More Than a Feeling: The business value of a desirable workplace
Feb 10, 2025
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Jamie Hodari, CEO of CBRE's Building Operations & Experience and Industrious, discusses the transformative power of workplace experience. He highlights how enhancing space can deepen tenant attraction and boost employee satisfaction. Hodari emphasizes the importance of AI in interpreting data for better operations and the shift towards vibrant urban environments that support hybrid work. He notes the evolving finance industry’s need to adapt to operational real estate, urging a focus on quality spaces that enrich people’s lives.
Workplace experience is now a primary focus, transforming commercial real estate into operational platforms that prioritize user satisfaction and quality of life.
The integration of AI and data analytics is essential for optimizing building operations, driving efficiency, and adapting to modern hybrid work environments.
Deep dives
The Evolution of Real Estate Strategy
Experience has become a crucial factor in executing effective real estate strategies, especially in the context of commercial real estate. The focus is shifting towards enhancing the quality of life for users of real estate, transforming how spaces are managed and marketed. Companies like CBRE are recognizing the importance of operational excellence in delivering desirable experiences that align with the expectations of modern occupants. This strategic emphasis is expected to shape future decisions about real estate and property management.
The Role of Operational Excellence
Operational excellence is increasingly recognized as vital across all types of real estate, including data centers and office buildings. The smooth running of facilities is crucial to ensuring that they meet users’ needs and deliver optimal outcomes. Companies are reorganizing their operations to combine different management aspects to streamline processes and improve efficiency. Understanding that every building is now part of a larger operational framework allows organizations to cater to varying user experiences effectively.
Reimagining Workplace Experiences
The workplace has evolved beyond traditional productivity measures to encompass experiences that enhance life quality for employees. This includes creating environments that foster collaboration, creativity, and social interactions while also ensuring safety and efficiency. Success metrics are shifting to include not just occupancy rates but also employee satisfaction and the enriching aspects of the workplace experience. The focus is on developing spaces where people want to come and engage, rather than merely providing a physical location for work.
The Future of Commercial Real Estate
The future of commercial real estate is predicted to be driven by innovations in technology and an emphasis on integrating operational and experiential elements. Companies will increasingly view real estate not merely as static assets but as operational entities that require dynamic management. This shift will likely result in greater reliance on technology to improve operational efficiencies and enhance user experiences in various environments. As the competition grows, real estate firms need to prioritize the quality of their offerings and adapt to changing demands to remain relevant.
Jamie Hodari, CBRE's CEO of Building Operations & Experience, spotlights where he sees the biggest opportunity across commercial real estate: workplace experience. He discusses how a company’s space can attract tenants and enhance the employee experience, enriching people’s lives and increasing business effectiveness.
Share these insights from this week’s episode:
Everything is operational real estate: Real estate companies are evolving from asset focused businesses to operating platforms, requiring high-quality management relentlessly focused on workplace experience.
AI and data utilization are no longer nice-to-haves: Using AI to manage and interpret data is crucial for optimizing building operations.
Markets are adapting to accommodate hybrid work models with flexible office usage: Urban markets especially put significant emphasis on making downtown areas vibrant.
Finance institutions are catching up: The finance industry must recognize and adapt to the operational nature of modern real estate.
Flight-to-quality is expanding: The focus for landlords and occupiers will increasingly be on creating spaces that people find enriching and valuable, not just functional.
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