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Is humanity the future architect? How human connections will ultimately shape the future of Real Estate

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Is humanity the future architect?How human connections will ultimately shape the future of Real Estate

JLL is always looking for ways to innovate, pioneer and expose our clients to the latest and greatest in thinking about our workplaces, buildings and cities.

TEDxSydney was a perfect partner for us to explore the future with. With a passionate and creative community of industry and cross-specialty experts and innovators, this event provided many new and disruptive ideas for consideration.

Our partnership with TEDxSydney took the form of a research project, Urban Canvas, which involved an extensive quantitative survey, a full-day workshop and a round-table boardroom lunch. This ensured we extracted the best independent thinking on design, built environments and human behaviour.

The survey and workshops, together with professional expertise from JLL’s leaders in Corporate Solutions, Property and Asset Management, and Leasing, shaped the thinking in this whitepaper.

Summary of survey participants (n=200)

Industries represented:HR Banking and Finance Health Retail and Property Consultancy InnovationTourism GovernmentMotoring/Advocacy Architecture Not for Profit EngineeringIT PharmaceuticalsTechnology EducationFMCG Digital mediaResearch

Gender:Females 71%

Males 29%

Age:18, 1% 20-29, 16% 30-39, 35% 40-49, 32% 50-59, 13% 60+, 3%

Can we achieve a future dependant on people, not

machines?

CONFIRMED: Private space booking

3.30pm

2 3IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Executive Summary

This was the question posed to the TEDxSydney community in March 2016. The concept of Mars was used to give people a blank canvas and understand what they would create without the limitations of the existing built environment. If we had the ability to start again, would we even build Central Business Districts, or would we favour smaller hubs closer to home? Would we improve transport, work more flexibly, build high-rises or maintain more green space?

The results were unanimous in their focus and priority on human connections and a desire to be closer to nature. It seems that amongst our condensed and densely populated skylines, the people living and working within them, are craving more open spaces, more air, and more natural materials and environments.

Participants sought a lifestyle where home and work were more interconnected in a physical sense, (e.g. creating community workplaces, co-working or having flexibility in regard to location), whilst craving to be less connected mentally and emotionally. It was observed that while the corporate world has come some way in addressing flexible work hours, as a result of technology advancements, this has also resulted in a workforce that doesn’t ‘switch off’. Workers can no longer leave work behind when heading home, which is already having an impact on mental health amongst office workers. The community saw a future where technology continued to increase productivity and therefore the ability to spend more time with family and friends, as well as enabling physical human connections, as opposed to virtual ones.

If Mars became habitable for humans by 2050, how would you go about urbanising it to create places for people to work, live and play?

While technology continues to evolve at a rapid rate, human needs have not. Our basic needs and wants remain consistent with what they were 100 years ago. We saw five key themes emerge when asking the TEDxSydney Community to design their future, four of which focused on human needs.

Throughout our research, certain mega-trends also emerged that might shape how we interact with our urban environment, including robotics, quantum computing, driverless cars and co-working.

However a strong desire for greater authenticity, deeper human interactions, a focus on health & wellbeing and a closeness to nature continued to dominate. Despite technological advancements and the expectation for robotics and Artificial Intelligence to be introduced, there was a desire for a future dependent on people, not machines. 88% of respondents placed high value on face to face interaction in the workplace of the future. Even though all work could be conducted via technology by 2050, there was a desire for continued human engagement, connected communities and workplaces that fostered co-working and entrepreneurship.

The future will be characterised by buildings that open up to the environment around them, cities with more boulevards, town squares, public seating and tech-free zones to encourage human interaction.

Top priorities in establishing a built environment, according to respondents, were creating a sense of community, supporting health and wellness, fostering social cohesion and interpersonal relationships, as well as entrepreneurship.

Interestingly, if we were to start again many people would not replicate the existing built environment. Participants wanted multi-purpose structures (81%) and liked the concept of an eco-campus where individuals could live, work and play within one community. 57% of respondents wouldn’t create Central Business Districts (CBDs) where the majority of business interactions occur. Instead, 78% of people wanted to create small self-sufficient communities where you could work and live, rather than commuting. Only 17% of respondents would create a high-end ‘trophy’ workplace that exists in many cities today.

When continuing to evolve our workplaces, built environments and cities into environments where people thrive, it’s imperative that we consider the following:

Human connections

Nature and Human Sustainability

Social Consciousness

Health and Wellness

Robotics and Artificial Intelligence

4 5IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

When looking specifically at how workplaces in the future would function, there was an emphasis on co-working with 88% of respondents indicating they would create a workplace that allowed people to work with other businesses and entrepreneurs. 84% would create a variety of workplaces for people to choose from and offer a high level of customer service and amenities (80%) such as a fitness centre, sleep pods and movie lounges.

