#CRE is no longer in the property business
The perfect storm for Space-as-a-Service growth
Chief Marketing & Development Officer Andrea Pirrotti and Director of Real Estate, Emily Larson, from US-based Space-as-a-Service brand, Office Evolution, joins Bold Founder, Caleb Parker, to share why they believe commercial real estate is no longer in the property business.
In this episode you'll gain insights into how Office Evolution is growing their brand across U.S. suburban markets through franchise and asset owner partnerships.
Landlords are no longer asking IF they need Space-as-a-Service in their portfolios, and are now asking HOW to deploy it. Emily shares her advice for landlords who want to get it right.
Andrea says CRE is now in the people business, and as an industry we need to move our mindsets from B2B to H2H (human to human).
If you have any questions or feedback on this episode, email firstname.lastname@example.org
History repeats itself
- 4 groups are impacted during turbulent times: enterprise companies, their employees, small businesses, and asset owners
- Facilities cost is the second largest fixed cost on balance sheets for most companies, behind payroll
- During turbulent times enterprise companies tend to cut labour, and end up with space they’re not using
- The C-suite sees space as a wasted cost
- Many people who are laid off start new businesses and need access to office space
- Historically flex offices thrive in turbulent times
- "We’re witnessing the perfect storm for Space-as-a-Service growth"
- The Space-as-a-Service footprint as a ratio to conventional office space is set to double in size over the next 3-4 years
- The customer pie chart for Space-as-a-Service will see an increase in enterprise customers over the next few years as lease events occur
- Brokers who do not include Space-as-a-Service into portfolio planning strategies for their enterprise customers are missing their fiduciary responsibility
- Space-as-a-Service enables portfolio owners to better monetise and enhance their assets
- Creates a customer feeder for the building
- Amenitises the building
- Landlords are no longer asking if we need Space-as-a-Service, and are now asking how do we deploy it
- Commercial real estate needs to move from B2B to H2H (human to human)
- CRE is now in the people business, not the property business
- Office Evolution is growing their brand across suburban markets through franchise and asset owner partnerships
- Their suburban locations are seeing a return to occupancy and pre-covid lead volume faster than other operators with CBD locations
Advice to LLs
- Not all Space-as-a-Service operators are created equal
- Choose an brand that fits your building
- Choose an operator that fits your culture
- Play to your strengths and outsource the rest
Got Milk campaign:
About Emily Larson
Emily has been part of the Office Evolution team for nearly 12 years, and helped launch franchising for the brand back in 2012. She’s had a hand in the real estate and design of every single one of their 72 locations, company-operated and franchise alike, and she built out the Real Estate and Construction Department and foundational processes to support the franchise growth.
About Andrea Pirrotti
Andrea started her career in the music industry, then found herself at a little known company called Regus where she was the global head of marketing and member of the leadership team that grew the company from $200 million to a billion dollars in Revenue. She’s run sales, marketing and provided advisory services for over 900 coworking locations across 65 countries. She says she “likes to grow things, which is presumably why she joined the Office Evolution team. Speaking of growing things, she’s given birth to two children in one year (who are not twins - how is that even possible!?). Almost as impressive, 4 of the companies that she provided advisory services to have had successful exits.