We are seeing the largest contraction in lease lengths across the board. The CRE asset class has shifted from being one of the most stable contract markets, to shorter tenancies across the board. Leases now sit at an average of 34 months. That’s even shorter than most car leases. It makes sense for landlords to reframe the way they look at brick and mortar (View Highlight)
Coined real estate as a service, and more commonly referred to as space as a service (SpaaS), asset owners are beginning to view delivering space based on changing demands. In fact, the most forward-thinking buildings are going one step further. We already see them utilising available technology to map out the user journeys of tenants, to service their needs better. (View Highlight)
Take the morning commute, with fairer conditions brought about by the seasonal shift, buildings can work directly with their occupiers to offer flexible cycle parking capabilities. As a landlord, square footage is the asset. Being able to track active users of an amenity like bicycle parking means decisions on whether to repurpose space for other functions, becomes a data-led exercise. It’s a two-way benefit. Users are able to park, and find their bike, whilst building managers can monitor space utility. In one of our buildings, the landlord was able to recognise abandoned cycles, meaning spaces could return into circulation. The same paradigm exists for lockers. (View Highlight)
This fits into a wider conversation around routines. Data has shown that landlords that are able to cater to user routines, such as sustenance and fitness, enjoy significant premiums on rental (over 70%), as well as better occupancy rates. (View Highlight)
Catering to these routines plays a crucial role in bringing people back to the office. Companies successfully enticing their workforce to return onsite are striking the right chords when it comes to providing comfort, safety, utility, and community. Afterall, Maslow’s hierarchy of needs is universally applicable to the smallest startups, all the way up to the largest corporations. (View Highlight)
SpaaS falls in line with sustainability. Smart buildings, which are the leading SpaaS environments, keep tabs on occupancy, energy and emissions data. By offering flexibility on space usage, occupiers can make data-led proactive decisions to meet ESG targets. (View Highlight)
