Real Estate as a Service (REaaS)
Real estate as a service (REaaS) is an evolution within the real estate industry from viewing property as a product to a customer-centered approach viewing property as a dynamic space. The REaaS philosophy is specifically relevant for multifamily and office assets in the current work from home (WFH) landscape, but can be applied across sectors.
REaaS can take several forms, but generally involves flexible leasing, dynamic design, and amenities that improve customer experiences. In many cases, property owners rent out units as coworking office space, leveraging technology and creating meeting rooms, lounges, and work spaces. This approach can be beneficial for properties with full-floor or large unit vacancies, such as office or multi-use buildings. Other property owners may be more creative, transforming their space to fit the needs of short-term renters. Landlords frequently cater to tenants via their on-site property managers, who ask about and deliver on tenant needs. As the name indicates, real estate as a service centers around flexibly to provide optimal service to tenants.
For commercial real estate investors, REaaS presents an opportunity to find new value in office buildings, revitalize properties with a new business model, and increase occupancy in existing spaces. Per a survey of CRE industry professionals by Deloitte, many CRE firms are focusing on retrofitting properties and repurposing spaces for alternate uses to maximize value. However, only one quarter of respondents say their companies are substantially increasing technology investments to bolster portfolio and asset management capabilities*. EquityMultiple is focused on working with these more technology-enabled sponsors and operators.
The Bottom Line: The pandemic has shifted the ways in which people use their spaces, impacting the entire real estate business. REaaS offers a way to transform spaces to improve the user experience amidst this new reality. At EquityMultiple we are committed to offering real estate investments with developers that look to the future in terms of providing exceptional real estate services.
*Source: Deloitte — Deloitte Insights CRE Outlook