Real estate is facing the sharp end of social, demographic and technological change.
The industry is experiencing unprecedented disruption. From space-as-a-service to the growing use of data analytics, new business models are rapidly emerging – driven by basic changes in how people live and work, and a raft of new customer expectations. Real estate industry leaders are re-thinking what it takes to stay relevant in this fast-shifting landscape.
Evolving customer expectations shape the Real Estate market
Commercial real estate is changing. While ‘location, location, location’ and square footage are still the foundation for creating value in the sector, customers are expecting more – both from the space itself and from its surroundings. Single-use residential blocks, suburban office parks and out-of-town shopping centres, once the norm (and intimately bound up with our reliance on cars) are fast becoming outdated forms of development.
The boundaries between our professional and personal lives in today’s hyper-connected world are shifting. The traditional workplace is now somewhere where colleagues and associates come to engage, relax and even live, not just work. Buildings are now expected to meet multiple demands, and occupants want more flexible tenancies: enter the space-as-a-service model. It’s all about serving the experience users are after, not just providing four walls and a roof. Space-as-a-service offers short-stay options for mobile professionals and longer-term home/office apartments, along with common areas to eat, collaborate, meet, create and socialise.
Shifting customer expectations are reshaping the focus on how the building is used and how well it performs. This is becoming as important as the physical building itself.
Rethinking technology use
New customer demands and associated business models such as space-as-a-service need more diverse technology investment and new skill sets. Key skills include the analytical capabilities to make the most of a profusion of real estate “performance” data, collected from the users of buildings, the buildings themselves and the surrounding environment. The real estate industry will invest in evaluating data in areas such as tenant satisfaction, environmental performance, health and wellbeing. From professional training to performance management, it’s vital to develop a clear understanding of these metrics and their implications of how real estate operates.
Changing human behaviour, technology and the evolving demands on the built environment are driving a rethink of the world of real estate from four different perspectives: as a product/service, as an investment asset class, as part of society’s critical infrastructure and as an industry sector.
How RRD is supporting real estate
Real estate clients are becoming as brand-conscious as sectors such as telecoms or retail, with people and organisations making location and property choices based increasingly on the brand strength of the business owning and operating the real estate.
As a leading provider of outsourced communication and business services, RRD works with many real estate conglomerates. Our experience in the sector means our teams have a deep understanding of the ongoing compliance and business challenges you face. And our experience of establishing and supplying digital engagement services will help you move the real estate experience your customers expect to a new level. Read more about how our services can help your business.