Flex is well known to be one of the fastest growing sectors in real estate. It has revolutionised the office industry, but it can also offer valuable lessons for industrial & logistics landlords looking to stay competitive. By leveraging technology in similar ways to flex operators, industrial landlords can transform their properties into more attractive, efficient, and profitable assets.
Below I will explore three key ways the leading multi-let industrial landlords are learning from flex:
Providing Better Occupier Services
Industrial landlords can climb the value chain and attract higher-paying tenants by adopting technology-driven services similar to those offered by flexible workspace operators.
· Streamlined Operations: By adopting automated systems for building access, security, and maintenance requests, landlords can provide a more seamless experience for tenants. This level of automation and integration commonly found in flex and coworking spaces, can justify higher rents and attract quality driven tenants.
· Data-Driven Insights: Using smart systems around the building will provide landlords with data which helps them better understand their tenant needs. This information can be used to tailor services, optimise space utilisation, and make informed decisions about property improvements.
Increasing Revenue Streams
Technology-enabled services can help landlords boost their profitability and upsell services. With a better understanding of what tenants want landlords can ensure that they are focusing on the right services to upsell.
· Connectivity as a Service: Having fast and reliable connectivity increases a property’s appeal whilst also creating new revenue streams. Investing in robust physical networking infrastructure allows landlords to offer high-speed internet and advanced connectivity services as value-added services.
· Flexible Space Management: One of the most obvious USPs of flexible spaces is their versatility, creating adaptable environments that meet a range of memberrequirements. For industrial landlords the needs of their tenants may not be as fast to change, but having flexible layouts and scalable options can both improve uptake and also allow more dynamic pricing. By fitting out a space with technology that allows for easy space reconfiguration and short-term leasing, landlords can maximise occupancy and revenue.
Differentiation in the Market
· Smart Building Credentials: Not only can implementing smart technology help landlords understand their tenants more, but it can help their buildings gain accreditations which are useful for marketing to new customers. Landlords who invest in smart building features can position their assets as future-proof and technologically advanced.
· Connectivity as a Competitive Edge: Offering high-speed reliable internet and 5G capabilities can be a significant draw for tenants, especially in the growing e-commerce sector. This enhanced connectivity not only supports the growing technological needs of industrial operations, but also enables tenants to implement cutting-edge solutions such as real-time inventory management. Providing superior connectivity infrastructure thus allows landlords to command premium rents.
The strategies listed above are all things we have seen flex operators implement successfully in order to attract and retain a diverse customer base. The key is to view technology not just as an operational tool, but as a means to enhance tenant experiences, increase revenue and create a unique market proposition.Industrial landlords who embrace these lessons from the flex sector will be well-positioned to thrive, offering innovative solutions for their customers, rather than acting as simple ‘rent collectors’.
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