Change is inevitable, and as leaders in the commercial real estate industry, it’s crucial to adapt, innovate, and draw inspiration to face these challenges.
Tom Arnold, CEO of Gridium, recently joined Dr. Christopher Teng, a climate veteran who leads global facilities operations and sustainability for Juniper Networks, for a recent episode of CoreNet Global’s “What’s Next?” podcast series to discuss sustainability challenges and opportunities facing commercial real estate leaders today—and how everything from Taylor Swift to AI is inspiring a more innovative approach to the status quo.
Some of the challenges and industry trends Tom and Christopher discuss include:
1. Can office space be both flexible AND sustainable?
Remote work has become increasingly popular, challenging traditional notions of office space utilization. As leaders evaluate their work arrangements and reassess their space requirements, they are exploring options such as hybrid models.
As a result of this shift, real estate leaders are having to rethink their space allocation strategies, alternative sustainability measures, and possibly downsize or repurpose their office spaces.
Sustainability remains a critical focus. Empty offices still emit a significant amount of carbon, highlighting the importance of sustainability initiatives for reducing both expenses and environmental impact.
2. Rising pressure to progress sustainability and ESG
In addition to health and safety concerns, corporate real estate leaders are increasingly being asked to address ESG concerns and maximize sustainability in office spaces. Employees want to know if their workplace aligns with sustainable practices, including energy efficiency, waste reduction, and environmental stewardship.
From building design to ongoing operations and maintenance, corporate real estate leaders must integrate sustainability considerations into their processes. Providing clear information about the sustainability features of office spaces, such as green certifications, energy performance data, and sustainable amenities, helps organizations attract and retain talent while demonstrating their commitment to environmental sustainability.
3. Adapting to customer preferences
With hybrid work becoming more prevalent and health considerations taking center stage, customers now prioritize flexibility, safety, and well-being when evaluating office spaces.
Customers now emphasize amenities that promote health and wellness, such as outdoor areas, fitness facilities, and access to natural light. Also, in response to market dynamics, the flight to quality is an increasing trend among players who need to invest in high-quality assets.
Corporate real estate leaders must be attuned to these evolving preferences and adapt their offerings accordingly to meet customers’ changing needs in the post-pandemic era.
4. Balancing innovative and proven methods
The pandemic has accelerated technology and innovation initiatives in corporate real estate management. Virtual tours, digital tools, and smart building technologies have become essential for managing real estate assets remotely, facilitating communication with stakeholders, and optimizing building operations.
However, while AI and technology offer opportunities for innovation, there is a caution against chasing the latest trends blindly. Instead, real estate leaders are encouraged to focus on tried-and-tested solutions that have been battle-tested on the market. New technology requires careful planning, buy-in from leadership, and thorough training for successful integration, although not all real estate leaders are ready.
So, what does this all have to do with Taylor Swift?
“If you are one of these teams that is reinventing themselves, and what space means to the organization, then you are Taylor Swift,” says Tom.
If anyone embodies resilience in the face of disruption, it’s Taylor Swift. Through personal challenges, public scrutiny, and legal battles, the pop star has demonstrated how to overcome obstacles and thrive in changing environments—all while maintaining her commitment to core values and authenticity.
Real estate leaders, facing a disrupted industry post-pandemic, can learn a lot from our queen of pop on how to pivot and find creative solutions to survive.
Tune into this lively discussion with Tom and Christopher, two building sustainability veterans, for valuable insights—inspired by the queen of pop herself—on everything from stakeholder engagement to risk management.
