Technology is the key driver of tenant experience - by Jeremy Bernard

When the office industry started to think about the occupier experience, it focused on occupied spaces. The layout became incredibly important, as did amenities. Investment was poured into ensuring that buildings had the best dining facilities, gyms, yoga, meditation studios, and ambient sound or living walls. While I’m not suggesting that having a great physical experience (both aesthetically and to aid productivity and collaboration) isn’t necessary, we’re now learning that the occupier experience must go much deeper.

At essensys, we recently conducted research, which showed that only one in five office workers indicated that amenities bring them back to the office: this pales in comparison to the pull of technology and flexibility. While amenities have a part to play when vast numbers of the workforce (86%) are frustrated with their current office experiences and vacancy rates are struggling, more notice should be paid to what occupiers want—great office experiences.

This doesn’t refer to surface-level experiences or physical experiences. They are after seamless engagement with their physical space, removed from frustrations. Technology is the key to delivering that, and occupiers know it – so much that workers are envious of the technologies available in other buildings.

The takeaway is clear, technology is the key driver of tenant experience. We see all too regularly the industry turning towards amenity-rich buildings as the solution to address vacancy issues.  According to Cushman & Wakefield’s Q3 2022 U.S. Office Marketbeat report, there was negative 18.5 MSF of net absorption across the U.S., the ninth negative quarter out of the past 10, dating back to Q2 2020. However, this approach must change as landlords combat a recession, navigate changing working habits post-pandemic, and deal with more demanding and vocal occupiers. The industry has been operating under a somewhat false assumption that physical amenities alone will move the dial. However, technology undoubtedly contributes the most to the in-building experience.

Technology applied correctly, not tech for tech’s sake, should be invisible to the occupier. Connecting the physical to the digital should enhance the spaces they interact with. This supports the delivery of amenity space, can bring older buildings back to life, and remove everyday pain points such as seamless roaming, access to areas or services, or consistent and reliable Wi-Fi. These are things that we know occupiers are demanding to enhance their workplace experience.

As we see a flight to quality, why has more not been done to satisfy occupiers who clearly demand digitally enabled spaces that underpin flexible and agile work environments? Why, as an industry, does there seem to be less hesitance in investing billions of dollars into re-outfitting buildings with plush new interiors when the playing field can be leveled by utilizing in-building technology at a fraction of the cost?

To curate a meaningful occupier experience and to entice people back to the office, all elements, such as security, amenities, and sustainability, should be addressed. They all undeniably impact the future of the office and how people work. However, it is the technology that underpins enabling the delivery of all these elements.

I firmly believe that overlooking investment into technology in favor of expensive physical amenities will be detrimental not only to the long-term future of the office but also to the short-term ability of commercial real estate to remain competitive.

Jeremy Bernard is the North America CEO of essensys, Manhattan, N.Y.