Providing office space that meets occupier demand

Perhaps now more than ever, there is the biggest divide between what occupiers want from their office space and what landlords currently provide.

A recent IDC InfoBrief sponsored by essensys (Enabling a Seamless Digital Experience Across an Office Building Portfolio, Doc. #AP, 241427IB, April 2023) surveyed 360 people across six markets in the Asia Pacific region. The aim was to capture occupier’s and landlord’s expectations, challenges and plans for the future of the office.

In this blog, we discuss the changes in occupier expectation and highlight how landlords need to revise their IT strategies if they want their business to succeed.

A shift in expectation

The modern occupier has new expectations of what they want from their office space. Survey respondents ranked high-speed and secure connectivity as the top expected feature within the building they work in.

Yet, only 1 in 4 (26%) occupiers are currently satisfied with their existing vendors who provide their network services. It is evident that landlord’s current offerings are not hitting the mark but are miles off.

However, landlords are beginning to recognise that flexible work models have shifted the expectation of occupiers and understand that they need to make changes to their business strategy.

Landlord survey respondents ranked developing flex strategies for the portfolio as the top priority for their assets (24%). This was followed by an equal emphasis on enhancing occupier experience (20%).

Now, with an increased focus on delivering a more flexible strategy, landlords are turning to technology to digitally enable their assets to provide a seamless digital experience to their occupiers. But are landlords implementing technology into their strategies fast enough?

Occupiers demand more…

The technologies that occupiers expect does not match what is currently offered by landlords.

When comparing the technologies expected by occupiers vs what is currently offered by landlords there are some strong differences:

• High-speed and secure public connectivity across a portfolio of buildings. This is expected by 64% occupiers but only 43% of landlords have met these demands.
• Strong network and data security. This is expected by 58% occupiers but only 23% of landlords have met these demands.

….And are willing to pay for it

The demands and expectations of occupiers are not on unrealistic terms though. Occupiers understand that to provide the office space they want for their employees and to adhere to compliance requirements there is a cost.

The responses show that 100% of occupiers surveyed are willing to increase their IT budget for new solutions that ensure a seamless digital experience at their workplaces. When broken down, 96% of surveyed occupiers are willing to increase their IT budget by more than 5%. And more than half (53%) are willing to pay between 10% to 25%.

Occupier’s expectations and willingness to pay for it presents an opportunity for landlords. Improving the IT services to provide seamless digital experiences in their building portfolio does not only ensure that occupiers are satisfied but can also bring additional revenue beside rental revenue.

Find out more about how the essensys Platform uses intelligent automation to remove the complexity of network, space and occupier management enabling landlord’s to provide exceptional customer experiences across their buildings and spaces.