Mental health and wellness would be a priority for a new urban landscape in 2050. 92% of respondents wanted to create a responsive workplace that adapts to enhance the health and wellbeing of its inhabitants. In addition, 83% of people would install biometric capabilities in buildings to monitor and adapt to users.

Built structures would be ‘smart’, with 88% of respondents indicating they would capture data to allow adaptation based on usage patterns. 86% of buildings would have environmental indicators including air quality, allergens and UV sunlight. 78% of respondents also would incorporate 4D telepresence to allow seamless virtual collaborations in the workplace.

Robotics and Artificial Intelligence absolutely have a role in the workplaces and cities of the future. 78% of respondents believe that at least 40% of the workforce in 2050 would be made up of robots. 85% of respondents suggested that all transportation would be automated or self-driving and 4D printing would have replaced all manufacturing needs (79%). There was a recognition that robots wouldn’t just be undertaking administration or highly automated tasks, with 55% of respondents believing that boards of directors and governments would be made up of both humans and Artificial Intelligence by 2050.

A connection with nature was a very strong theme with 56% of respondents prioritising their relationship with nature over return on capital. Ideas on how nature could be incorporated into the built environment included internal nature walks, open-air workplaces, running waterways, green external facades, super-food roof gardens and stimulating all five senses with sounds, smells and natural materials. Cities would also embrace less steel and concreate to have safe, green links and more open space to allow for engagement with the surroundings.

80%40%

of the workforce on Mars will be made of robots

all transportation will be automated

of participants were in agreement that when planning a city on Mars....

• Structures to all be multi-purpose providing places to live, work & play

• Creating small communities that are self-sufficient

• Using the best locations with great views for recreational activities

Priorities when first landing on Mars

of participants place high value on face-to-face human interaction.

95%59%

still wanted physical

workspaces

81%

of people wanted to work, live and play within ‘eco

campuses’

wanted built structures to be ‘smart’ and provide data to allow adoption based on

usage pattern

84%said biometrics would monitor

health and well-being

99%

wanted the ability to work with other businesses & entrepreneurs

87%said they would have no need for a high-end ‘trophy’ workplace

ASPECTS OF SOCIETY

Ranked by participants (most to least important)

1 Community

2 Health and wellness

3Social cohesion or inter personal relationships

4 Entrepreneurship

the

of work future

on Mars

6 7IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Implications for Workplace

59% of the TEDxSydney community still believed in the need for a physical workplace in 2050 - an environment characterised by robots, collaboration across organisations in shared space, and somewhere that has a positive impact on health and well-being.

The companies that will benefit from the disruption set to take place will be those with a clear view of the technological and organisational drivers of change, who have the vision to make bold decisions on how these forces will reshape their real estate, and who are able to respond to changes taking place today.

Being a successful company in the future will be more demanding than it was in the past.

Human connections

To create interaction and authentic experiences, at least 50% of total space will be allocated to co-working and fit-outs will be modular to allow for complete adaptability. It’s estimated that by 2030, 30% of Corporate Real Estate (CRE) portfolios will be allocated to flexible workspace1.

The growth of a more liquid workforce will also allow firms to rely more heavily on networks of freelancers and specialist providers, who will be brought in for particular projects where their expertise is required. This will enable companies to access skills they don’t possess in their own organisation and realise the financial benefits that come with delegating work to highly specialised outsiders. The growth of contingent workers also has the potential to inversely impact headcount and, therefore, real estate needs.

Flexible locations – like co-working spaces and serviced offices – will become an integrated and essential component of real estate strategies of large companies

Space would be curated to expose users to diverse thinking, sub cultures and promote self-expression, whilst providing opportunity and space for the community.

Facilitating more family time and togetherness continued to be addressed throughout all interactions with the TEDxSydney community. Concepts like ‘school@work and work@school’ where children would be able to study / learn in the workplace, integrated childcare and even ‘child delivery’ (meaning your children are brought to you rather then you collecting them!) all served the purpose of allowing families to be more physically present.

Interactive walls replacing individual screens would foster more collaboration, whilst working labs would act as incubators for innovation. 4D telepresence would also allow individuals a fully immersive experience, even though they weren’t physically present at a meeting or collaboration session.

Health and Wellness

To support health and wellbeing, workplaces will be designed to allow sensory experiences. This would include bringing the sounds and smells of the natural environment into the workplace be it fresh alpine air, tropical coconut or the smell and warmth of a wood fire to positively affect mood and cognition.

