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How Hybrid Work is Reshaping Major Cities and Your Marketing


As the world continues to cope with the impacts of the pandemic, many businesses are shifting away from standard office operations and embracing a more hybrid work model. As we adjust to this new reality, it is becoming increasingly evident that there will be long-term changes in urban environments as vacant spaces begin to outnumber occupied ones in major cities across the globe.

For marketers planning an effective strategy for their business or product launch, these changing dynamics present both challenges and opportunities. Read on to find out how you can use these trends to your advantage while avoiding common pitfalls.

What hybrid work means for major cities -

Decreased demand for office and retail space, shift in how businesses manage physical spaces.

Hybrid work has had a big impact. People have moved away from cities and their shopping habits have changed too. For example, in the two years between 2020 and 2022, NYC lost 5% of its population and San Francisco lost 7%. There are lots of empty places in cities now. And not many people walking around stores like before the pandemic - it is still 10-20% less than normal.

The number of people wanting to rent office or store space in big cities will be lower than before the pandemic. In one of the scenarios we studied, it could be 13% lower by 2030 compared to 2019. In a worst-case scenario, the most affected city could have 38% less demand for rented spaces.

Real estate is local, and demand will vary substantially by neighborhood and city. Demand may be lower in neighborhoods and cities characterized by dense office space, expensive housing, and large employers in the knowledge economy.

The rise of hybrid work has spurred significant changes in major cities across the country. With many residents no longer tethered to traditional offices, urban cores are experiencing a decrease in demand for commercial real estate as people shift their shopping and living patterns.


The effects have been particularly prominent in cities like New York and San Francisco, where populations have declined by as much as 7 percent. Additionally, vacancy rates have increased, and foot traffic near stores remains below pre-pandemic levels.

As a result, experts anticipate that demand for office and retail space in major cities will continue to fall in the coming years. Although the impact varies by location and industry, it's clear that hybrid work is driving a significant shift in how we use and manage physical spaces in cities.

How to adjust digital marketing strategies accordingly -

Different ways to target potential customers who are now spread out across multiple locations, the importance of local SEO tactics, etc.

As the digital landscape continues to change, businesses need to adjust their marketing strategies accordingly. With potential customers now spread out across multiple locations, local advertising has become increasingly important. Investing in location-based ads can help drive traffic to the store based on consumers who are near the business.

Google Trends data shows rising interest in local advertising, indicating that more marketers and businesses are recognizing the importance of this type of advertising.

To make the most of these tactics, it's also important to focus on local SEO to ensure that your business appears in local search results for potential customers in your area. By targeting potential customers based on their location, businesses can reach new audiences and drive more traffic to their stores.

Physical marketing strategies that can be used to reach potential customers even when they're no longer concentrated in one area - utilizing billboards and drive-by marketing campaigns, experimenting with influencer marketing, etc.

If your business is not reliant on your customer's location, many display networks allow targeting ads based on users' interests, demographic, and behavior. Using such targeting criteria unique to digital advertising will allow businesses to reach a broader audience pool that could potentially convert to customers.

In today's digital age, businesses are increasingly adapting to new marketing strategies that enable them to reach out to potential customers, even without a concentrated customer base in any one location.

From billboard and drive-by marketing campaigns to exploring the influencer marketing space, there is a wide range of physical marketing strategies that can effectively reach customers far and wide.

Additionally, businesses are now taking advantage of cutting-edge display networks that are tailored to target ads based on user interest, behavior, demographics, and other factors unique to digital advertising.

This shift presents a tremendous opportunity for businesses to broaden their reach and connect with a larger audience pool, ultimately resulting in greater customer conversions and business growth.

Opportunities for businesses with physical stores or offices -

Creative ways to use the space that's available while still keeping shoppers safe and comfortable, leveraging technology solutions such as contactless payment systems and virtual tours, etc.

As businesses slowly start to reopen physical stores and offices, they are faced with the challenge of adapting to the post-pandemic world. Luckily, there are creative ways to utilize the space while still keeping shoppers and employees safe and comfortable. Implementing technology solutions such as contactless payment systems and virtual tours can not only enhance the customer experience but also reduce physical contact.

For example, customers can easily view products using a virtual tour without having to touch them. Additionally, businesses can redesign their stores to create more space for social distancing and to prioritize the safety of shoppers. By embracing these changes, businesses can not only stay afloat but also thrive in the new normal.

Strategies for adapting to this new reality -

Setting realistic goals and timelines based on the current circumstances in each city or location, understanding customer behavior changes due to this new way of working, etc.

With current global circumstances, individuals and businesses alike need to adapt to the new reality. One key strategy to consider is setting realistic goals and timelines based on the unique circumstances in each city or location. It's also crucial to understand the changes in customer behavior that have arisen due to this new way of working.

Whether it's shifting business models, embracing digital channels, or finding new ways to connect with customers, adapting to the new reality is a must. Though it may not be easy, taking a holistic approach to rethinking business strategies can lead to success in this ever-changing environment.

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Marketing Strategy

Kris Twitter

As a data journalist, I enjoy curating and analyzing marketing trends, and data. The things that fascinate me the most are the transforming business landscape due to evolving marketing technologies.