HqO unveils 2024 State of Real Estate Experience (REX) report, highlighting:
Two-thirds (67%) of global employees agree that workplace design contributes to their enjoyment in the office.
43% of global employees do not believe their workplace contributes to environmental sustainability.
89% of global employees feel that when they are in the office, focused work at a desk is the most important activity they need their workplace to support.
BOSTON, March 27, 2024 (GLOBE NEWSWIRE) -- HqO, the world’s leading real estate experience platform, announced today the release of its 2024 “State of Real Estate Experience (REX)” report. Leveraging global data from close to 400,000 employees across nearly 200 organizations, this report brings focus to the challenges and opportunities in front of property owners, operators, occupiers and investors, all through the lens of real estate end-users. With proprietary customer sentiment and preference data, HqO’s State of REX provides a crucial roadmap to understanding and navigating the complex CRE terrain by highlighting key REX trends reshaping the CRE industry, the 2024 in-office must-haves, and an overview of the strategic approach businesses must adopt to succeed.
The fight to quality.
Across the world, CRE leaders are grappling with significant obstacles, from high vacancy rates to sluggish economic growth. A critical cause found by the State of REX report is the lack of high-quality workspaces. This hindrance is a major productivity killer, affecting about 1 in 4 employees across the globe, and potentially derailing many businesses' shift towards a successful hybrid work model.
“The industry is on a knife’s edge right now. While the overall economic picture is challenging, there are opportunities for owners and operators who focus on providing high-quality, real estate experiences within their spaces to succeed,” said Chase Garbarino, Co-Founder and CEO at HqO. “This year’s REX report underscores a crucial point: organizations need to not only measure and understand the preferences and sentiments of end-users of their real estate, but leverage those to create outstanding experiences. We now know, for example, that over two-thirds of employees agree that their workplace design contributes to their enjoyment and engagement when in the office. This is a clear indication that a positive real estate experience is vital to encouraging people into the office.”
Chase added: “Our findings in our State of REX report paint a concerning picture for the commercial real estate industry. While a staggering 80% of U.S. employees agree that the design of their workplace is important to them, a much lower 36% believe their workplace enables them to work productively. This significant gap highlights a critical disconnect between employee needs and the reality they experience within their offices. To thrive in today's competitive landscape, businesses must prioritize understanding and optimizing the real estate experience of their employees. Data-driven decisions are essential to bridge this gap and unlock the full potential of their workspaces.”
Sustainable spaces - no longer a “nice to have.”
The report findings highlight a growing focus on sustainability among occupiers and their employees. Research from Deloitte found that 69% of employees want companies to invest in sustainability efforts. Yet HqO data indicates that nearly half (43%) of employees do not believe that their workplace contributes to environmental sustainability. Businesses can close this gap by implementing and investing in projects that seek to decarbonize assets, operating buildings with greater efficiency and most importantly communicating these benefits to the users of the space. Engaging with the people that use spaces will help contribute towards more sustainable behaviors and outcomes.
Only a customer-centric, data-driven approach will do.
While significant challenges remain for the global CRE industry as a whole, there are major opportunities for those who get it right, which often means reverting to the basics. Focusing, for example, on the top five office essentials uncovered in the report - a good desk, chair, access to refreshments, a high level of general cleanliness, and access to temperature control - will help deliver the deep-seated need for stability, reliability, and comfort employees want, and now demand from their work environment.
Chase Garbarino added: “Adopting a customer-centric, data-driven approach doesn’t just translate to better decision making about the design and management of real estate experiences for the end-user, it enables owners and operators to impact their bottom line by driving tenant retention, leasing velocity, CapEx and OpEx optimization, and increased NOI,” said Garbarino.
The State of REX compiles and reports on data gathered by HqO’s Intelligence product suite which measures and assesses the health and performance of a customer’s experience within a property. This proven methodology has been trusted over the last decade to solicit feedback from over 1.8 million employees from 8,000 workspaces.
About HqO:
HqO is leading the transformation of the way people experience real estate. Through its Real Estate Experience (REX) Platform—a powerful and dynamic suite of applications and services—HqO has powered over 400 million square feet at over 700 properties across 32 countries. The world’s most innovative organizations rely on HqO to drive operational excellence by maximizing and boosting tenant and employee acquisition, retention, and engagement.
For more information, visit www.hqo.com.
For additional questions, please reach out to HqOPR@boathouseinc.com.