What’s the Point?
The same decades-old drivers of commercial real estate asset value are finally shifting. Financial fundamentals and day-to-day management practices are converging around the human experience, and investors and owners must find innovative ways to blend space with service. Putting people first brings social benefits, environmental sustainability and a healthy bottom line.
Managing experiences, not just properties and facilities
The four primary functions of most commercial real estate (CRE) organizations — investment management, asset management, property management and facility management (the four “Ms” of management) — have for decades provided those organizations with a predictable playbook for achieving financial performance.
But the experience of people rarely factored into the bigger picture of asset value.
Now, with a palpable shift in the expectations of corporate occupiers and their employees, it’s time to put humans at the center of it all. Real estate can – and should – create value beyond the economics of rent.
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“Every space needs to enhance people’s lives, foster creativity and wellbeing,” said Ronen Journo, Hines senior vice president, Management Services, Europe. “Buildings are physical assets – and cost/location/investment all key considerations – but delivering for people is the driving force behind working and living in the future.”