Workplaces would accommodate walking meetings, standing rooms, bike tracks, running tracks, 15-20 minute workout gyms, round-the-clock yoga classes, massage centres, healthy canteens and access to health professionals, allowing occupants the opportunity to attain their health goals whilst in the workplace. At least 20% of the footprint of a workplace will be dedicated to wellness space reflecting the above activities, as well as offering recreational pursuits including swimming pools, sleep pods and gymnasiums.

The workplace will be smart, allowing biometric monitoring of all individuals, measuring not only their movement and heart rate, but also air quality inhaled, body temperature and recovery time. Individuals could then adjust their workplace settings to better support their own biological needs.

Nature and Human Sustainability

To reconnect people to nature, workplaces would have a better balance of indoor and outdoor space. Office buildings would all have outdoor space to facilitate working in natural light and fresh air, with retractable skins to protect against the elements. Virtual walls or rooms would bring nature into the workplace, morphing between a range of beautiful natural landscapes, with accompanying sounds and smells to invigorate and inspire users.

Social Consciousness

A workplace that is fully sustainable and encourages philanthropic endeavours was high on the TEDxSydney agenda. Shared economy models were suggested as a way to ensure individuals, businesses and the built environment gave back equal to what they used, or took. In the workplace, this is likely to manifest into zero carbon emissions, sustainable and ethically sound materials, ethical practices on robot and human interactions, as well as no gender pay gap or inequality in female leadership numbers.

Robotics and Artificial Intelligence

With the expectation that robots would make up 40% of the workforce, the workplace will need to change drastically to support this new user group. Workplaces need to accommodate the varied demands of machines, Artificial Intelligence, robots and human beings. This could manifest into human only zones, less cluttered workplaces (as robots don’t need furniture), greater power requirements, robot recharging stations and finer construction details such as ensuring floors are level to enable robots to move unencumbered.

The growth of outsourcing and automation will see companies group their workforces into three categories:

1 employees,

2 contingent workers, comprising freelancers and specialist providers sourced via talent platforms, and

3 autonomous workers, such as algorithms and robots that automate and augment the work done by their human counterparts.

Companies will become leaner and more dispersed, summoning the expertise of outsiders when required regardless of where these workers might be based. Firms that utilise contingent and autonomous workers more will be able to increase their output without a concurrent increase in headcount. A recent example of this trend can be found in Wall Street firms replacing human traders with automated algorithms. The number of people employed in the New York financial sector declined from 150,000 in 2000 to 100,000 in 2013. This decrease occurred despite huge increases in both the volume of transactions and profitability of Wall Street firms2.

It is hoped that the automation of tasks via robotics and Artificial Intelligence will provide people with more time to be creative, innovative and strategic. We’ll see this shift translate into a workplace that facilitates more collaborative efforts, such as innovation incubators and collaboration spaces.

1JLL Workplace Reworked: http://theedge.jll.com/report/workspace-reworked/

2The Rise of the Robots: Technology and the Threat of Mass Unemployment, Martin Ford, 2015. 43 Coming to an Office Near You, The Economist, January 2014. http://www.economist.com/news/leaders/21594298-effect-todaystechnology-tomorrows-jobs-will-be-immenseand-no-countryready

8 9IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Case Study: Robotics at work

JLL has recently implemented a robot receptionist / concierge at 50 Carrington Street, Sydney - her name is JiLL.

Robotics are already becoming a part of Australia’s corporate landscape, with companies like Stockland and Commonweath Bank partnering with Australian Technology Network of Universities (ATN) to identify opportunities and limitations in human-robot interaction. Together they will also look at the commercial applications of social robotics across a number of industries3.

Image: CBA & Stockland Unveil “Chip” The Robot In First Of Its Kind AI Experiment

JLL has also begun to experiment with robotics, most recently introducing a robot receptionist at 50 Carrington Street, Sydney. Named ‘JiLL ‘, the robot will greet staff, visitors and couriers and support them with a range of front of house tasks, including check-in for meetings, providing directions, contacting hosts and recording and reporting technology or building maintenance issues.

We’re excited to be a part of the fast-advancing field of Artificial Intelligence

Key Stats to highlight around workplace:

88%of people placed high or very high value on face to face interaction in the workplace of the future

88%of respondents wanted the ability to co-work with other businesses and entrepreneurs

92%of respondents desire a workplace that responds and adapts to enhance wellness and wellbeing

84%of respondents wanted a variety of workplaces to choose from, not just one physical location

78%wanted the ability to work as an entrepreneur in an incubator/start up environment

54%said it was important or very important to create a workplace that feels like home

41% said there would be no need for physical workspaces at all

29%believed your business would determine where your workplace is located

3http://www.bandt.com.au/technology/cba-stockland-unveil-chip-robot-first-kind-ai-experiment

10 11IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Experiment with pro-working: Allocate just half a floor of your space to be shared business space. Start by inviting your clients or suppliers to use the space and then extend the opportunity from there. If it is successful you can work out a model that helps fund the co-working space, although the business benefits are likely to strongly outweigh any costs. Corporates including NAB and ANZ have already done this.

