The commercial real estate (CRE) landscape is constantly evolving, and effective space management has become a cornerstone of success. A recent survey conducted by Building Engines in partnership with Building Owners and Managers Association (BOMA) sheds light on the current priorities and trends shaping space management practices across the industry. 

Top space management priorities 

The survey of 125 industry professionals revealed four key space management priorities: 

1. Managing leases 
2. Maximizing rentable square footage (RSF) 
3. Improving HVAC/energy efficiency audits 
4. Workplace redesign 

How is space management shaping the CRE industry?

Listen to this exclusive webinar to hear experts unpack the recent Building Engines and BOMA report - Space management practices and trends in CRE.

1. Lease management: The foundation of success 

Lease management emerged as the top priority, underscoring its critical role in maintaining financial stability and operational efficiency. By closely managing lease expirations and renewals, CRE teams can minimize vacancy periods and optimize occupancy rates. This focus on lease management reflects the industry’s commitment to maintaining strong tenant relationships and ensuring consistent revenue streams. 

2. Maximizing rentable square footage 

Coming in second, the focus on maximizing RSF directly impacts rental rates and the ability to attract and retain tenants. Utilizing industry standards like BOMA and REBNY for accurate measurements ensures fair leasing practices and enables more strategic space planning. This priority highlights the growing importance of data-driven decision-making in space utilization. 

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3. Energy efficiency and sustainability 

The emphasis on HVAC and energy efficiency audits as the third priority reflects the growing importance of sustainability in building operations. This focus not only contributes to cost reduction but also aligns with increasing tenant demands for environmentally conscious spaces. 

4. Workplace redesign: Adapting to new realities 

Interestingly, workplace redesign ranked lower on the list of priorities. This could be attributed to the shift towards more flexible work models and a preference for adaptable solutions over extensive renovations. CRE professionals are likely focusing on quick and flexible solutions that optimize existing spaces, offering faster financial benefits while still meeting evolving tenant needs. 

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Be future ready, prioritize space management 

The survey results paint a picture of a CRE industry focused on financial stability, efficient space utilization, and adaptability. Rather than investing heavily in costly redesigns, property managers are prioritizing strategies that provide flexibility and operational efficiency. This approach aligns with current demands for resilient and efficient space management solutions that support long-term success in an ever-changing market. 

As we progress through the remainder of 2024, these trends will likely continue to shape space management practices across the entirety of the CRE sector. CRE professionals who can effectively balance tenant needs, operational efficiency, and sustainability will be best positioned to thrive in this dynamic landscape. By focusing on these key priorities, property managers and owners can ensure their spaces remain competitive, profitable, and aligned with the evolving needs of tenants and the broader market. 

Discover more statistics from the report, “Space management practices and trends in CRE.”