When market conditions change faster than lease terms, how do you build a workplace strategy that actually sticks? This question dominated our recent webinar with two real estate leaders who've learned to thrive in unpredictable times.

Matt Vannucci, Senior Director of Global Real Estate and Workplace Strategy at Hydrafacial, and Kenneth Carney, Executive Director of Global Real Estate and Office Operations at People Inc., joined us to share the frameworks they've developed when traditional planning doesn't match business reality.

Their approaches couldn't be more different—but their core insights reveal what's actually working in 2025.

When Getting Hands-On Saves More Than Money

Matt's transformation from having dedicated project managers to managing contractors directly reflects a broader shift happening across organizations. "For smaller projects, I'm kind of being my own project manager," he explained. "Can I do that half as good as them? Probably. 80%? That's a win for me."

The "scrappy" approach extends beyond project management. At Hydrafacial, they've started doing more painting in-house, bought a power washer to eliminate quarterly vendor visits, and purchased a floor scrubber for their warehouse. Matt's team even tackles ant control before calling exterminators.

"We control our fate on how our warehouse looks," Matt said. This shift from vendor-dependent to self-reliant operations demonstrates how constraints can drive creative problem-solving.

The financial impact is real. By eliminating project manager fees on smaller builds, Matt saved $100K on a recent project. But the benefits extend beyond cost savings—it's building internal capability and reducing dependencies on external vendors who might become unavailable or prohibitively expensive.

The "Surgical Approach" to Portfolio Optimization

Kenneth's strategy at People Inc. centers on what he calls a "surgical approach rather than broad cuts." When the company grew from 300 to 4,000+ employees through acquisitions during COVID, they inherited a massive real estate footprint that needed optimization.

Instead of blanket reductions, Kenneth focused on strategic consolidation around three core hubs: New York City, Des Moines, and Birmingham. Every other office was evaluated based on its contribution to business success, not just its cost per square foot.

"Just because you can save a million dollars a year by closing this office over here, you may have to spend another million dollars or two million dollars somewhere else to accommodate the fact that this office no longer exists," Kenneth explained.

The approach has evolved their real estate function from cost center to strategic partner. Kenneth now participates in acquisition discussions from the beginning, helping leadership understand the real estate implications before deals are finalized.

Why Flexibility Beats Mandates

Both leaders have moved away from rigid return-to-office policies in favor of manager-led flexibility. Matt's organization leaves workplace decisions up to managers, while Kenneth implements a "3 means 3" policy where employees choose any three days to be in office.

The shift required different management skills. "I want the managers to know how to manage their hybrid workforce and remote people, because it's different," Matt noted. "These people could be taking naps and things, so you need to know how to manage these people at home."

Kenneth's approach focuses on creating space types that match how different teams actually work. Sales teams wanted flexible, collaborative areas without assigned desks. Engineering teams needed quiet spaces with multiple monitors. The solution: tailored "neighborhoods" for each function.

Data That Actually Influences Decisions

When asked about persuasive analytics, both leaders emphasized practical metrics over theoretical frameworks. Matt introduced "revenue per square foot" calculations that connect real estate decisions to business outcomes. "When I can say, okay, this location—I've talked to sales, I've talked to marketing. We surmise that this location will garner us this much additional revenue."

Kenneth focuses on the economic impact of each location rather than simple cost reduction. People Inc. has started generating revenue from their event spaces, hosting external events that leverage their brand portfolio (People Magazine, Food and Wine) to offset real estate costs.

Both leaders present leadership with solutions, not just problems. Matt brings "good, better, and best" scenarios with built-in optionality. Kenneth evaluates the butterfly effect of any portfolio changes before recommending action.

The Experience-First Office Design Revolution

Perhaps the most striking shift both leaders described was moving from facilities management to experience optimization. Kenneth's team literally rebranded from "facilities organization" to "office experience organization."

At People Inc., they eliminated almost all private offices, including for senior leadership. Former executive offices became team collaboration rooms, freeing up bookable conference space and increasing senior leader visibility. "A few months later, the mind shift really took place, and everyone's like, oh, wow, this is actually so much better. I can see my team every day."

Matt's approach involved creating dual-use spaces that function as training classrooms during esthetician sessions and office space when employees are in. The flexibility required different furniture and portable power solutions, but it's maximizing space utilization beyond what traditional office design allows.

Planning Horizons That Match Reality

Both leaders have shortened their planning timelines to match market volatility. Matt now plans 1-3 years out instead of the traditional 5-10 year commercial real estate cycles. "I can't see beyond 3 years right now, unless it's a flagship location."

Kenneth's organization operates under the philosophy of "solve today's problems today, and tomorrow's problems tomorrow." While this creates tension with real estate's traditionally long-term nature, it allows for more responsive decision-making when conditions change rapidly.

The approach requires building optionality into every decision. Whether it's lease terms, space design, or vendor relationships, both leaders prioritize flexibility over efficiency optimization.

The New Normal: Iteration as Strategy

What emerges from both conversations is that iteration has become a legitimate workplace strategy. Kenneth described their approach as "drive at the crash and see what happens," emphasizing that failure isn't necessarily negative if you learn and adapt quickly.

This represents a fundamental shift from the pre-pandemic approach where workplace strategies were set and rarely adjusted. Now, both leaders expect continuous refinement based on business needs, employee feedback, and market conditions.

The companies succeeding in this environment treat their workplace strategy like a product—constantly testing, measuring, and iterating based on user feedback and performance data.

The bottom line: The most effective real estate strategies today come from leaders willing to get hands-on, prioritize experience over efficiency, and build adaptation into their planning process. In uncertain times, the ability to pivot quickly matters more than having the perfect long-term plan.