Office Asset Optimisation

Cost, Talent and ESG are the three main drivers for real estate decision making. While acknowledging there will be nuances between occupiers, certain trends are becoming increasingly clear. There is a “flight to quality”, though this should not always be interpreted as a “flight to premium” and quality is often inextricably linked with a strong sustainability certification from a physical environment and wellbeing perspective. The needs of tenants are changing. Many tenants themselves are still trying to understand the quality and quantity of space that they need given the rise of flexible working strategies and the associated impacts not only on where employees work, but also how they work. UNDERSTANDING CHANGING TENANT REQUIREMENTS

Major blue-chip tenants are indeed seeking premium grade assets to occupy, but there are also a host of other tenants for whom premium grade rents are out of their price range. Rather tenants are seeking the best premises they can afford, even if this means taking slightly less space. The reason for this is cost and talent retention, which are driving forces in building selection. Accordingly, location is a primary consideration. From there tenants are becoming more discerning in assessing the building’s structure, its services, the surrounding setting and finally the curation of experience. With regard to these last two points, the potential to partner with neighbouring or like-minded landlords should be explored, especially across larger assets and precincts, to create destination zones. Asset owners are therefore advised to go beyond traditional office assessment metrics and objectively view their asset through the eyes of the tenant.

OFFICE ASSET OPTIMISATION FOR TOMORROW

CUSHMAN & WAKEFIELD

11

12