The COVID-19 lockdown has forced companies to come to grips with digital technologies, fast. Digital transformation is taking place at every level: from work from home policies to virtual events.
Global statistics indicate that the companies that are thriving in today’s climate are those who have successfully embraced technology. Having access to accurate data and being able to rapidly deploy digital technologies is proving to be the greatest competitive advantage in 2020.
Improved Data, Better Decision Making
Previously a slow adopter of technology, commercial real estate has evolved from thinking ‘location, location, location’ to ‘location, experience, analytics’.
Galetti Corporate Real Estate has embraced this shift and developed reBASE Core, a proprietary analytics system which allows clients to better manage and optimise their commercial real estate portfolio.
This allows us to go beyond the realm of traditional advisory as we transition towards informed decision making though real-time analytics.
Sub-Letting has Changed the Landscape
Often overlooked, commercial real estate remains one of the largest assets in a company’s portfolio.
Many companies are trying to optimise their office space during lockdown, but in order to do it, they need access to data.
An emerging trend in the commercial property market is that of increased vacancies and reduced rental rates to attract new tenants. The main driver of this is not only the vacancies themselves but a new entrant to the market, sub-lessors.
Large occupiers across the board are subletting their space, typically at rates below market or alternatively with significant incentives to attract tenants. This trend has the potential to drive down market value and loose both sub-lessors and landlords’ money, presenting a significant challenge to the industry.
A Data-Driven Solution: reBASE Core
reBASE maps out vacancies in commercial nodes and ownership information in real-time, allowing us to model the market accurately.
The trend of reduced rentals was actually identified by this software and shows vacancies of up to 20% greater than those being reported in the office market in certain nodes.
We use this information to advise our occupier clients where they can price themselves for renewal and early renewal scenarios which are commonplace in the current market. This gives our clients a significant advantage, while helping landlords to retain existing tenants.
Interested in finding out more? Chat to our team about reBASE Core.