TWEP - Episode 14 - The New Age of Tenant Advisory

The Workplace Experience

Over the last twenty years, the baseline on determining the amount of real estate a client required was originally crudely estimated using the formula - Headcount x 10m2.
Tenant advisors traditionally snubbed the importance of the discoveries made by the Workplace Strategist which often revealed how their client employees worked and what parts of the organisation needed what facilities.
This has a direct correlation to the amount of space that was truly required on the go forward by the organisation.
The physical facilities provided in the workplace truly became an enabler or would disable the clients business, long after the tenant advisor had collected their fee and left the building.
It often meant the crude 10m2 per person was actually 15m2 per person or even as low as 8m2 per person.
In my two decades in the space of workplace I have seen both outcomes and lucky for my clients I had close to two decades doing the commercial deals with various landlords. So I do truly understand how the two worlds need to meet and complement each other. It can defiantly now not be us and them. This old school thinking will only see the things end in tears.
This crude back of a TAB ticket method of calculating the required amount of space has often lead to many organisations carrying either a significant amount of surplus real estate and therefore cost for space that is has very low capacity, which creates a sub-lease issue for the organisation often when there was no appetite in the sub-lease market.
Or on the reverse - the clients have outgrown their space in the first 20% of their total lease term, with no capacity to grow. Therefore creating a problem for expanding businesses on how they can accommodate new headcount.
Opps, sorry, lets take a step back for anyone who does not know what a TAB ticket is, its a small rectangular piece of paper where you cross the boxes and place your bet on the throughbreds, plate lickers or thieves on wheels - ohh now - ok plate lickers are greyhounds and thieves on wheels - harness racing -
So now hopefully I have explained any confusion away...back to it....
But the new age tenant advisor needs to know your business, your people, its culture and the organisations trajectory for the five to ten years.
Its not about the tenant advisors opinion of how people work and where they work in other organisations.
Your people and your business needs will not be the same as the client that the tenant advisor did the deal with last week. These opinions, the one size fits all approach is very very dangerous and will lead you into hot water territory.
Tenant reps who are puffing their chest out and spruking they have saved their client on a "make good" which by the way should be a given is not something that deserves thanks and kudos . Its a small part of their responsibility.
Often the CFO's don’t really care, as they don’t think they will be around in 5 or 10 years time to take the credit .
This does not necessary make it right either.
The post pandemic world of the office has changed the role of the tenant advisor for good. Some would say its turned it on its head. And will lead to renewal within the industry.
Its important that we don't lose the experience out of the industry, that's not good for anyone, but your tenant advisor needs to move with the times often upskilling, with ongoing education to meet the changing needs of the market.
It is more than just the commercial numbers that secure the best lease and best performing workplaces today. It's about the facilities, amenities and the wider neighborhood. Does your tenant advisor get this? If not, get yourself a new one. Leave the dinosaur at the kerb, otherwise you may end up there as wel