How can you identify underutilized spaces in commercial real estate?

Understand that each industry within commercial real estate is different. Industrial loves proximity to customers and highway access. Office likes close proximity to where employees live as well as amenities & employee safety. Retail loves demographics; rooftops, disposable income, traffic counts, and proximity to competition.

Here are a few ideas: - Do Tenant surveys for direct feedback. Tenants have the lowdown on what works and what doesn't. - Look at financial reports to identify underperforming areas. If some areas are not making money as they should, then it is time for a makeover. - Use smart sensor data for real-time space usage. Make sure to look around the property. If you notice quieter spots, they are your canvas for creative makeovers like pop-up collaboration spots or a zen den. Employers are looking for ways to incentivize employees to return to their offices. Watch out for trends like co-working spaces, as today's world loves an adaptable space. There is a demand for high-quality spaces, so sprucing up buildings is a good idea.

Under utilized spaces in a property are best analyzed by gathering this data: - What is the demographic - What activities/lifestyles are typical - What is the feedback from tenants as well as onsite staff? Can an unused office area be repurposed for storage, lockers, gym, rentable entertainment space, etc? Can a prior storage area be converted into a studio unit? Can common areas host community events to improve resident relations, awareness, etc

Maybe also good to start from scratch to look at the land grant plus any code changes during the period to better understand the latest allowable parameters. Some new opportunities may pop out during the process also.

- Optimize commercial real estate by identifying and maximizing underutilized spaces. - Use data analysis, employee feedback, and flexible work policies to address underutilization. - Utilize workplace management software to analyze occupancy data and identify consistently unused areas. - Conduct regular space audits to physically assess utilization. - Measure performance using metrics like occupancy rate, peak usage hours, and booking frequency. - Engage with employees to understand their needs and preferences. - Evaluate if each space is being used for its intended purpose. - Assess how well the workplace accommodates flexible work arrangements.

In my experience, I think it’s important to also include the human perspective a lot of times analytics can’t produce the information that empathy, interviews and discovery work can when having insight interviews and assessments

Employ data visualization tools to represent complex information in a comprehensible format. Utilize maps to visually identify underutilized spaces and trends in specific areas.

This involves evaluating current occupancy rates and comparing them to market benchmarks. Conducting a thorough space utilization analysis, including assessing the efficiency of floor plans and common areas, can reveal areas with untapped potential.

Base decisions on data-driven insights. Identify underutilized spaces and take strategic actions, such as redesigning layouts or adjusting lease structures, to optimize usage.

Utilize analytics to assess foot traffic, occupancy rates, previous usage, and lease expiration dates. Conduct surveys to gather tenant feedback and leverage technology for smart building solutions, enabling informed decisions based on real-time utilization data.

Establish continuous monitoring systems for ongoing evaluation. Regularly assess space utilization metrics to track changes and identify emerging trends, ensuring proactive decision-making.

Paying more attention to what makes a commercial real estate helps u identify what is lacking. Which is what makes it underdeveloped.

To identify underutilized spaces in commercial real estate, analyze foot traffic, assess lease agreements, and consider spatial functionality. Conduct surveys or engage with tenants to understand their needs and evaluate if current space allocation aligns with usage patterns. Additionally, explore trends in your industry and local market to identify opportunities for repurposing or optimizing space.

Foster collaboration by sharing relevant data with stakeholders, including tenants and property managers. Encourage open communication to understand specific business needs and preferences.

Embrace innovative technologies for data collection and analysis. Explore machine learning and AI for predictive analytics, enabling proactive identification of underutilized spaces. Foster a culture of continuous learning and adaptation based on data-driven insights.

Very simple: 1. Count up vacant stores see from the street 2. Count up broker listings for the leasing and subleasing of offices and stores

Regulatory Compliance: Ensure data practices align with privacy and compliance regulations. Security Measures: Implement robust security measures to protect sensitive data. Scalability: Choose data solutions that can scale as the property portfolio grows. User-Friendly Platforms: Opt for user-friendly data tools to encourage adoption and utilization. By addressing these considerations, the identification and optimization of underutilized spaces in commercial real estate become a dynamic and responsive process.

Rather than spending hundreds of hours online I would call some appraisers and surveyors! They know but usually don’t have the time or resources. Thoughts?

Here’s something to consider. Every tool and metric has its value. But a master tool in the hands of a novice has the potential to be disastrous. A strong and unified team, with the best tools for analysis and planning, is the best solution. In my humble opinion.

If you have spare office space, the best way is to call IWG PLC in your country, to learn about quick monetization of that space