The Edge - Volume One

How are current trends impacting clients and influencing their business decisions?

Health and wellness is a huge trend in the world and we’re seeing this through the way people are consuming healthier food, becoming more aware of having a fit lifestyle and generally caring more about their overall wellbeing. In real estate, this translates to topics such as wellness certification, amenities and even work-life balance. Health has a big impact on the amenities in a building – from yoga to sit-stand desks to clean air, and it also impacts work-life balance and how employees feel at the end of each day. I don’t see this trend going away anytime soon, but rather becoming increasingly important. Another important trend impacting clients in the occupier world is data and building security. Since we often sit on client sites, we’ve invested a lot of time refining our technology suite to ensure it complements our clients’ data security protocols. Everything, from the simplest email to the sensors we put in buildings, needs to be enhance efficiency and security. (Refer to the article “Privacy, please” on page 44 for more information). Smart building technology and how it’s improving the overall employee experience is another timely trend impacting clients. Smart buildings reduce mundane tasks, make communication seamless and create an office environment that is happier and more productive. Going beyond controlling HVAC and lighting, smart buildings can mean personalization and mobility – with offerings, such as location sensors, to improve occupant satisfaction and productivity. STEVE

The underlying objectives of the investor client are somewhat similar to occupiers – ultimately, they both need to be focused on how to best position and operate real estate and successfully execute transactions. Therefore, the trends discussed by Steve are absolutely top of mind as they evaluate capital allocation. However, the angle from which they look at the challenges is inevitably somewhat different. While occupiers look at real estate to align with their strategy and operational needs, investors, depending on their scale and mandate, have a broad national or global canvas. They have a significant amount of capital to allocate and need to evaluate the changing landscape to develop their investment strategy. Sovereign funds, pension funds, life insurance companies and high-net worth individuals have different approaches and objectives when investing in real estate. Some of the challenges include the allocation of capital, repositioning assets for value creation, value or wealth preservation and diversification. Investors are seeking access to market intelligence, deal flow, strong execution and ultimately, great returns. The landscape is further complicated by a time when the lines between traditional real estate companies and new entrants from the technology and services sectors are blurred. More than ever, the ability to embrace an interdisciplinary approach to real estate investment strategies and to deliver innovative solutions that satisfy the ever-evolving needs of occupiers is critical. CARLO

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THE EDGE

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