“Hoteling in an office space? I don’t want to sleep where I work!” A thought like that could cross many people’s minds when they hear about “hoteling” in an office.
But hoteling in a workplace isn’t about housekeeping, beds, towels, and room service. Hoteling is a reservation-based system that allows for unassigned seating, where employees can book a workspace before coming to the office. In commercial real estate, hoteling involves reserving or renting a space, such as a desk or a room, in a commercial building for a period of time. This approach provides flexibility and efficient use of office space, catering to the dynamic needs of today’s workforce.
And for commercial real estate professionals and investors, hoteling offers an opportunity to survive a tough market.
The rollercoaster ride that is real estate today
The commercial real estate industry has had its ups, downs, twists, and turns over the years. Before COVID hit, it was booming. Then the industry took a nosedive during the pandemic. And now, it’s all about knowing your market and remaining agile to make the best business decisions.
Some regions still haven’t bounced back and there are office parks that remind you of the ghost towns you see in the movies. According to a report by the National Association of Realtors, office vacancy reached a new high of 13.7% in March.
“Specifically, there is more than double the amount of unoccupied office square footage compared to a year ago. Looking ahead, the forecast suggests a persistent increase in available office spaces,” NAR said.
However, in other parts of the world, commercial real estate has rebounded and is doing as well or better than before 2020. According to LandGate, the most profitable commercial real estate markets share healthy signs such as growing job opportunities, population growth, and lower interest rates.
In the past, the hot markets were Florida, Texas, and California, to name a few. There’s been a shift, and many are fleeing the high-cost metro areas such as New York, Miami, and Los Angeles, and relocating to various areas such as Raleigh, N.C., Nashville, TN, and Columbus, OH.
5 hoteling benefits for commercial real estate
Commercial real estate professionals and investors can make the most of this challenging situation by optimizing their workspaces through hoteling.
Tenants can reserve a space within a building. It could be a floor, a room, or simply a cubicle or desk area. The tenant can reserve the space for any period and the building manager or owner then has visibility into how often the space is being utilized.
And by digitizing and automating processes whether it is visitor check-ins or workspace rentals, you can:- Provide self-service check-ins and check-outs for tenants
- Gain visibility into who’s entering and exiting your building
- Better understand how your space is being used (or not) and adjust
- Connect back-office systems such as ERP, HR, and security with your real estate data
- Ultimately, transform your real estate data into a valuable business asset
Keeping up with the times + driving ROI
In a post-COVID world, people are living in different areas and choosing different working locations and situations whether back in the office, working from home, or a hybrid model.
To remain viable and see the ROI on their investments, those in real estate needs to remain flexible and find the most efficient and profitable ways to use their current properties. There’s still a need for commercial property spaces. The key is leveraging your data to better understand your building usage and foot traffic.
