Why service will be the differentiator when offices are a commodity
Driving building valuations through service
Mark Tyson, Head of Service Delivery at Legal & General Investment Management (LGIM) sat down with Bold Founder, Caleb Parker, to share how space moving from product to service can create successful businesses, driving demand, premium rents and ultimately high building valuations.
About Mark Tyson
Mark is Head of Service Delivery at Legal & General Investment Management (LGIM). He is responsible for all Property & Facilities Management operations across over 400 properties in the UK following an 18 month transformation programme to implement a new occupier focussed operating model. Previously he has held leadership roles in Mitie and Capita Real Estate with a focus on Property Management, Facilities Management and Sustainability services. During this period he has also developed a number of Smart Building propositions which incorporate well-being, asset and energy data to support better decision making in the built environment
Questions answered in this episode
- With the demand for Space-as-a-Service and flexibility growing year on year, what are you seeing from your customers?
- What do you consider flex space?
- You've launched your own Space-as-a-Service brand - are you now competing with the "Weworks" of the world?
- What percentage of your buildings will be dedicated to SpaaS or flex?
- Will your valuation model change?
Value Bombs and tweetables
- We need to stop talking about sqft and cost per sqft and talk about outcome - how the space works for a business.
- We’re using net promoter scores to see how people like working in a building
- We want to understand what the occupier is using a space for, the right conditions to make that category of business work and measure metrics to understand if the space is successful for a business
- Stop thinking about productivity gain, and start thinking about providing a space that gives people a chance to be successful.
- Positive outcomes enable premium rents.
Service will be the differentiator when offices are a commodity
- People will stay in buildings longer that provide a great service thereby reducing void periods and directly affecting building valuations.
- Many assets won't be able to keep up with the changes in market demands, and we'll see some stranded assets which are difficult to exit.
- It's about what can be done to protect investments from decreasing in value.