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Imagine a world where Hewlett-Packard dominated the personal computing industry. Or where Excite was the leader in web search and digital advertising. Or one where Blockbuster ruled the streaming video world—or even still existed, for that matter.

It may sound crazy, but all three of those things were once very possible. At one point in time, these three companies—who were then leaders in their industry—either rejected ideas or turned down the opportunity to purchase smaller companies that went on to be huge successes.

Today is that time for all building owners in the office space market.

The coronavirus pandemic has led to a lot of uncertainly in our world. It's tough to predict the future of so many things -- from health, to recreation, to politics, to work. With a second wave of the coronavirus pandemic seemingly upon us, it's tough to predict what life will look like over the next three, six, nine and even 12 months.

Christopher Stanton, a Marvin Bower Associate Professor of Business Administration at Harvard Business School, explained:

“The pandemic has brought about tremendous changes, and we couldn’t have anticipated the scale or speed at which they have occurred. I think there’s an important question about the extent to which this is going to be a more permanent change or not."

There's so much we don't know about the future of office buildings. But, one thing we do know is that you if you don't place your bets now, you'll have no chance of winning tenants later.

In times of a lot of uncertainty, you need to rely on those things that are certain.

We know that vacancy is going to spike in 2021 and possibly even in 2022. What's going to bring that down and turn that around are things that people do now.

Here are four more things we know, two things we don't know, and one thing you absolutely MUST DO NOW to ensure your office building isn't left behind.

ONE THING WE KNOW

The Nature of Office Work is Changing

Even before the pandemic, companies in the U.S. were beginning to embrace remote work, even if it was significantly far behind that of other countries. A 2019 Gallup poll found that 25 percent of all employees in the U.S. work remotely either all or most of the time.

The pandemic forced more companies to allow remote work environments. At one point back in the spring, nearly all employees who didn't work for an essential business -- and who still had a job—worked from home.

After being forced to deal with remote work, more companies are now embracing it for the future.

That Harvard Business School study found that at least 16 percent of all employees will remain remote workers long after the pandemic is over. The researchers in that study, which included Stanton, Zoe Cullen and Michael Luca, wrote:

“Estimates suggest that at least 16 percent of American workers will switch from professional offices to working at home at least two days per week as a result of COVID- 19. This would represent a dramatic and persistent shift in workplace norms around remote work, and has implications for companies, employees, and policymakers alike.”

Even if those estimates were to prove true, it would still mean that more than half of all workers in the U.S. would return to an office. So, while offices won't be going by the wayside, how they're used will certainly change. As Cullen wrote in the study:

“Despite the majority of employees returning to the office, the scale of remote work during the pandemic has the potential to lead to a persistent change in the organization of jobs for many firms and workers, in a way that wouldn’t have seemed possible last year.”\

TWO THINGS WE DON’T KNOW

What the Office Will Look Like After the Pandemic

There's a lot of talk about how offices are going to change forever as a result of the pandemic. And it's true. Offices will be different from what they were before the pandemic—and the trajectory they were on will be forever changed.

But what will the "office of the future" look like? Right now, that's anyone's guess.

A lot has changed in a very short period of time. What employees desired in an office space before the pandemic may not be what they desire after. Here are some items that most employees wished for in an office space before COVID-19, according to business surveys:

• Open floor plans and small meeting rooms: An Inc. survey found that most employees preferred more of an open office floorplan. This allowed them to communicate more freely with other employees, which helped stimulate collaboration. When the time came for more dedicated group work, employees preferred their office to have small meeting rooms where teams could gather and hammer things out.

• Library and game rooms: A Squarefoot survey found employees desired community game rooms and a library where people could take a break from their work. These rooms could include books and magazines for people to share, community tablets for enhanced learning and general entertainment options so people could "turn off" from work for a while before returning.

• Eating options: A Forbes survey found making eating options available in a community setting on-site was something employees desired. This was especially true if the office building offered a variety of foods and healthy eating options.

• Wellness spaces: There has been a big push toward all-around wellness at the office in recent years. This includes not just physical wellness outlets in the form of gyms but also mental wellness in the form of meditation booths, yoga studios and nap pods, as a CNBC report detailed.

Are these things that employees—and, therefore, tenants—still desire post-pandemic? That's hard to say.

At least initially, one could surmise that indoor community spaces that weren't disinfected after each person's use wouldn't be something people would desire. Nap pods, for example, don't sound all that attractive with the germs that could remain on bedding after someone slept.

Beyond the quirky nap pods, though, how big of a role will open floor plans play? Is this something people will still desire? Or will tenants want to go back to divided spaces? Will they want smaller spaces initially and then desire open spaces down the line? And if so, how long will that last?

Food options would seem to be a feature that would remain desirable. But, how would those food options change? Will a traditional cafeteria with a buffet line work? Will employees only want fresh food that's been individually wrapped and packaged?

