factors that have changed the demand for office space including, design, leadership, and of course, the cost of office space and fitouts. Throw in a pandemic to mix things up.
Our CREview sparked some interesting reactions and conversations. Several were how technology does not solve problems when action must be taken. It’s great for coming up with possible solutions and even evaluating them, but not so good at getting stuff done. Naturally, the roles of these individuals are more action-oriented, transaction or project-led.
AI can, and will, assist in a large portion of the work we do – for example, data collection and analysis, document production, design etc. However, the ability to automate or replace the more ‘human’ elements and interactions that make up a lot of our jobs, remains to be seen.
There is something to be said for the role that human emotion plays in decision-making, especially when it comes to office space. Excellent tools and data exist to help businesses analyse the factors they need to consider when deciding which direction to take. Yet, we have seen time and time again that ultimately the decision to lease one space versus the other comes down to the ‘feeling’ tenants get upon inspection.
Sometimes, the front runner (on paper) becomes an immediate exclusion within moments of walking through the door. Although data plays an important role in analysing the commercial, design, and locational aspects of a space, there is no replacement for determining whether a space ‘feels’ right.
Brookings Institute report, Generative AI, the American worker, and the future of work, highlights, “Unlike previous automation technologies that primarily affected routine, blue collar work, generative AI is likely to disrupt a different array of “cognitive” and “nonroutine” tasks, especially in middle- to higher-paid professions.”
Looks like AI is going to disrupt routine and nonroutine professions and this will impact the demand for office space in some shape or form over the years to come.
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