Boost your environmental indicators: Undergo the recently launched WELL Building Standard (as discussed in our ‘Future of Work’ whitepaper) to assess your building’s contribution to employee wellness. It is organised into seven categories of wellness including air, water, light, nourishment, fitness, comfort and mind. The WELL Building Standard has 102 performance metrics, design strategies and procedures that both owners and occupiers of buildings can implement to achieve wellness outcomes. Once completed, communicate the metrics back to your workforce and commit to ongoing measurement and improvement.

Re-assess flexibility: Over the past 10 years, we have untethercd workers from their desk. Explore how you can further enhance flexibility via the decentralisation of your office from one Head Office into various hubs in key employment locations. This could be done with other complementary businesses so the cost is not borne by one organisation. Data will drive design, cementing the link between the strategic aims of a business and day-to-day operations. Workplaces must become more modular and suitable for cost effective redesign. Companies will achieve this by renting, rather than buying, more of their office furniture so that refits and redeployments can occur more frequently.

Experiment with robots: Accessibility to robots is increasing every day. Schools are using robots to teach children how to code, they are being used in the home to clean, at work to fulfil administrative tasks, and soon driverless cars will become a mainstream reality. There are ways of experimenting with robots in the workplace such as replacing wayfinding with a friendly robot to point people in the right direction, using one to educate staff in place of online training, or getting a robot receptionist, like JLL’s JiLL.

Experiment with virtual reality:We’re seeing the use of VR by developers and real estate companies to visualise unbuilt structures and space. But VR can also play a role in enhancing the workplace experience by, for example, transporting employees to an exotic location where they can de-stress and recharge.

Enhance the workplace experience: Demand for software engineers, data analysts and other technical talent is already massively outstripping supply. This is not only driving the costs of talent up, but leading corporates to offer a range of nonfinancial perks to attract top talent. In support of their talent strategies, leading firms are putting ‘user experience’ at the forefront of their workplace strategy. Offices with generous food and beverage provisions, kitted out with gyms, games and recreation spaces are becoming increasingly common as firms compete for top talent. Giving employees choice and flexibility over where they work is becoming a top priority. Look at fitting out your offices with a greater variety of spaces to work in and giving staff the best gadgets to work from.

Bring authenticity into the workplace: To forge deeper human experiences and create connections to the space, organisation and peers, consider offering activities that are technology free in the workplace. This could be as simple as storytelling sessions, walking tours around the local area to explore the environment or guided meditations.

Internet of Things: With the explosion in the number of devices connected to the internet, organisations should be monitoring the data and usage patterns of employees to understand what drives productivity, collaboration and individual work performance. This insight would provide organisations with the ability to tailor the workplace to the people.

For more information on how technology will shape our future, read our paper: Workspace-Reworked for occupiers at http://ridethewave.jll.com/

What can you do today toprepare for 2050 trends:

Liquidspace - the Uber for office space

themed rooms

proworking

Human Connections

school @ work work @ school

touchscreens and shared walls

Health and Wellness

virtual reality rooms

responsive environments

healthy canteen

zen zoneinternal

nature trails

compulsory recreational footprint

in workspaces

integration of work and play

Nature and Human Sustainability

indoor and outdoor work environments

sensory environment

20%

pets @ work

every floor open to natural elements w/

fresh air

Social Consciousness

energy conscious behaviours

diversity driven workplace

community focus

war on talent influenced by CSR

Robotics and Artificial Intelligence

Robot Resources Management Department

human only zones

AI assistants commonplace prioritising and informing

decision making

RRMD

4D telepresence

the of future workplace

12 13IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Implications for Buildings

Amidst a future of flexible, adaptable and multi-purpose workplaces, we need to consider the implications to the built environment. Across all major CBDs in Australia, we can clearly see the legacy of the industrial revolution amongst our highly populated skyline, gleaming commercial towers and limited public spaces. When posed the question ‘what would you do if you got to start again’, only 43% of participants chose to replicate our CBDs, meaning the remaining 57% desire a more widespread urban landscape, enabling shorter commute times, less congestion and more open spaces.

