Unlike other industries, commercial real estate has been much too slow to innovate – with a glaring absence of research and development for primary customers. Real Estate owners have been operated their assets very much the same for their tenants for well over the last 70 years - unheard of for other vertical industry sectors. 

 

Dramatic changes in labor dynamics -- along with the emergence of cloud-based infrastructure, increasingly facile connectivity and huge generational shift in employee workplace flexibility -- are catalysts that can and should immediately change commercial real estate . 

 

These factors have already ushered in a new “occupancy paradigm” where end-users and their employees can easily process work (and therefore operate their businesses) from places other than just the traditional office venue.Sophisticated end-user occupiers and institutional investors are strategizing and adapting accordingly. 

 

Increasingly, businesses question the viability of a single-solution model (“traditional, term lease office space”) and thus, we are witness to a long-term trend in workplace utilization practices -- at unprecedented levels. 

 

As these demand-side behaviors mature, real estate asset owners will scramble to fill space as they compete with much broader, non-traditional occupancy modalities -- such as working from home or subscription solutions such as offered by third party flex or Office-as-a-Service (OaaS) operators. 

 

In this “Office 3.0 TM ” environment, the entire commercial real estate eco-system (supply, demand and 3rd party intermediaries) is already affected and will only continue to change.

