Commercial properties are struggling to attract and keep tenants, according to a new report, with 99% of building operators agreeing it’s harder to make money post-pandemic and one in five struggling to predict their revenue streams.
The research found that one of the key factors impacting this is a disconnect between tenant priorities and commercial space provisions. Just 16% of commercial building operators understand how their spaces are currently being used, according to the Adapt to Survive: the Flex Space Revolution report from workplace access, experience, and analytics platform, Accessia.
This lack of understanding is largely due to the changing needs and behaviour of SMEs and their employees as they continue to navigate turbulent economic conditions. 29% of asset managers say that organisations are finding it difficult to gauge when and how often their employees want to be in the office.
Many employers are also juggling office-based, hybrid, and remote working employees. With SMEs struggling to understand their workforce, it’s no surprise that commercial building operators are finding it difficult to adapt to their needs.
Yet, despite this knowledge gap, many commercial building operators and asset managers are planning drastic and expensive changes to their offerings. In fact, a third of building operators are considering transitioning to a flex model to increase commercialisation.
Whilst this can offer the key to addressing many of the challenges felt by commercial building operators today, it’s a costly exercise to get wrong. Indeed, 30% of commercial building operators are concerned about the high up-front costs of transitioning to a flex space model, whilst 28% worry about the ongoing costs.
Mark Loney, CEO of Accessia, said: “The way businesses operate has fundamentally shifted in the past four years, and commercial property owners must adapt to this to remain competitive.
“While many are considering transitioning to a flex space model as a solution, it’s crucial to understand that to do this successfully requires a focus on more than just physical space. To run a successful flex space, you must understand what mix of workspaces is needed to meet the evolving demands of tenants – from SMEs to large corporations – and consider the ongoing service that needs to be offered. By investing in data-driven insights and innovative solutions, commercial building operators and asset managers can create environments that attract and retain tenants, ensuring long-term profitability.”
Download: Adapt to Survive: the Flex Space Revolution.
