The allocation of back office and front office functions at different addresses is one of the most widely used strategies in the corporate real estate market among medium and large companies, as it is a possible way to reduce operating costs.
This approach has led some companies to rethink the way they structure their offices, especially those with customer service demands and large support teams.
How do you know if segmenting offices into back office and front office is advantageous for your business? Evaluating the pros and cons can help you understand whether this strategy is the best option.
How have back office and front office offices been adopted?
The most common division is the segmentation of activities into:
• Administrative and support functions (back office)
Offices with the best cost-benefit ratio, not necessarily in overvalued regions, but still well located, perfectly meet the needs of back office activities.
• Customer service (front office)
Class A offices in upscale areas house customer service teams. These spaces are entirely focused on user experience and aim to create a good corporate image for the company.
XP recently announced a second office in the city of São Paulo, now in the Luna building, in Chácara Santo Antônio. The new 12,000 m² space will allow XP to maintain its hybrid work model, but with a focus on greater face-to-face interaction.
Advantages of segmenting back office and front office
Cost reduction, especially with rents
Companies are moving their back office to addresses with lower operating costs, in regions below the most valued, since they can take advantage of the good supply of properties and, consequently, lower rents.
This helps to reduce expenses with administrative functions that do not need to be physically close to the customer.
Operational efficiency
Each team can specialize and work with a greater focus on their specific areas.
With a dedicated front office, for example, service becomes more agile and personalized. In this way, the customer becomes the priority, increasing satisfaction.
Disadvantages of segmentation
Possible loss of synergy between teams
Physical separation can hinder interaction between employees, since it can impact collaboration between areas and the integration of internal processes. More alignment actions may be necessary.
Logistics costs
It is necessary to assess the logistics demand between offices, as in addition to reducing the agility of processes, this can generate unplanned costs.
How does this practice impact the corporate real estate market?
Companies that adopt this model of front office and back office offices tend to seek properties with different characteristics for each operation:
Front office: class A and A+ properties, in strategic locations, with excellent access and cutting-edge infrastructure to receive clients.
Back office: spaces more focused on collaboration, prioritizing integration between teams.
The adoption of strategies to segment offices into back office and front office can create opportunities in the corporate real estate market, both for companies to rethink their occupancy and for property owners to offer their solutions.
Who can benefit from this strategy?
The effectiveness of this practice depends on the characteristics of each company. Businesses with strong integration between areas may encounter challenges in separating offices, while more structured organizations can benefit significantly from the division.
Explore our office page and learn about the most valued regions of São Paulo, such as Faria Lima, and Rio de Janeiro.
