Tom Wallace, CEO & Founder, Re-Leased
In this episode of the Market Lens Podcast, Tom Wallace, CEO of Re-Leased, and Andrew Knight, Global Data & Tech Lead at RICS, look at how some commercial landlords are adopting innovative approaches to ensure demand for spaceswhile others are being left behind. They also discuss the impact of shortening lease lengths in the UK office sector on valuations and how to approach adaptive reuse.
In this episode of the Market Lens Podcast, Tom Wallace, CEO of Re-Leased and Laurence Hart from Macquarie Business Bank shed light on the declining length of office leases in Australia, delving into the factors behind this trend and its impact on the market.
Commercial real estate is facing more change now than in the last century, and it needs to start fighting back.
2023 is already seeing a fundamental shift in the Commercial Real Estate industry as disruptions to the market such as working from home, evolving workforces and ESG regulations become more polished and more accepted by the mainstream. All headwinds are blowing favourably in the direction of PropTech, and it is now time for businesses to embrace this inevitable evolution.
In the last 12 to 24 months, there has been a significant labor shortage in commercial real estate, much like many other industries. Commercial leaders are finding it difficult to attract the talent they need while also ensuring they retain their best people. In light of this, the topic of people development has become a high priority for the industry.
Coworking is nothing new. In fact, the first ever coworking space was built way back in 2005 but it took a while before really gaining traction. Today, coworking has been deemed a priority for anyone who owns or manages an office building - and it’s making its way to the suburbs.
It may be an intimidating evolution to some, but PropTech is here to stay - so much so that Edward Wagoner, CIO for Digital at JLL states that “If you don’t take this seriously, in 5 years we won't take you seriously as you're not going to be around”. Adopting the right PropTech solutions can have incredible benefits for your business as the future becomes more digital for commercial real estate – yet many are put off by change.
The retail sector has been one of the hardest hit in CRE in recent years. First, there was the rise of eCommerce as customers flocked to online stores. Then, when a global pandemic forced shops to close their doors, many started to believe the days of physical retail may be numbered. But Rebeca Guzman Vidal never bought into that narrative. Rebeca is the Group Head of Retail Strategy at Chelsfield, a leading international real estate company focused on asset management, development and investment. She is also one of the retail sector’s leading voices and minds helping to shape the new era for the sector.
Commercial real estate investors, developers and owners are embracing the move towards more efficient and eco-friendly commercial buildings, helped along by growing government mandates globally. Countries like the United Kingdom have been setting the pace when it comes to ESG-focused initiatives and now other countries are starting to follow suit. So how are commercial real estate companies approaching these initiatives?
Since the pandemic, there has been a high demand for improving the quality of all indoor environments, including commercial properties. People are more conscious of the health risks that poor air quality imposes, which has forced commercial landlords to be more proactive in optimizing their buildings. If landlords want to charge premium leases, attract and retain tenants, they can’t sit back and ignore the new demands for the indoor environment.
Great branding isn’t the first thing that springs to mind when you think of commercial real estate. For decades, the extent of a ‘brand’ would be a company name (typically a last name or multiple last names) and a bit of colour. But building a memorable brand not only helps you stand out from the (slightly outdated) crowd, it also has a tangible impact on your business.
While co-working spaces have been in play for many years now, the pandemic has shifted the way that we engage with the workplace. The 'Space as a Service' model is quickly growing in popularity among tenants looking for flexibility. On top of this, expectations on landlords are higher than ever to create spaces that will attract people back to the office.
What happens to older commercial buildings that no longer serve the needs of their tenants? They sit vacant for a long time and become underperforming assets in an owner’s portfolio. But these buildings also present opportunities to create a space for today’s tenant and customer needs without starting from scratch.
The customer or tenant experience has been a major talking point across all sectors of commercial real estate recently. As tenants look to move away from 20-year leases to shorter agreements, the onus is on landlords and owners to deliver a service that will keep tenants in their buildings. It’s a trend that has already become popular in the office sector, but Industrials REIT is bringing that focus to the industrial space and finding great success.
Tom Wallace, Re-Leased 's CEO reflects on what the office of the future can learn from retail's past and finds flexibility, experience, and convenience at the forefront. This opinion piece originally appeared in Estates Gazette.
Re-Leased’s CEO Tom Wallace looks at how technology tools can empower landlords, asset managers and accountants to run real estate portfolios effectively.
To our Re-Leased Community, As COVID-19 continues to impact people and organisations globally, we want to update you on the steps that Re-Leased is taking to ensure business continuity for our clients around the world.