Tech's Role in Creating Destination Spaces

Although the rise of technology in the consumer sector has created some unintended challenges for commercial real estate landlords over the past decade, the future of top-tier office, retail, and industrial spaces is set to seamlessly integrate technology to enhance the tenant experience. According to a new study from JLL, the future of top-tier commercial real estate in the U.S. and abroad involves blending technology to create experiences and provide superior services to tenants and customers.

Findings from the JLL Global Consumer Experience survey reveal that investors and developers worldwide can expect greater demand for “destination” spaces and experiences across all asset classes. Consumers are seeking tailored experiences and are willing to share plenty of data in exchange, the report said.

JLL surveyed more than 3,200 individuals from 26 cities globally and concluded that live-work-play environments have become a key driver of consumer spending among the urban middle class.

“The digital world has been with us for some time now,” said Lee Daniels, managing director of global growth and innovation at JLL. “People have come to expect digital elements at home, work, and beyond, for greater convenience and better experiences.”

The adoption of integrated technology—such as digital check-in and room service in the high-end hospitality sector—has been around for years, but it’s now expanding into office, retail, and even urban planning, the firm found. Investors, developers, and government officials who leverage data to evolve their real estate are more likely to meet the demand for experiences consumers crave and deliver long-term value, according to JLL.

The firm pointed to projects like King Abdullah Financial District in Riyadh and Paddington Central in London, which have integrated smart technology to capture data and offer unique experiences for visitors and workers alike. Daniels noted that while technology is key to facilitating these experiences, investors must first understand the needs of their customers and tenants. This allows owners of existing real estate and stranded assets to implement a long-term vision for redevelopment while supporting interim strategies in phased developments.