Welcome to Season 3 of the highly popular #WorkBold podcast.
Caleb Parker, Founder of Bold, returns for another season to challenge commercial real estate on the only podcast in the world dedicated to the future asset class called Space-as-a-Service (SPaaS).
Now downloaded in 49 countries, each week Caleb chats with the leading experts in commercial real estate to prepare you for the new world of service in real estate.
This season we have a solid lineup - including Canada Life Investments, CBRE, KPMG, Nuveen and Trilogy Real Estate to name a few - with a focus on valuation methodologies, and more expert discussion on Space-as-a-Service.
This podcast is for anyone involved in commercial real estate in any way. If you’re an investor, fund manager, developer, property manager, agent or broker, be sure to subscribe so you don’t miss an episode.
Don't have time to listen?
(Read the transcript of this trailer below)
Welcome back to the WorkBold podcast
Where we chat with the leaders in commercial real estate to answer all questions Space-as-a-service.
I’m your host, Caleb Parker, and you’re listening to a preview of season 3, where Space-as-a-Service Comes of Age.
I’m coming out swinging this season. Demand for Space-as-a-Service will overtake demand for long-leases soon. It’s time for the capital markets to wake up. Because what happens to value when demand for your product, long leases, goes away. It’s time for Space-as-a-Service to have it’s own asset class, with industry recognized risks and yields, and perhaps a new type of investor profile.
Each Sunday over the next 10 weeks we’ll drop a new episode with the leading experts in commercial real estate to prepare you for the new world of service in real estate. We have a solid lineup, including Canada Life Investments, CBRE, KPMG, Nuveen and Trilogy Real Estate to name a few.
If you’re tuning in for the first time, I am Caleb Parker, Founder of Bold, the Space-as-a-Service brand for entrepreneurs and innovators. We are now part of the NewFlex family of brands, and we help asset owners and landlords drive value by future proofing their portfolios.
But enough about me. Let’s get down to business.
Real estate has been, done, the same way for the last century. And, the customer has always been, the people, who are investing in real estate. But, the customer today is, really the person who uses the building. It could be the people who are in a lease for 10 years, it could be the people that are popping in for a meeting room, for a day, or it could be the guest of those meetings. But the end user, the person coming to the building is really the customer. And so I believe real estate needs to move from product to service, and service those customers.
I believe entrepreneurs and innovators make the world a better place. Over the last decade, I’ve dedicated my work to supporting and championing entrepreneurs. I love entrepreneurial thinkers. I’m an entrepreneur at heart.
Today business deals happen faster than ever. We contract with people thousands of miles away online and on-demand. Our work is not restricted to a static location. We don’t “need” an office to work from.
Our work happens everywhere: at home, on a plane, on our mobile phones.
But, to grow and succeed, sometimes we do need a place to come together with our team, our customers, and our partners.
Commercial real estate hasn’t been friendly to entrepreneurs, though. “If” we’re approved, we have to pay big deposits, spend thousands on legal fees to oblige us to pay for a long time, for the right to a white box that becomes our responsibility to make it fit our culture and business needs, and then pay more to make it a white box again when we’re done.
This is the opposite of what a fast-growing company needs from commercial real estate. Yes, we need access to fantastic environments sometimes, but we also need agility. We need to manage risk. The logic of permanent offices and expensive long leases feels outdated in this new economy that we’re in.
I’m not trying to beat up on commercial real estate. It was natural for the industry to operate as it has because the customer has always been the investor, not the end-user.
But it’s time to flip this and put the customer at the center of our universe.
Demand for Space-as-a-Service from the end-user has been growing steadily since the global financial crisis of 2008, and we’ve seen massive growth in the last few years. The end-user must become the customer.
Because what happens to value when the demand for your product goes away?
And it’s not limited to entrepreneurs and small businesses.
Schroders chief exec Peter Harrison was quoted by the Financial Times last week saying “In the space of a few months, we have made 20 years’ progress in attitudes towards flexible working and we are going to continue with this momentum.”
If that doesn’t make you reflect, nothing will.
I could list all the headlines of companies like Twitter, Facebook, Amazon and so many more going remote first, but you’ve seen these headlines.
Perhaps a more powerful, and impactful announcement was that PwC Expects the Majority of their U.K. Staff to Work Remotely after the Virus, BUT “A blend of office & home working is the future” - stating there’s still very much a place for the office.
I say the traditional office is dead. The office as we knew it is dead.But “the office” is not dead.You see, companies who lean into the future are using flexible working as a talent acquisition tool.
So the future is about workplace choice, democratising the choice of where people work.
More than ever, we will have a choice of where, when, and how we work. We will choose places where we feel taken care of and produce our best work.
That’s what Space-as-a-Service enables.
The fundamentals of Space-as-a-Service are hospitality-driven. Buildings should provide customers with everything they need in one place paired with excellent customer service, to really drive value from that building.
Customers want flexibility and on-demand accessibility. That’s not just about the building. It’s about providing a space for customers to live and breathe their creativity. It’s about creating a consistent experience, a brand that connects to specific customer personas.
Landlords who are able to provide this are set to be the big winners of this change. By offering Space-as-a-Service, landlords can future-proof their assets, monetize their space, and drive value for customers and themselves. We need to put the customer at the center of the universe and build from there.
In a flexible working world, this is what keeps paying customers in a building, not long leases.
So building valuations need revising to at minimum recognize revenue generated by Space-as-a-Service. But I believe we need a new asset class to value the buildings which shift from the static white box to providing layers of dynamic service to the customer of today, the building user.
And that is how Space-as-a-Service comes of age.
Thank you for listening, we have a great season ahead with a focus on the valuation topic, and more expert discussion on Space-as-a-Service.
Don’t forget to subscribe in iTunes, or your preferred podcast listening app.
And remember, Fortune Favours the Bold.