Current Brief

Space as a Service

Within this ever-changing Commercial Real Estate environment; we need to be thinking of space as a service.  The office is no longer just a workplace.  Space is rapidly becoming an on-demand experience. The barriers between the idea of Live/Work/Play are becoming blurred. 

According to a report by JLL, by 2020, 80% of the worlds adult population will own a smartphone.  By 2025, 50% of internet traffic will come from the Internet of Things and by 2030, 30% of corporate portfolios will comprise flexible office space.

The result of an exponential change in technology CRE professionals, building owners, and facility managers need to adopt new business models.  Just as software has become a service, space increasingly is becoming a service.

Instead of owning a CD (remember those) we stream our music.  Instead of buying a DVD we subscribe to Netflix.  Instead of owning a car we use Uber or Lyft. 

Even the workforce model is changing from a full-on traditional workforce model to a core workforce with a contingent workforce working in a home or flexible office arrangements.  The key to making that flow is ease, speed, and secure connectivity. 

From a real estate perspective, this means rent it when and as you need it. Along with space, this also means all the services required to get the job done. On-demand services; just what you need when you need it. 

To meet the future demand building owners need to be prepared to provide the infrastructure and services.  Just like they provide power, water, HVAC and janitorial services a robust and secure broadband connection will be a must to support:

Mobile services

Security

Connectivity

VoIP

Cloud

IoT

DAS

AI

This multi-faceted demand will not only come from tenants.  Smart Landlords will develop flex office models of their own.  Boston Properties and MRP to name just a few have already entered this market.

The need for secure networks for operating a facility is growing way beyond BMS to incorporate IoT, DAS, and AI.  To effectively manage a property it becomes apparent Landlords will need access to these highspeed secure services.  It should make sense building owners would run a robust network that prepares their portfolio not only for their operating needs but also for the changing market of space as a service.

Let RSC Project Management help manage your portfolio to future of CRE.

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