Obviously, this is not going to happen anytime soon. We live within a pre-existing urban map, containing goliath structures that will continue to have a purpose, however it is unlikely to be as singular. 81% of the TEDxSydney community envisaged a future of purely multi-purpose buildings, meaning the death of the ‘office building’ as we know it. Property portfolios will be driven around short term opportunities rather than long term leases.

However, it will no longer be about just leasing space. When constructing or refurbishing buildings, owners will need to consider how they are contributing to both the city as a whole, and the community within and around it. Top priorities in establishing a built environment, according to respondents, were creating a sense of community, supporting health and wellness, and fostering social cohesion and interpersonal relationships.

Key Stats to highlight around built environment:

80%of people placed high or very high value on face to face interaction in the workplace of the future

88%of respondents wanted the ability to co-work with other businesses and entrepreneurs

86%of respondents desire a workplace that responds and adapts to enhance wellness and wellbeing

83%of respondents wanted a variety of workplaces to choose from, not just one physical location

Human connections

Establishing human connections will see placemaking at the forefront of Property Management. Placemaking serves as a way of entrenching a building into a community and establishing loyalty and an emotive response from a tenant, in the same way a person’s home might. It has the ability to increase both the value and yield of an asset by tapping into our human wants and needs to feel a part of something bigger than ourselves.

Since its relatively humble beginning in retail, placemaking has slowly been adopted into commercial assets, however is still often seen as a ‘soft service’ that’s “nice to have”.

Within five years, placemaking is likely to be a key differentiator amongst commercial asset. In twenty years it will define an asset.

Developments such as Barangaroo, Sydney are leading the way in creating the ‘eco-campus’ of the future, providing residential, commercial and retail space amongst 100% publicly accessible parklands and community activated spaces. Placemaking continues to be instrumental in activating the public spaces and ensuring the community embraces the development.

In regard to leasing property, the desire for more connections will see 30% of portfolios allocated to flexible, co-working space by 2030. A new asset class will emerge to bridge the gap between institutional leasing and co–working. Designed for dynamic businesses that require 5,000 - 20,000 square

metres of space, this segment will often be facilitated through partnerships, which will marry equity with the expertise to actively manage what will become an increasingly fluid use of space.

Technology has facilitated flexibility and this has given rise to greater

desire for new types of space, which is already translating into new

lease structures.

Mixed-use buildings will also serve to diversify tenants and uses, providing a richer experience for all users. In the years to come we may see multi–use developments start to emulate the retail sector, with a mix of tenants on multiple lease terms - large, secure anchor tenants will underpin income with further streams stemming from ‘churn’ occupiers, who will be charged more per square metre.

14 15IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Case Study: WeWork

Health and Wellness

83% of survey respondents wanted biometric capabilities to monitor health and wellbeing. In 2050 it is not unreasonable to assume a building will respond and adapt to the people within it. For example, when you enter a lobby, the building will receive a bio-metric reading of your heart rate, anxiety level, general health and even your age. This information will be used to enhance your experience within the building, such as temperature, sound, smell and visual adjustments via implanted devices or wearable technology (the next generation smartphone). Privacy concerns could be handled via personal firewalls that are activated to shutdown bio-metric readings if the individual so chooses.

Nature and Human Sustainability

Using nature within building design is a concept already embraced by many current architects, e.g. the natural sandstone wall at 30 The Bond, Hickson Road, Sydney, Central Park’s green facade and the use of greenery throughout its spaces, or the use of locally quarried sandstone at 200 George Street. Today these are buildings of note, however, in 2050 natural structures, materials and experiences will be expected, such as internal waterfalls, nature trails and the use of only sustainable products.

Declared the Best Tall Building Worldwide by Chicago’s Council for Tall Buildings & Urban Habitat, Central Park in Sydney is unprecedented in its investment in eco-friendly design. The mixed-use development has raised the bar in sustainable living not just in Sydney, but globally. As Australia’s greenest urban village, it houses its own on-site tri-generation plant. This energy source supplies electricity, heating and cooling using ingenious ‘green transformers’ powered by natural gas.

This connectivity to the surrounding nature and history exemplifies the way we will be building in the future.

A key example of co-working is WeWork, a US–based leasing provider, whose model operates by leasing floors and then charging monthly memberships to startups and small companies. This trend is particularly pronounced in the US. JLL figures show that in Chicago the number of shared workspaces (accelerators, incubators, co–working and executive suites) almost tripled between 2013 and 2015 to 88 locations (200,000sqm), representing 1.5 percent of the total downtown office stock. According to a recent article in the Huffington Post, in New York’s commercial real estate market tech startups drive much of the new demand and now account for nearly half of all bids in neighbourhoods like Flatiron, Chelsea and Union Square4. Similar patterns are also emerging in Europe.