Some have suggested that businesses will move away from large office spaces, breaking up their employee base into multiple smaller satellite offices instead. Some have even suggested that businesses could opt for leasing co-working spaces for a majority of their employees and house only a select small group of employees at a stable office.

Others, meanwhile, believe the exact opposite will occur. They believe the pandemic will be the death of the shared co-working space.

So, what is it? The point is that no one really knows exactly what the office of the post-pandemic world will look like. It's likely that a focus on general cleanliness and disinfectants, air quality and outdoor spaces will continue to be desirable.

Beyond that, it's tough for building owners in the office space market to make sizeable investments in other aspects of their building. It's tough to make a bet on gyms, yoga studios, cafeterias, libraries, quiet spaces and open floor plans without knowing what tenants will truly desire. 

When the Pandemic Will End (or At Least Subside)

The other unknown variable for the office space market is the pandemic itself. It's generally accepted that it will come to an end at some point, but when it ends—and exactly how it ends—isn't as certain.

Will it be when the weather warms up in spring? Will it be when a vaccine is distributed to the masses? If so, when will that be?

COVID-19 has been an ever-evolving situation in the United States for the last seven months. The spring peak happened on April 24, when 36,741 new confirmed cases of coronavirus were recorded. 

After weeks of declining totals, numbers began to rise again in mid-June. The peak of the "second surge of the first wave" occurred on July 16, when 75,687 new confirmed cases were recorded.

A slow but steady decline followed once again for the remainder of the summer.

Now, we're on a spike again. Medical experts are warning that the true second wave is here, with cooler weather forcing gatherings indoors. And the data backs those claims. On October 16, 70,464 new confirmed cases were recorded, rivaling that of the mid-summer peak.

Different regions of the country are likely to be impacted by the pandemic through the winter and into the spring of 2021 -- just as they have been so far. Future lockdowns or restrictions will likely vary by region as well.

Exactly where that impact will occur the most is uncertain, though. This again means it's difficult for a building owner in the office space market to plan investments to attract tenants.

THREE MORE THINGS
WE KNOW

Technology Plays a Huge Role in Employee Choices

In 2016, millennials became the largest generation in the labor force in the United States, when they surpassed Gen Xers. In 2017, U.S. Census Bureau data showed 35% of the total U.S. workforce was Millennials. There were 56 million Millennials working or looking for work, compared to 53 million Generation Xers (33%) and 41 million Baby Boomers (25%).

Generation Z’ers, who were born between 2001 and 2020, are also beginning to work as well. They accounted for 5% of the total workforce in 2017.

In just a few years' time, it's predicted that Millennials and Generation Z’ers will account for almost the entire workforce. By 2025, it's predicted that Millennials alone will account for roughly 75% of the global workforce.

These cohorts are extremely important for businesses. Catering to how they like to work—and what makes them most productive—will be essential to not only tenants by building owners in the office space market who provide that office space.

The majority of people in these two generations are technology focused. They rely on digital formats of communication such as Instant Messages, texts and email. This is especially true of the younger Millennials and all of Generation Z’ers.

A recent study conducted by Microsoft and SurveyMonkey found that 93% of Millennials believe a company having up-to-date technology is vital when they choose a workplace. What's more, 42% say if a company had "substandard technology," they'd leave that company.

A 2019 study on smart buildings published by building research firm Memoori explained what this means for companies:

“For organizations seeking to attract and retain the top young talent, embedding smart into the design and operation of a building can act as an indicator of the company’s culture and aspirations. Given that the cost of replacing staff can heavily outweigh the cost of space, many companies now view investments in flexible, digitally-enabled workplaces as a cost-effective way of retaining top talent.”

Some ways companies can cater their workspaces to younger generations are to use automation powered by Artificial Intelligence; integrate digital tools for communication (other than email) and project management; and offer job training, education and growth opportunities through online resources.

Missed Opportunities Can Be the Death of a Business

Let's go back to where we started for a minute, and dive a little further into the effects of the three missed opportunities we summarized.

1. In the early 1970s, Steve Wozniak was employed by Hewlett-Packard. At the time, he petitioned his bosses to invest in a personal computer that he was creating. The company said no thank you, as they didn't believe people would ever use computers in their home.

Wozniak believed so much in his creation that he partnered with his friend Steve Jobs to bring the idea to fruition. The computer they created in a garage was the Apple I.

In August, Apple Inc. became the first publicly-traded company in the United States to reach a market cap of more than $2 trillion. While HP is no slouch itself—it's valued at almost $27 billion—it's a far cry from what it could have been had it invested in Wozniak's personal computer.

2. In 1999, Sergey Brin and Larry Page approached the CEO of Excite, George Bell. They were offering him their search company for $750,000. Bell didn't bite on the offer, but it certainly came back to bite him later.

Brin and Page's company, which ultimately became Google, has made a few advancements since then. In January, its parent company, Alphabet Inc., reached a market cap of $1 trillion, becoming only the third tech company in the country valued that high.

