The Impact of Workplace Experience Technology on Asset Strategy
One of the main values of any workplace is its ability to provide a good experience, day in and day out, for its occupants. Because of this, landlords and owners frequently look for ways to optimize the modern building systems (HVAC, elevator, and security) in order to provide the most comfortable, frictionless experience. But the physical building is only part of a workplace experience, especially since we spend so much of our time interacting with our digital, connected devices. In order to enhance their buildings’ experiences many landlords have begun using software that connects tenants with the buildings that they work in.
This category of technology has been dubbed Tenant Experience Software, or “TeX.” These platforms usually take the form of a user-facing application that allows occupants to communicate with building management, utilize a building’s amenities and connect with the surrounding neighborhood.
In order to understand how exactly it is changing real estate we asked our research team to investigate what tenant experience software is, who are the companies creating and using it, and how exactly it is affecting asset performance.
Going in, our hypothesis was that these types of technologies will make spaces more profitable by providing a better tenant experience, streamlining a building’s operations, creating additional streams of revenue and producing entirely new data sets for landlords to understand their tenants. But we needed to find evidence that these benefits actually translate into a demonstrable advantage that can be leveraged into higher lease rates, greater tenant satisfaction and retention, and lower vacancy rates. We tried to take an objective approach to how this technology is impacting the commercial office asset class and ascertain what the future might hold as this technology becomes more prevalent.
Through our research, we amassed a wealth of data on the companies creating workplace experience software as well as how the technology was being used within the world of real estate. We examined how digital tenant engagement can limit the costs of building operations and collected anecdotal evidence of the positive impacts on a building’s performance. But our most fascinating conclusion revolves around the ways in which these platforms are actually changing the way spaces are managed. We uncovered a dichotomy between an “old data” approach to buildings and a more modern, agile “new data” approach. In our opinion, understanding these modalities of ownership represents a broader shift in the role of buildings in our lives and an opportunity for property owners in the United States and abroad.