There are critics of the co–working movement. However, what’s clear is the underlying trend. Businesses want flexibility and new innovations will emerge to meet this demand. As this trend takes shape in the years to come, many models will materialise. More sustainable and scalable platforms will evolve, enabling developers and landlords to work together on a profit share basis.

More sustainable and scalable platforms will evolve, enabling developers and landlords to work together on a profit share basis.

4Susman A. 2015. Four Ways the Tech Boom Has Changed NYC’s Real Estate Landscape. 15 Available at: http://www.huffingtonpost.com/aron-susman/four-ways-the-tech-boom-h_b_8341514.html

Social Consciousness

Community improvement and inclusion is a high priority when looking toward our future. Buildings that shape our cities have a significant role within the community, with placemaking being the vehicle that enables the community to engage with the built environment.

As the population increases and cities become denser buildings will become higher, and maintaining a sense of community will become ever more crucial. New builds as well as refurbished assets need to consider not only su+rrounding infrastructure, heritage requirements and natural resources, but also the people that exist within the building surrounds.

For more ideas, read our paper on how to create socially engaging tall buildings within communities: http://bit.ly/jll_tallbuildings

www.centralparksydney.comOwners: Frasers Property and Sekisui House | Managed by JLL.

16 17IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Robotics and Artificial Intelligence

Over the next 20 years, buildings will change significantly. The rise of the smart building will have become commonplace, with surveillance, monitoring and robotics all playing a part. These will provide insights into how a building is used, the physical needs of the inhabitants and potential improvements and cost efficiencies to be actioned.

The challenge is going to be developing existing buildings to deliver on future aspirations. We’ve recently seen a rise in residential conversions. However, iconic and heritage buildings will remain standing and will need to find profitable ways to adapt and evolve. In much the same way that the NABERS energy rating scheme has become an industry standard, we anticipate the potential rise of a ‘Smart Building Index’. Higher valuations would be achieved through the adoptions of this new metric.

For the last 5 years, we’ve seen tenants and communities expect more from a building, whether they live, work or play in it. The shift toward one-touch customer experiences, such as Uber and Amazon, has created a new expectation around customer service, speed and simplicity. Tenants expect maintenance issues to be minimal or non-existent, requests to be responded to instantaneously and additional services, similar to those you’d experience within a hotel, to be available when needed.

Personalisation of space will be critical5 and, through technology, building owners can provide tenants with the insights they need to create a better user experience for employees. As has been the case with social media, workplace technology such as sensors and badges will eventually evolve to bring about a greater work–life blend. Providing a tangible link between property and productivity will allow landlords to command higher rents or, at the very least, retain satisfied tenants. Building owners who respond to this and offer space that can meet individual employee requirements will stay ahead of the curve.

5Wired. 2015. Legendary Inventor Inks Deal to Test ‘Personal’ Cell Networks. Available at: http://www.wired.com/2015/11/legendary-inventor-inks-deal-to-test-personal-cell-networks/

6Top Strategic Predictions for 2016 and Beyond: The Future Is a Digital Thing

Gartner6 tells us that by the end of 2018 customer digital assistants (e.g. Siri) will recognise individuals by face and voice across channels and partners. They will be trainable and capable of learning from each customer interaction. JLLs pilot of JiLL, our first robotic receptionist, provides a glimpse of the future customer service capabilities.

With technology comes challenges, often in the form of security. As we and our buildings become more digitally dependant, firewalls and cloud security must be managed accordingly to ensure our systems aren’t vulnerable to cyber-attacks.

Landlords, developers and managers of real estate, who fail to put data management and security issues at the top of the agenda, will lose out to more forward thinking competitors who embed security in the fibre of a building.

For more information on how technology will shape our future, read our paper: Workspace-Reworked for investors at: http://theedge.jll.com/report/workspace-reworked/

Case Study: Deloitte’s The Edge

More sustainable and scalable platforms will evolve, enabling developers and landlords to work together on a profit share basis.

The adoption of smart technology by building owners has already increased significantly. According to a survey by International Data Corporation (IDC), building owners forecast smart building technology spending to grow from $8.2bn in 2014 to $22.7bn in 2019. Deloitte’s The Edge7, in Amsterdam, is a relevant example because it has put personalisation at the forefront of its design. It is equipped with tens of thousands of sensors which help employees to locate what they need in the building, from desks to parking spaces. Employees are even able to customise their working environment and the building management system can use data to adjust the lighting and heating in the building8. As a result of this technology, The Edge uses significantly less electricity than comparable office buildings. Sophisticated buildings reduce energy consumption and carbon emissions, which supports Corporate Social Responsibility (CSR) objectives.

