Introduction:

In our recent Whiteboard session, we explored the shifting dynamics of the CRE office market, from the rise of hybrid work to the "flight to quality" trend. We asked: Where will demand go next? And what strategies can owners and operators deploy to capture that demand? While none of us have a crystal ball, we all have data. And that data can be the foundation for a customer-centric approach.

‍

Defining Customer-Centricity: More Than Just a Buzzword

"Customer-centricity" is quickly becoming the new buzzword in our industry. But what does it actually mean? If it's going to be more than just lip service, it requires a fundamental shift in mindset - a move away from thinking of the companies that lease space as "tenants" and embracing them as valued customers. Just like the evolution we've witnessed in retail, the office owners and operators that prioritize the customer experience will be the ones that thrive.

Customer-centricity in CRE means deeply understanding the needs, preferences, and pain points of occupiers. It's about going beyond simply providing a box and creating an experience that enhances their productivity, fosters collaboration, and supports their business goals. It's about building relationships, anticipating needs, and exceeding expectations.

‍

Why Customer-Centricity?

In today's competitive market, occupiers have choices. They're looking for true partners who understand their unique requirements and are willing to collaborate with them to create optimal work experiences and transactions. Adopting a customer-centric approach can unlock:

• Increased Customer Retention: Existing satisfied customers can be 10x more likely to transact than new prospects, and retention can save up to 7x the capital required to acquire a new customer. The concept of Customer Lifetime Value (CLV) hasn't been widely adopted in the CRE industry - but it should be.
• Enhanced Asset Value: Customer-centric buildings attract and retain high-quality occupiers, increasing cash flow durability and asset value.
• Gained Competitive Edge: In a crowded market, a reputation for exceptional customer service can be a powerful differentiator.

‍

Introducing Our 4-Step Roadmap to Success

Becoming truly customer-centric is a journey, not a destination. It requires a structured approach and a commitment to continuous improvement. We've developed a 4-step process to guide this journey:

‍

1. Data Mastery
2. Getting to Know Your Customers
3. Turning Insights into Action
4. Driving Business Outcomes

We'll dive deep into each of these steps in future Whiteboard sessions, providing practical strategies and real-world examples to help you implement a customer-centric approach in your own organization.

‍

REKommendations... Peak Utilization > Average Utilization

We analyzed workspace utilization data across tens of millions of square feet, revealing a key insight: Peak Utilization is often a stronger indicator of future procurement needs than Average Utilization. Average Utilization may suggest further opportunities for optimization, but occupiers hesitate to downsize when they see peak demand surges—especially in an uncertain environment where flexibility is key. Peak Utilization, on the other hand, captures the highest intensity of space usage, which gives occupiers confidence in their sizing decisions (even if the Average Utilization suggests excess inefficiencies).

‍