How COVID Will Create a Boom in Commercial Real Estate Revenues

At the start of the pandemic, the status of the world was uncertain, and the commercial real estate sector was no exception. Layoffs and furloughs were common, which led to a feeling of anxiety felt by many. But then something interesting happened: many companies made it through the start of the pandemic and started to look for ways to grow, and hiring was a huge focus. 

But suddenly, employees were hard to find. We started experiencing “The Great Resignation”, where an astounding number of people were quitting jobs that just weren’t working for them. While we’re still in the midst of an employee shortage, it’s time for companies to pivot again. Filling seats is a thing of the past: the global pandemic has shone a light into the benefits of and demand for a hybrid work model.  

Tenants do want to come back to the office, just on their terms. One of their most significant requests to return to office isn’t free lunches or access to amenities; in fact, 50% of tenants want transparency around building policies, including cleanliness. 

‍High Quality Tenants Value Transparency

Office footprints will likely shrink, but there’s a way to boost the number of tenants (and high quality tenants, at that) in buildings while increasing rates. The path forward will be providing value-added services like transparency and granularity into cleaning practices in tenant spaces. Mero Comfort or Density's Employee Experience are examples of products that provides this. These policies will draw tenants and create higher demand for these types of buildings. 

Beyond transparency - smart cleaning technology is key, showing transparency on dynamic cleaning practices. Mero’s smart cleaning and smart washroom technology can not only send cleaners where they’re needed most, but also provide transparency to tenants into when washrooms or office areas were last cleaned, the levels of critical supplies, and how many visitors are in there currently. This type of transparency could not be more critical at a time when people are thinking about cleanliness and hygiene like never before. 

These policies and technology will become a requirement by tenants sooner, rather than later and will be able to be included in per square foot costing. The result? Despite talk of shrinking office plans and hybrid work models, buildings will see increased revenues from tenant demand for smart buildings, and the benefits of Mero’s technology are one way property managers can start increasing revenues - despite changing space requirements. 

It’s clear - smart washroom technology and smart buildings are the only way forward. The numbers support this - connected devices in commercial buildings are expected to number up to 3 billion by 2025. Mero is helping companies not only stay at the forefront of the industry, but also grow revenues for property managers by introducing new, innovative ways of providing service. If anything, the pandemic forced the commercial real estate industry to take a massive step forward, fuelled by smart washroom technology like Mero’s.