7Epstein S. 2014. Deloitte’s Amsterdam HQ senses staff movements to save energy. Available at: http://www.wired.co.uk/magazine/archive/2015/05/start/deloitte–hq

8Legg–Tero R. 2016. Is this the most eco–friendly office in the world? Available at: http://www.opusenergyblog.com/greenest-office-world

Image: The Edge, AmsterdamPhotographer: Raimond Wouda

18 19IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Implement placemaking: If placemaking is non-existent at your asset, you can start small by introducing, free WiFi, public seating in sun and shade, ‘Plug and Play areas’, public bike racks and a community art and events programme

Incorporate a digital funding model into asset plan: Digital enablement costs money. New IT and experiences are ever evolving. In order for buildings to keep the digital experience current, realistic budgets must be allocated.

Bring the outside in: Think about how you can incorporate more natural resources into common areas, e.g. running water, use of natural rock and stone, trees and nature paths.

Prepare to go smart: Partner with a provider that can make your assets ‘smart’ via surveillance, monitoring, metering and even robotics, to ensure greater productivity and efficiencies.

Mix it up: If your assets are currently single-use, explore opportunities to incorporate retail, co-working environments, public and community spaces. As companies’ use of space start to diverge, developers should respond by offering a range of different fit out options and allow tenants to specify which is most suitable. Identifying and developing sites that closely align with occupier demands will justify higher rental premiums on developers’ locations and could lead to lucrative long-term partnerships with occupiers.

Consider a complete sensory experience: We know that smell, sound, sight and touch can all have a huge impact on experience. For example, a global hotel chain smells the same wherever you are in the world. Every hotel puts the same fragrance into the air, providing you with a sense of familiarity and comfort whenever you stay. Look at opportunities to provide your users with a unique experience, don’t underestimate the power of smell and sound in evoking an emotive feeling toward a building.

Welcome in the community: The majority of commercial buildings have a common lobby with a café that is frequented by visitors and tenants to the building. An extensive lobby refurbishment at 1 O’Connell Street in Sydney has greatly enhance the amenity of its ground floor with the addition of The Porter (a co-working space), new café and restaurants in Bowery Lane , free WiFi and public seating. A seemingly simple strategy, however it has had a significant benefit to not only the building value but also to the occupants, resulting in very strong leasing activity and take-up.

Encourage entrepreneurship: Co-working is already establishing itself amongst an agile workforce as an exciting alternative to corporate office environments. Corporations are also seeing the benefit of inviting startups and lean, agile businesses to work alongside their own staff to provide innovation, energy and shared IP. Consider utilising some common or under-utilised space for co-working to activate the building and encourage loyal future tenants.

What can you do today to prepare for 2050 trends:

mixed-use buildings only

more vertical connections

Human Connections

child-friendly environments

public and community space

placemaking is a commercial differentiator

Health and Wellness

superfood roof gardens

bio-metric monitoring

renewable energy sources compulsory

health facilities

tech-free zones

Nature and Human Sustainability

energy producing facades

compulsory green facade quota

giant water features

recycled structures

retractable facades and roofs

internal gardens

Social Consciousness

net zerobiophilic

architecturehealth based design

crowd sourcing DAs

security tagging and checks

repurpose carparks to accomodate driveless

transportation

Robotics and Artificial Intelligence

drone landing pods

accommodate additional energy requirements and

charging stations

the of future buildings

20 21IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Implications for Cities

Key Stats to highlight around cities:

78% wanted to create smaller communities that are self sufficient

43% would build a CBD hub where the majority of business interactions occur

75% believed people would work, live and play within ‘eco campuses’

60%thought your place of residence would determine where you worked in a city, not your company

62% would use the best location on Mars with views of Earth for recreational activities

The traditional city as we know it is set for change which will impact both

building owners and occupiers into the future.

In low–growth environments, investors should anticipate a growing disconnect between cities, and even specific urban areas within cities, that have the capacity for reinvention and the ability to harness the opportunities that arise from technology, and those that don’t.

Human connections

As already stated, the sentiment from the TEDxSydney community was for a decentralised urban landscape instead of one large CBD, consisted of community hubs where people could live, work and play. Whilst we can’t erase our existing city design, we can expand our thinking in regard to where to invest (e.g. fringe and metro markets). Tenants are already starting to look for workplaces that are more easily accessible, require less commuting time and therefore allow for a greater degree of personal time. The birth of ‘high-speed transportation’ is likely to decrease the concern around commuting times, however it will require more effective transport links which cities will need to accommodate.

