Initial Considerations for Occupiers:
- Commit to long-term requirements you know are reasonably certain, and explore flexible space solutions for the rest.
- Focus on density and mobility in the workplace over traditional per-seat metrics.
- Design a workplace based on functionality for today and adaptability for the future.
- Invest resources into technology-enabled amenities, services and programming focused on the employee.
- Choose landlords committed to enhancing the overall experience of the building.
BUILDING AGILITY INTO REAL ESTATE STRATEGIES: THE OWNER/INVESTOR
For owners and investors, agile real estate strategies incorporate long-term leases with a mix of other solutions to create long-term value and near-term stickiness for their assets. The most savvy are taking a more active role in finding and executing solutions that increase asset utilization and deliver dynamic experiences to attract the most demanding and desirable tenants.
Agile assets incorporate:
- EXPERIENCE-LED AMENITIES, SERVICES AND PROGRAMMING, supported by technology, that offer substantive value to tenants beyond building location.
- DIVERSE LEASE MODELS that range from long-term traditional leases and short-term turnkey solutions to on-demand, shared workspaces.
EXPERIENCE-LED AMENITIES, SERVICES AND PROGRAMMING
The power of place to draw employees is a key attribute that tenants factor into their building-selection decisions. Today, real estate owners and investors are providing tenants with high-value, high-efficiency amenities, including meeting spaces, fitness facilities, catering and concierge services, to attract them to their assets. The owner and investor value proposition has become greatly enhanced and serves as a critical differentiator.
Landlords are delivering these offerings directly or through third-party operators. These operators, along with a constant wave of emerging technologies, are driving this experience-led, on-demand, new reality for real estate. And many landlords believe these new offerings are contributing to significantly faster leasing velocity within their buildings.
DIVERSE LEASE MODELS
Landlords play an integral role in enabling environments where larger organizations can achieve the right balance of leasing models. In conjunction with traditional leases, flexible-space solutions can help organizations looking for speed to market, simplicity of transaction and ability to scale in response to market demand. Today, most see the locational suitability and impact for flexible-office provision being greatest in global gateway cities, with far lower assessment for fringe locations and smaller cities.
Initial Considerations for Owners and Investors:
- Build shared amenity floors that promote efficiency within traditional, tenant-leased environments.
- Provide the technology that tenants need to be successful and employees need to be engaged.
- Commit to the tenant experience journey through amenities, services and bespoke programming.
- Consider flexible space solutions to support evolving tenant demands.