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Commercial Real Estate is Ripe for Disruption

- The Internet has made basic data a commodity

- Tenants can find vacant space and view lease rates themselves

- The Increased data has been welcome however, it supports a cost-driven mentality

- This approach is intellectually outdated


Many Insights into how space and people interact coming from a variety of disciplines:

• Architecture

• Look, feel, layout & design lend impressions to a companies culture

• Urban Planning

• Walkability, amenities, breakout opportunities, green space

• Industrial Organization

• What departments sit together, how do we create natural run-ins?

• Human Capital Management

• How can we connect employees naturally, how do we optimize our employees?


A New Generation in the Workforce:

• Have worked in group settings their whole life

• Do not assume they will be driving cars or even working in an office

• Make far less distinction between physical and virtual space

• The line between their working world and personal world has blended

“Work Life Balance” is about creating joy, meaning & wellness within the working and personal world vs. the ability to turn one on or off"

Innovative Companies Challenging Traditional Assumptions:

• Not merely minimizing space costs given certain constraints

• Instead, accounting for very real improvements in performance gained from understanding how their physical space affects their business

• Productivity gains from comfortable and efficient layouts

• Innovation / new ideas generated from increasing “chance encounters”

• Attracting and retaining superior talent

• Minimizing non-productive time (commutes, comparative distraction i.e. the desire to be elsewhere)


Leasing Rates, a Factor, but not THE factor:

• Saving 10% on leasing rates is nice…

• But at what cost?

• Lack of performance

• Lack of motivation

• Weakened retention – rehiring – retraining

• Pricier recruiting – higher salaries, comp packages, etc.


This is not meant to imply the best space is the most expensive. Cost is a concern, but should be treated as an input into a space’s ROI, rather than a primary criterion.

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