Curated public spaces were high on the agenda of the respondents, with people seeking an increase in accessible sporting and recreational facilities, community spaces that promote social interaction and a prioritisation of the natural environment. Other features that were desirable were:

• technology free public spaces to facilitate authentic experiences,

• wider boulevards (which would be a possibility due to less cars on the road),

• more town squares or village greens to bring people together and safe,

• green links throughout the city connecting major landmarks,

• more public furniture,

• public health check stations, and

• public spaces integrated into built structures.

Health and Wellness

Converging evidence has revealed that growing up in the city doubles the risk of developing psychosis later in life. Studies have also begun to find that urban environments may heighten the risk of other mental health issues such as depression and anxiety9. Future ‘Eco cities’ will provide people with more open spaces and less pollution, improving chemical exposure levels, noise levels, allergies and other ‘urban ailments’. The shift to drones, self-driving cars and high-speed transportation will also serve to reduce stress levels associated with commuting and aid in increased family time.

Nature and Human Sustainability

A closer connection to nature will be a key driver for future workplaces, and building and city design are no exception. The concept of giving cities more lungs via more green open space was a top priority of the TEDxSydney community. Ideas raised included a green grid through CBDs and hard-wearing turf on pavements to ‘de-urbanise’ the landscape. Vertical vegetable gardens, urban farming and biodiversity will all no doubt have a place in the city of the future. The TEDxSydney community felt that many cities had lost their natural landscapes under the cover of urbanisation, with a desire to rediscover original creeks and streams below the streets, by showcasing them as part of the city and creating landscape links between natural assets of note.

89Does City Life Pose a Risk to Mental Health? https://www.scientificamerican.com/article/does-city-life-pose-a-risk-to-mental-health/

22 23IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

Social Consciousness

Cities of the future have a role to play in our social consciousness and creating a sense of community which often gets lost in a major global city. Open public spaces that can be curated for community and wellbeing experiences need to be amplified. Community walls were a concept suggested whereby individuals could contribute financially or by other means (example: expertise, man power) to support a cause in a public space. More festivals and cultural events that are free and accessible to all city residents, will help create the personality of a city which its inhabitants will feel a sense of belonging to.

Robotics and Artificial Intelligence

Technology will have the largest impact on our city aesthetic and design. Driverless cars will significantly impact road infrastructure, as well as the layout and space requirements of carparks. With the prospect of stackable or decentralized parking, many existing carparks will be converted to other uses. The increase of drones for deliveries, footage and security, may see drone docking towers becoming a reality. With less space on the ground needed for transport, our cities will have the opportunity to incorporate more public green areas and pedestrianized streets.

What can you do today to prepare for 2050 trends:

Engage with your city

Check your local city initiatives

Encourage the use of public transport by facilitating or sponsoring walk or cycle to work

Sponsor local charities

Take part in crowdfunding projects

Advocate for improvement and creation of public spaces

24 25IS HUMANITY THE FUTURE ARCHITECT? IS HUMANITY THE FUTURE ARCHITECT?

work/life balance is a reality

co-habiting spaces extended families and friend share households

flexibility sees increase in creative endeavours and thought

Human Connections

creativity and fun fundamental in design

Health and Wellness

wearables / implants to maintain health

community funded meditation and gyms

public kitchen gardens

calorie-free food

0

community health rating

virtual holidays

more public green spaces

tribal elements campfires and star gazing

Nature and Human Sustainability

exposed natural structures

sleep rooms

family wilderness hoidays

Social Consciousness

crowd based funding and investments

more facilities and priority given to elderly

community economic model

community goal setting

Robotics and Artificial Intelligence

AI driven networks

3D printed food for speed and convienience

high speed transport network

utilisation of mega data

Humans have been creating communities since the dawn of our social consciousness. Our cities are the bedrock of human interaction, fostering collaboration and connection. JLL has a long reputation for pioneering in the industry and we want to have a point of view and recommendations on how clients can plan and create future workplaces and buildings to respond to and cater for these trends. We are now building on this body of research and creating content to deliver to the market. For further information please contact:

Investor Services

Richard Fennell Head of Property and Asset Management, Australia

+61 2 9220 8690

Tim O’Connor Head of Leasing, Australia

+61 2 9220 8680

Corporate Solutions:

Chris Hunt Managing Director, Integrated Facilities Management, Australasia

+61 2 9220 8389

Rajiv Nagrath Head of Corporate Account Management, Australia

+61 2 9220 8321

For all media enquiries, please contact: [email protected] | +61 2 9550 8520

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Is humanity the future architect?

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