Introduction:

Welcome to 2025—the year of data-driven commercial real estate! As we celebrate REKalibrate's first anniversary, we're reflecting on a year of helping clients unlock the power of their first-party data to truly understand customer needs. We've learned a lot, and we've heard even more questions. That's why we're excited to introduce REKalibrate's Bi-Weekly Whiteboard—a series where we'll share key data insights and actionable strategies to help you navigate the ever-evolving CRE landscape.

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The Shifting Sands of Commercial Real Estate

The commercial office market has been in constant flux since 2020, and the pace of change shows no signs of slowing down. Let's take a closer look at the forces shaping the market:

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• Demand-Side Dynamics: As 2024 came to a close, 81% of the US workforce remained hybrid or fully remote, with only 19% fully on-site. This decade-long trend toward increased remote work has fundamentally reshaped how occupiers view and utilize office space. Most are no longer tied to traditional 9-to-5 schedules and are seeking flexible, experience-driven workspaces.
  
• Supply-Side Realities: 2024 highlighted downward pressure on capital availability in addition to the "flight to quality" phenomenon. A striking example of this trend is that just 2% of top-tier assets captured a remarkable 84% rent premium. This dynamic underscores the importance of understanding what occupiers truly value in their workspace in order to uplift and position assets accordingly.
  
  

2025 and Beyond: The Critical Questions

These market dynamics raise several crucial questions for CRE owners and operators:

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• Where will demand go next? How can you anticipate the evolving needs of occupiers and position your assets to capture future demand?
• What strategies can be deployed to attract and retain occupiers? In a competitive market, what steps can you take to differentiate your offerings and provide exceptional value?
• How can you reconcile the tension between capital constraints and the need to invest in property upgrades and customer-centric solutions?

In our upcoming Whiteboard sessions, we'll delve into these questions and explore practical solutions for navigating the challenges and opportunities of the current CRE market. We'll also share insights on integrating customer-centric principles into your CRE strategy.

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REKommendations: Analytics Over Anecdotes

In this era of transformation, our core advice for 2025 is simple: reject anecdotes. While third-party statistics can be valuable, the real goldmine lies within your own first-party data. You're likely sitting on a wealth of information about how your occupiers are using your space, what they value, and what their pain points are. Unlocking this "dark data" is the key to making informed decisions and gaining a competitive edge.

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