Have you been thinking about the ways in which real estate companies are adopting practices used by the traditional hospitality industry to disrupt conventional retail, office, and housing concepts?
Different real estate asset types are reinventing tenant and customer experience, drawing significantly from long held practices in the hospitality industry. Companies are increasingly employing physical elements (amenities, design, furnishings, etc), and service components (sales tactics, rent durations, revenue practices, etc) from the hospitality industry, responding to changing tenant and customer demands.
According to CBRE, companies, by 2030, will compete fiercely for world-class talent by creating amenity-laden workplaces that offer a bespoke, boutique experience. We all could say that hospitality is the emotional, human-to-human delivery of a service experience.
Part of delivering a hospitality-like experience, is anticipating customer needs and providing seamless, end-to-end solutions.
This attention to detail across design, programming, operations, and other dimensions can be understood as part of a broad shift in relationships within the real estate industry,. What’s happening really is that the customer is being redefined and the expectation of the customer is now what the building owner has to do.
The advent of flexible space – either for core operating or special-purpose event – has begun to put asset owners in the position of delivering an office experience as opposed to static, unactivated space. That has shifted complexity and uncertainty to them, which is where partnership with the right operator can add value.
Another major challenge facing the space is the tension between short-term and long-term investment horizons. The scale of large mixed-use projects often requires an extended timeline to realize gains.