Excite, meanwhile, was eventually purchased by Ask Jeeves—remember them?—in 2004. The company is still technically around today, but it's a far cry from what Google is.

That wasn't the only missed opportunity for a large company to acquire Google, though. In 1998, both AltaVista and Yahoo turned down the $1 million offer to buy Google.

Yahoo eventually realized the mistake it had made and tried to acquire them for $3 billion in 2002. Google countered with a $5 billion. Yahoo turned them down again.

The $5 billion price tag was 5,000 times greater than the 1998 offer to Yahoo. But, it still would have been a monumental deal for Yahoo 18 years later.

In fact, Yahoo itself was acquired by Verizon Communications in 2016 for $4.83 billion.

3. In 2000, Reed Hastings' mail-order entertainment company needed a cash infusion. To find it, he approached John Antioco, who at the time was the head of Blockbuster. Blockbuster ruled the home entertainment industry, and Hastings hoped Antioco would see the value in what his company had to offer.

Antioco didn't agree.

The story goes that Antioco laughed at Hastings' ask of $50 million for his company. Blockbuster's head found it hard to imagine that this "niche business" would ever be able to grow into something that would consistently turn a profit.

Boy was he wrong.

Hastings' company, of course, is Netflix. Over time, the company grew from providing mail-order DVDs to becoming the world's leading video streaming subscription platform.

Netflix is one of the few companies to benefit from the coronavirus pandemic. In April, Netflix reached a valuation of $194 billion, making it more valuable than Disney.

The story for Blockbuster, meanwhile, couldn't be more different. Blockbuster initially filed for bankruptcy 10 years after it passed on buying Netflix, and today, it only has one store remaining in the entire world.

Not all missed opportunities are as jaw-dropping as these three. Not all of them make headlines.

But missed opportunities are the cause of business failures every day in every industry.

As a building owner in the office space market, you are currently at a crossroads during the coronavirus pandemic. The decisions you make now will have ever-lasting effects on the future of your business. Not investing in and capitalizing on an opportunity today can result in you missing the boat tomorrow—and never being able to recover.

Network Connectivity is the Most Future-Proof Investment You Can Make

In an uncertain world for building owners in the office space market, one thing you can certainly count on is that network connectivity is the most future-proof investment you can make.

You can't say with certainty whether your tenants will still want gyms.

You can say with certainty whether they'll want on-site catering.

Or more open community spaces.

Open floor plans or more sectioned-off cubicles.

You can't say with certainty whether your tenants will demand touch-free technology for building entry.

For elevators.

For doors.

You also can't say with certainty which tenants will want which things … and which ones won't care … or, worse, will shy away from them.

But what you can say with certainty is that all tenants will want strong, reliable connectivity. Actually, they won't just want it, THEY NEED IT!

U.K. infrastructure firm Sudlows put it best:

"Powerful and reliable network connectivity keeps the world running and this is no different for any organization (sic). Whereas once a temporary loss of the connection for a system used to be nothing more than an inconvenience; any downtime in the modern day, is now a major issue that could lead to significant financial and commercial losses.

"The need for fast and resilient fibre (sic) connectivity isn’t the only thing that’s changed. As organisations (sic) move several of their key systems on to IP technology platforms, they need connectivity that they can absolutely rely on. Take phone calls, for example. With many businesses now using VoIP (Voice over Internet Protocol), the demand for a strong connectivity infrastructure continues to grow as any errors or downtime will lead to a business not being able to make calls – something which can cause a serious loss of revenue to a company like a call centre (sic).

"The rapid pace of converged technology within Smart building architecture can be increasingly seen with the deployment of intelligent lighting, access control, CCTV and AV solutions. Such technology is increasing the demand and usage of the core infrastructure from fibre (sic) backbone connectivity, right down to the edge network of structured cabling.

"There is also the issue of BYOD (Bring Your Own Device) to accommodate within organisations (sic). The move towards a workplace where employees bring in their own devices and connect to the company network creates additional requirements for a connectivity infrastructure, such as the ability to handle and adapt to a wide range of devices, including multiple operating systems and WiFi enabled mobile devices."

THE ONE THING YOU
MUST DO NOW: INVEST
IN CONNECTIVITY—
BEFORE IT’S TOO LATE

In this uncertain world, there's only one true smart investment you can make as a building owner in the office space market: Network connectivity.

It's what all tenants will demand in the current climate, and in the post-COVID world.

There's no other investment that you can make as a building owner in the office space market that will guarantee to bring you returns.

There's no other investment you can make that will meet the needs of all your tenants.

There's no other investment you can make that will, undeniably, be required no matter what the future holds.

As the business world takes a wait-and-see approach to the office space market, you don't have the luxury of doing the same. You must act now to ensure that your building is ready to meet your tenants' needs at the exact time they need it … and in this uncertain time, you have no way of knowing exactly when that might be.

Don't let this become your HP, Excite, Yahoo or Blockbuster moment. Make the sure bet in internet connectivity today before your competitors -- and future tenants -- pass you by.