Real estate industry is facing major changes due to transformations in tenant dynamics, customer demographic shifts, and technology implementations in executive offices to allow improved service and amenities. These are some of the adjustments real estate must face.
Offices with various environments: Many executive offices retain yesterday’s corporate structure, where the main objective was to create proximity among employers to ensure productivity and efficiency. The challenge will be on creating different environments inside that hierarchically designed building, for employees to choose their workplace depending on their needs. Plus, incorporating technology and design in such a way that workers feel attracted and inspired in their office.
Executive suites that “put on your shoes”: Offices are now investing a large amount of money to become “intelligent workplaces”. This will not only facilitate processes but also respond to tenants’ needs as individuals. In other words, executive offices are projected to become empathetic buildings that will ultimately know what you like to eat for lunch, when do you usually stand up for a break, and who do you talk the most to in the office.
This means that “traditional real estate decision makers need to engage with PropTech companies in order to adapt to changing global environment”.
Redefined amenities: Amenities that are nowadays sold as the latest hit will become a must in office leases. For example, coffee bars, beers on Friday and monthly breakfast will be expected by tenants. Instead, amenities regarding health and wellness will be asked by them. Those services that support mental and physical health at work by aligning workplace and HR strategy. Therefore, office buildings must provide other amenities such as indoor air quality, thermal comfort, on-site gym and healthy vending machines. The good news is, this is an opportunity for the commercial real estate because they can help find companies of all sizes the benefit of a great workplace design and service.
Brokers new role: People that work in the real estate industry will need to negotiate not only price but better workplace experiences (design, amenities, services, and technology). Besides from finding a great deal for tenants, they must also search for executive offices that will make companies’ employees happy. This is because buildings will become an epicenter for communities to share passions, experiences, and ideas.
Green buildings: Culture has shifted to a more “green-ethos”, with architectures, tenants, and landlords all looking for sustainable options. In an article by Principal Global in late 2017, they stated that “it is a growing belief among investors that good sustainability performance is a proxy for good investment management and raises awareness on what is material in commercial real estate.” That’s why real estate investors are seeking to meet sustainable building certifications.
On-Demand Access For Renters: People looking for property expect a real-time service. Meaning they want immediate tour confirmations, extra information, and to have the lease mailed before even looking at the space.
Other trends that must be considered by the real estate industry are:
- 34% of employees work at least once a month from third places such as internet cafes, public libraries or coworking spaces.
- 48% of CEOs plan to enter new strategic alliance or joint venture.
- 97% of large companies stated that open innovation is important or critical to higher levels of future business performance.
- 60% of the workforce nowadays switches employers after only four years.