3 trend lines (Not headlines!) in the outsourced Real Estate sector

“follow the trend lines, not the headlines.” — Bill Clinton

I was recently reminded of this quote by Ryan Simonette, CEO of Convene. It really resonates with due to the current headlines around office leasing and coworking (or outsourced real estate, as I’ll refer to it from now on).

While the headlines are noisy, the trend lines tell a compelling story. From my perspective 3 major trends stand out;

1. Technology.

Technology has impacted every line of business. Whether that be infrastructure or software. Real estate and office leasing are no exception.

2. Flexibility.

As a result of leveraging new and innovative technologies, flexibility in lease terms is more important than ever before.

The pace of change in business is fast. All types of companies are looking to real estate providers to create flexibility and mitigate risk.

3. Experience.

Arguably the biggest trend, in my opinion, is that companies are constantly looking for ways to maximize convenience by outsourcing things like construction, design, furniture, IT and, more importantly, EXPERIENCE. Not all companies deliver space as an experience (SPaaS) to attract/retain the best. When done right it makes paying a premium for real estate an easy sell.

Key takeaway

Keeping these 3 trends in mind, as time goes on, there’s going to be MORE players in the outsourced real estate sector, not less.

I would love to hear your thoughts on these trends and the future of the outsourced real estate. Follow me on LinkedIn and follow #CBREForward