According to the Ministry of Land, Infrastructure, Transport and Tourism`s FY2023 Telework Population Survey,16.1% of corporate employees and public servants in Japan teleworked in the previous year, a year-on-year decrease of 2.7 points. Further analysis showed that, during the COVID-19 pandemic, those who teleworked between 1 and 4 days had increased, and hybrid work — the combination of going to work and teleworking — had become more common.

In these circumstances, many organizations are concerned about whether their existing offices are fit for purpose. Typical concerns are whether it is OK to operate the same type of office as before the pandemic, how big it should be now that fewer employees are commuting to the office, and what kind of space should be created to ensure that maximum use is made of the time they actually spend there.
Mitsubishi Estate, a developer and operator of office buildings in Japan’s major business areas, had relocated its headquarters in 2018, before the pandemic. After a major renovation in 2023, the company is conducting guided tours of its headquarters to introduce its clients and other stake holders to how the new, idealized workplaces will be implemented.

Hikari Ota is a manager in the Facility Management Consultancy Office, Office Leasing and Tenant Relations Department 1. As an expert on the relationship between the work style and the workplace and as a member of the renovation project team, she explains the concept as follows.

“Now that teleworking is well established, it is possible to work anywhere, and the office has changed from being a ‘place to work ’ to a ‘place to communicate’ where people build relationships and create the corporate culture. Office design is now much more than just simply providing the number of seats required for the total number of employees. The first step in planning a new office is to think about the company's ideal image and how each company would like to operate and grow using its workplace. We want to help each company to create offices that fit their needs and holding the tours is part of that.”

Before relocating to the present headquarters, Mitsubishi Estate had an office arrangement that was typical at that time. This was characterized by walls separating each section, and seating arrangements in each room that placed the managers at the front, distant from the young employees at the back. The seniority system prevailed, divisions opened up between the sections, and a silo mentality was inevitable.

The relocation concept, "Borderless! x Socializing!," was developed with the goal of breaking free from an unchanging workstyle. The goal was to create a space that eliminated the psychological boundaries between employees, allowing for more fluid communication and collaboration. With 70% of the stored documents eliminated, the new office featured an open work space with group address zones. Furthermore, there was also an expansion of communication opportunities, such as introduction of cafeterias. This was highly appreciated by the employees.

These steps alone were sufficient to transform the office into an environment that was considerably more conducive to work.However, Mitsubishi Estate did not stop there.The company continually conducted employee surveys, one of which found that a small relaxation room which had been a focus of attention when relocating in 2018, had since lost its popularity due to the rise of teleworking and flexitime working during the pandemic. It also became evident that the utilization rates for certain meeting rooms had declined and that they were no longer being effectively utilized.

The social circumstances have changed, and so have the working styles. We need offices that are suitable for the new working styles. This is why we decided to renovate the common areas extensively.
“Many employees expressed their desire to dedicate time to face-to-face communication and discussions during the office workday.. We thereforeprovided comprehensive support for communication, and explored methods to enhance productivity. The introduction of new meeting rooms equipped with portable furniture and adjustable layouts enabled participants to engage in joint meetings with minimal restriction based on their position within the company. This initiative brought colleagues closer together, with the usage rate of the new rooms nearly doubling that of the former general-purpose meeting rooms. When considering the post-pandemic office, I was able to appreciate the absolute need to support communication.”
A mini lending library was also established at the light refreshment booth with a mechanism created to allow employees to come and go and chat. To promote communication and collaboration, employees were encouraged to interact with colleagues from different sections in dedicated workspaces outside designated group address zones. In addition, the number of booths for individual concentration and customized meeting rooms for online meetings was increased to provide employees with dedicated spaces to nurture and refine ideas generated through communication.

“After the renovation, we received a lot of employee feedback including the following comments: ‘It led to new ideas more easily,’ ‘Flexible opinions and ideas could come to the surface,’‘I could carefully deepen my thoughts at the focus booths,’ and ‘Leaving my own section’s zone when I was stuck for ideas was an effective way to change my mood.’”

There is a growing trend of companies adopting "human capital management" initiatives. This approach views human resources as a form of capital and aims to maximize the return on this investment, which can lead to mid to long-term increases in company value. These initiatives focus on key questions such as how to retain suitable staff and reduce turnover rates. As part of this, it is essential to assess the optimal design of office spaces.
“In my opinion, corporate worth can be enhanced not only through the introduction flexible working hours and remort working systems, but also by creating an environment where employess can demonstrate their abilities. To achieve this, an increasing number of companies are involving not only their general affairs departments but also HR and business planning teams in the development of their office strategy.”

It is important to note that changing your office is likely to be expensive. While this is something that should be considered carefully, Hikari Ota recommends taking a mid to long-term viewpoint.

“Through the relocation and renovation of our headquater, we have realized that , office creation is not a `cost` but an `investment for the future`. We believe that by investing in our offices, we have been able to grow in the right direction as a company in various aspects, such as responding to diverse work styles and changing the mindset of our employees. Putting the office into perspective is also a way of rewarding our employees and is part of our management strategy. We would be happy if you would consider developing an office as an opportunity to take the next step towards growth. Please contact us for a tour or to discuss your needs!