Regeneration – The Evolution of the Commercial Sector
Tuesday, March 12, 2019
On Thursday 7th March our Founder and Chief Liberator, Jamie Vine, presented at the recent Property Council of Australia conference entitled “Regeneration – The Evolution of the Commercial Sector” at Crown Perth.
The conference aimed to address how we adapt to the 'age of change', stating that modern businesses have a growing need for work and life to operate in harmony.
The event aimed to explore reactivating office spaces to improve vacancy rates through a myriad of case studies, new models and renewal strategies.
Jamie’s presentation focused on the evolution of outsourcing and the 'great real estate divide'.
He explained how the way businesses operate had changed over the last 50-60 years from a strategy of ‘Own & Manage’; which resulted in bloated management structures with less focus on core business and no agility, to ‘Strategic Partnerships’; where businesses even outsource elements of their core business if someone can do it better than them.
This has led into what Jamie calls the 'Great Real Estate Divide', where he described the disconnect between 'what tenants want' and 'what landlords need' to make real estate investment and ownership viable.
The conclusion was that building valuations are driven by WALE (weighted average lease expiry) where long leases, high rents and upward only rent reviews drive an increase in value, versus an occupier led market where tenants want flexibility, service, low cost of entry, speed to market, amenities and service delivery, that ultimately allows them to focus on their core business while reducing their balance sheet liabilities.
Jamie then highlighted how tenant wants and landlord needs can both be addressed by 'Flexible Workspace' operators like Liberty. Flexible Workspace operators can provide landlords with secure long term income whilst delivering the flexibility, service and amenities that occupiers crave.
After his presentation Jamie participated in a panel discussion alongside Shelley Ritter (Director at Savills) and Darrel Williams (Director at Norman Disney & Young) which was moderated by Fran Lawrence (Director – Corporate Affairs at Cannings Purple) which explored what’s next in relation to outsourcing, building amenities and design.