VTS Accelerate 2023: Our Takeaways
In the midst of an ever-changing economic landscape, the commercial real estate industry has witnessed significant shifts and transformations in recent years.
Our flagship conference, VTS Accelerate, is designed to bring together industry leaders and experts to discuss the dynamic landscape of the CRE industry. At this year’s event, several key themes emerged.
For those who weren’t able to make it out in person, our team of experts put together our top takeaways from the event. Let’s walk through the insights and ideas that continue to propel our industry forward.
Tenant experience is evolving
The continual shift towards remote work and the rise of the sharing economy have prompted CRE professionals to rethink the way we define the “workplace.” In tandem, this has forced leaders in CRE to rethink tenant experience.
For Kent Tarrach, U.S. Commercial Office Sector Head of PGIM Real Estate, “It’s the idea of developing a deeper connection with the tenancy and the occupiers in our spaces.”
“It’s about really trying to understand what motivates them to come to the office and what increases their desire to be there and be more productive,” he said.
So how can we best serve tenants in this new way of working? Ultimately, customer experience is the foundation.
“If we can become an expert in delivering what people want in order to come in, we’re going to be in good shape,” said Jamie Hodari, CEO and Co-Founder of Industrious. “They’re expecting their building to be their partner in the day-to-day delivery of a great workplace experience.” This means offering a diversity of space types (spaces for collaboration, focus, privacy, and socialization) and creating an ecosystem that serves the way they work, even as it fluctuates.
Owners and property managers need to go beyond traditional service offerings and create memorable experiences that cater to the evolving needs and expectations of tenants. The integration of technology, such as smart building features, personalized amenities, and community-building initiatives is another key driver in enhancing tenant satisfaction and creating a new, modern blueprint for the workplace.
Leaders are critically evaluating proptech
Proptech, the integration of partner technology into real estate operations, is undoubtedly a game-changer for the industry.
As Emma Buckland, Global President, Property Management of CBRE put it, “Technology in itself is a strategy.” For her, it’s about using technology to amplify building activity and the asset itself. “We want to be able to provide a fully stacked tenant experience product with the ability to book flex space, facilitate seamless access control, and also provide food and beverage.”
Consolidation is another emerging priority. “People are predicting that we’ll see a lot of consolidation in proptech and throughout the tech ecosystem,” said Barry Sternlicht, Chairman and CEO of Starwood Capital Group, during his keynote.
Discussions at the event largely revolved around the use of data and analytics to optimize property management, streamline leasing processes, and improve operational efficiency. Increasingly, proptech solutions are enablers for creating smarter, more sustainable buildings and fostering better tenant experiences.
We unveiled VTS Activate
“With every crisis comes opportunity,” Nick Romito, our CEO, said during his keynote. This sentiment informs our mission at VTS and is reinforced by our latest product launch.
With work happening everywhere, the workplace is more disconnected than ever. Understanding what tenants want from work is a critical piece of the puzzle, yet owners and operators lack the critical tenant insights they need.
These are key problems owners face today. And here at VTS, it’s our job to be obsessed with these problems in order to create the right solution. And that’s exactly what we did.
VTS Activate — our new tenant experience solution built for the expanded workplace — is the platform you need to create winning opportunities as you navigate the future of real estate.
Of course, Accelerate was the perfect time to debut VTS Activate. If you missed the announcement in-person, learn more about it here.
ESG is increasingly important
Environmental, social, and governance (ESG) considerations made a notable appearance at VTS Accelerate and for good reason.
“E and S and G are all very different things but got grouped together in what I call the ‘bucket of goodness,’” said Bob Sulentic, President & Chief Executive Officer of CBRE Group.
“The CRE industry broadly creates about 40% of carbon emissions in the advanced world — that’s a big deal, a big burden, and a big obligation. Almost everyone now agrees that the environment has become a problem that we need to do something about,” he said. “Our industry has a responsibility to do something about it and I think it’s a big opportunity for us, which is an exciting thing.”
Sulentic believes that while the specifics of sustainability regulation may ebb and flow, in the long-term, the industry will move towards doing the right thing: becoming more carbon neutral.
As attested by the conversations at the conference, the growing awareness of climate change and sustainability has pushed the CRE industry to adopt more environmentally conscious practices. Additionally, fostering inclusive and diverse communities within commercial properties is an emphasis when it comes to the social aspect of ESG initiatives.
CRE leaders are embracing data for decision-making
“It’s all about the data,” said Emma Buckland, Global President, Property Management, of CBRE.
“We want to collect data around work order requests, physical occupancy, amenity usage, tenant experience, satisfaction, and sentiment in order to deliver a branded standard so that every building operates in a similar fashion,” she continued.
Leveraging data allows owners to better understand what is happening in their buildings, cross-compare with leasing economics, and ultimately deliver a better experience for tenants.
“We want to create curated experiences,” Buckland said. “I think the pressure is going to be on property teams to deliver those highly relevant experiences to make sure we can get people back in. Obviously, technology is the backbone of all of that.”
Sulentic put it bluntly: “Looking at our industry in terms of the information we have now — driven by technology and accumulated data — we get something like VTS where we’re using data to predict what might happen in buildings.”
This data is powerful. “It’s about providing the people we work with comparative data on how their buildings and their portfolios are operating from a cost perspective, relative to others. This information can be used to support our brokers and our building managers from both a transactional and financial performance perspective,” Sulentic said.
Harnessing data allows owners to make more informed decisions in order to provide these high-quality experiences. By leveraging analytics, you can gain deeper insights into market trends, tenant preferences, and operational efficiency. Data-driven decision-making allows you to optimize portfolio performance, identify building investment opportunities, and tailor tenant experiences.
The future of real estate
Influenced by these key themes, the future of real estate takes shape. While change is a constant, we can better understand the evolution of this industry’s landscape with these notable insights.
VTS Accelerate was a game-changer. The event provided a platform for industry leaders and experts to explore the key themes shaping the future of the industry and facilitate the conversations that matter most today.
