As occupiers’ requirements, expectations and demands set new benchmarks, landlords cannot stand idly by. This new paradigm requires property owners to adopt a fundamentally different approach to leasing and asset management.
Here are four ways for landlords to future-proof their office portfolios.
- Provide space as a service on demand. Landlords should capitalize on the shift to flexibility and create a blended space offering at the building and portfolio level. Securing flexible space operators as tenants is the most direct approach, although landlords wishing to exert greater control over their end-user profile, services and experience can create and operate their own flexible space platforms as an amenity and component of their overall portfolio.
- Differentiate buildings by offering curated experiences. In addition to parking spaces and food and beverage offerings, occupiers are increasingly demanding conference and meeting management services, gym and fitness spaces, and other wellness amenities.
- Integrate wellness into building design. Although wellness in the workplace is not a new concept, it has only recently begun to inform building design. While this can include the basics such as providing natural light and high-quality air, designs should ideally incorporate biophilic features to enhance the connectivity of building occupants to the natural environment through direct and indirect nature and space and place conditions.
- Adopt intuitive technologies to improve tenant engagement. Technology is a key point of differentiation. Tenant engagement platforms such as Host by CBRE can help property landlords create customized workplace solutions by integrating property services and amenities with digital technology.
By providing an environment in which going to work becomes a curated experience, landlords can begin to operate their offices as if they were full-service hotels. In many respects, the landlord’s primary customer is becoming the employee, and not the tenant.
The trend towards the hotelisation of real estate will require a more hands-on and intensive approach, but will help build stronger relationships with occupiers and better meet their needs, enabling landlords to improve tenant retention, command higher rents and create future-proof portfolios.
For more on this, read CBRE’s full report, "The Hotelisation of Office Space – New Approaches to Future-proofing Commercial Portfolios."