Are You Responsible for Future-Proofing Your Property?
I am not going to sound repetitive but I must reiterate that many building owners are still unsure about flexible workspace options.
You can live without it, don’t get me wrong. It’s possible to survive as a low-B or C building, a commodity. However, it doesn’t necessarily mean that you will go bankrupt.
It’s possible to still find tenants and make a living. If that is your business philosophy, you should stop reading.
If that is not your goal, someone will ask you one simple question.
Who is actually creating the strategy that drives these decisions? Are you really trying to plan for the future of your building(s), or just hoping that the old ways won’t fail?
I’m sorry, but you don’t have anyone to manage your building’s future strategy.
The long-term success of your building depends on what you do now
You can still survive, as I have said, even if you don’t adopt flexible workspace in your building. But at what cost?
Many tenants won’t continue to receive the same rates and quality tenants as you used to. It’s not easy to get your building(s), back.
A lot of building owners use a strategy similar to this one, I’ve noticed.
I can have 10 tenants in a B-building and they are all renewing within the next three years. I’m secure and don’t need to do anything.”
Yes, it’s one strategy. It’s not a long-sighted strategy.
The next question is:
Do I use this moment of no urgency to think about the future after these three years? Or should I just let my head rest ?”
I believe smart building owners will start to think about it now, so that they don’t end up in a difficult spot in 36-months.
Who is making your strategic decisions?
Every building is unique. It is right that not all buildings should be following the exact same playbook.
The universal questions that you should be asking are:
- Are you able to see the entire portfolio and plan for how you will handle the return to work?
- Which star is your north star?
- Who is driving real estate strategy in your company’s companies? Are you able to manage this?
- Who is at the table to make these long-term decisions and discussions?
- Where can you find news, insight, and influence that will help you make better decisions?
- Do we need to plan for the return of work or just wait and see?
Many building owners employ people to oversee their strategy. Many of these people have blinders on. The problem is that those who most need this strategy are the most likely to neglect it.
Many forward-thinking, sophisticated companies own buildings, particularly at the institutional level. They’re already ten steps ahead.
What about the rest?
How to start Future-Proofing Your Buildings Now
I asked you earlier to consider how you are getting the information you need to guide your future strategy decisions.
- Does it belong to an internal team?
- Do you need a broker to help you?
- Do you read whitepapers and periodicals?
- Are you interested in attending events or getting information?
Are you just speculating or are you really just making assumptions?
If you are just speculating, you will be blind. Speculation is not strategy.
It is amazing to me how many buildings are still locked into 10-year contracts.
Some buildings aren’t going to need a strategy for their future. They share a niche with everyone in their building so flexibility is not required.
Some have even managed to get ahead of the curve and are now planning how to return to work.
However, I think that if you subtract 10% from each bell curve end, you still have 80% buildings that aren’t flexible but will be much more successful with it than they would be without it.
Get in touch with us today to learn more about our managed model. I would be delighted to explain the many benefits this model can bring you.
This post was written by Tara Kintz. Tara is a director at Signature Workspace which is a workspace in Tampa. Signature Workspace, owned and operated by Cantor Fund Management, offers services and amenities such as private offices, flex space, co-working space, virtual offices, meeting/conference rooms, and more.