In a single generation, we’ve moved away from ownership. We’re now in an on-demand, gig economy where owning things is becoming increasingly expensive and even quaint. This subscription economy continues into every walk of life – music, cars, movies, jobs, and homes, and this is where ‘experience’ becomes even more premium as a critical differentiator.
A new generation of commercial real estate companies have spotted new economic opportunities and now provide services such as co-working spaces, cohousing with hotel-like amenities, on-demand storage, and pop-up space for retailers as a monthly subscription. As a result, some real-estate companies do not see the need to adhere to traditional staples such as the triple-net lease, in which a lessee covers all costs, including real estate taxes, building insurance, and maintenance.
In this new model, building occupants become subscribers instead of tenants; managers become curators, and commercial real estate companies create value by continually providing unique experiences and rapidly anticipating clients’ changing tastes and needs.
As services become more critical to real estate, digital technology, creativity, and experience planning will become an essential part of commercial real estate teams.