Last week, at CREtech NY, commercial real estate (CRE) experts gathered from around the world to learn and collaborate with one another. Building Engines joined the discussion to see how technology is making an impact at properties.
We’ve got the roundup on the top three trends you need to keep your eyes on. Read on to learn how CRE owners and operators can establish relevant and unique buildings.
1. Creating a Frictionless Culture
As CRE evolves, tenants are increasingly seeking more flexibility in their workspace. And a future-ready portfolio is helping to meet these changing market dynamics and growing demands. With that, CRE landlords need to understand their customers’ needs and work alongside them to solve problems and remove friction.
Many tenants want amenities from their buildings. And many landlords are having to reflect: What amenities are tenants using? What spaces are the most occupied in the building? Is there indoor air quality (IAQ) monitoring throughout the building?
As more and more people return to the office, tenants are looking to landlords for direction. Christa Collier, Director of Asset Management, Workplace Experience Strategy & Design at Columbia Property Trust, said at CREtech NY, “[Landlords] have to provide the space and facilities that makes the most sense for a CEO to create the culture they want for their employees; we have to create a frictionless culture.”
Property tech solutions are helping to do exactly that – remove friction. Because while return to work is a difficult topic for various reasons, it’s a matter of maintaining culture and creating spaces for collaboration.
“It comes down to due diligence and accepting the idea that you no longer can just look at ceilings, flooring, demising walls, you need to look at the digital infrastructure and factor in how you’re going to operate the building, how people in the building are going to operate,” Collier said.
Tech plays a major role in day-to-day operations and is helping to solve the growing pains that come with future-proofing properties and creating a frictionless culture.
2. Managing Evolving Tenant Expectations
Workplace occupancy has certainly shifted, but how will it continue to evolve?
“A lot of tenants are more educated in the expectations and type of relationship they need to have with their landlord. Landlords need to also say, ‘What can we do to tap into more programs and share.’ Tenant experience (TenEx) is not about a free coffee, it’s about sharing data and making spaces more connected,” said Arsha Cazazian, Director of Global Real Estate at Shearman & Sterling, LLP.
Key takeaway here: foster collaborative relationships between tenants and landlords to improve overall satisfaction.
Every tenant is different and so are their needs. Landlords need to learn and listen to be able to evolve alongside their tenants. If your property looks, feels, and acts the same way it did 10 years ago, you’re doing something wrong. It’s important to understand what matters to tenants now.
“The aesthetics matters. Color matters, light matters – all of these are important,” Cazasian said.
And it’s important to keep a pulse on tenant expectations – because they’re always changing. With tenant experience technology, landlords can better understand their properties and how their tenants interact with it.
How exactly can occupancy and interaction at a property really be measured though? It starts with engagement rate. Factors that may affect engagement rate include IAQ, temperature control, visitor access, amenities, and more. So, it’s not until when landlords fully understand how their spaces are being used will they be able to maximize engagement rate at their property.
“[Landlords] have to provide the space and facilities that makes the most sense for a CEO to create the culture they want for their employees; we have to create a frictionless culture.” – Christa Collier, Columbia Property
3. Building Tenant Ecosystems
With the shifting workplace demands, landlords are curating amenities and services that support tenants and in turn, are creating unique ecosystems. But what data is available to guide these decisions? And how can CRE owners and operators get ahead of the curve?
Establishing a tenant-centered ecosystem at a CRE property begins with understanding the current ecosystem, or digitized tenant experience (TeX). This can mean:
- Access control for security, visitors, parking
- Space booking/reservation
- Building-wide news alerts and communication
- Digital work order requests
- ESG reporting
Data is the key to designing ecosystems. Using predictive insights is how landlords are able to make data-driven decisions. By using technology to collect information from tenants, landlords can connect with their tenants and inform them of important building news. Setting up these feedback loops establishes positive innovation and change. Property tech solutions are connecting buildings with data by constantly testing and measuring tenant satisfaction. Using technology for TeX is not only a competitive differentiator but a meaningful way to create a tenant ecosystem.
Understanding CREtech NY Insights: What’s Next?
After learning all the valuable insights presented by experts in the CRE industry, CREtech NY emphasized the importance of property tech solutions.
Proptech is not only for property teams and landlords, but it supports tenant experience as well. To be able to compete in the ever-changing industry, CRE owners and operators need to reflect on their current tech efforts and how they can be maximized going forward.
Technology at CRE properties means many things – digitized work orders, proper HVAC maintenance, enhanced tenant experience, and more. Reach out to an expert today to see how your property can benefit from tech solutions.
