Page 55 - RC21 EDGE Summer Issue

Deutsche Bank is speculating that it could move half of its NYC-based workforce to smaller hubs.These changes would then cascade to retail and restaurant vacancies, since a reduction in workers will also lead to less demand in restaurants and cafes, plus a decline in foot traffic.
At the same time, those offices that companies do retain may need to be upgraded. It’s fair to assume that office occupants will want more details on the maintenance history of HVAC systems, including when air filters were last changed. Indoor air quality (IAQ) sensors, which are easy to procure for a home, may become a core data source for tenants. Credit Suisse’s Equities Research
team estimates that the “IAQ pandemic-related upgrade” market for the US could be in excess of $35B, with an average spend of $72,000 per building. And, there likely will be changes to the physical office space. For one, a focus on in-person collaboration, instead of independent work, will require more audio/visual technology, in addition to solutions to help locate available space, specific colleagues, and deliver a more consistent in-office experience—even if it is your first time in a particular location. These discussions are happening at the highest levels of many organizations and McKinsey has been writing about some of these trends.
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So, what gives? Do landlords make accommodations to help their current tenants convert their space? Do some buildings invest in pre-emptive upgrades to lure new tenants? With less revenue but more expected capital investments, what is a commercial real estate firm to do? It’s possible that growth in as-a-service models will help to move traditionally capital-intensive expenses to become operating expenses. Additionally, cost savings via energy reduction, data-driven operational efficiencies or other means will become even more appealing. Pre-pandemic, there had been chatter about a move from PropTech 1.0 (cost savings) to 2.0 (revenue generation). But with this uncertainty, reducing costs is probably a safer move for many real estate assets. We do not think there is one answer to this point: different industries and different regions will have their own expectations about what can be done remotely versus in an office, and this will likely impact what tenants and occupants expect to find in the workplace.
Growth in Mobile Building Interfaces (MBIs)
Yes, there is a new acronym for our industry. We’ve seen a rise in tenant amenity apps, which started as ‘nice to have’ tools to provide a digital experience in a built space. Now we have some must-have use cases, some of which were discussed in our January 2021 newsletter. There continue to
The Best Smart Building Solution for Return To Work
• In-app desk and room reservations
• Integrated mapping and wayfinding
• Employee engagement tools
• Personalized notifications
• Corporate services and amenities
• All floors, buildings, and locations
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2021-05-11 10:53 AM 55