New survey: AI and holistic design currently upgrade your office environment

May
2024

Steen Uno

With the COVID pandemic in the past, a still fragile global office rental market is fighting hard to retain its tenants and attract new ones by upgrading or even rebuilding their outdated property portfolios and premises.

May
2024

Steen Uno

Artificially intelligence, innovation, new holistic approaches to office design, and urgent upgrades of outdated office spaces and areas.

Amid the occupancy crisis, the international office rental industry focuses intensely on retaining tenants by updating their properties, workspaces and areas with new attractive design solutions, the latest AI technologies, wellness, sustainability and other ground-breaking facilities.

For the new MatchOffice Industry Survey 2024, seven out of 10 of the interviewed European office providers report that AI today impacts their daily business operations - 23% of them to a considerable, 10% even to a significant extent.

Corresponding studies confirm how office landlords worldwide constantly upgrade their properties, investing in new technologies, including artificial intelligence, upgrading common areas, wellness, canteen facilities, etc.

Holistic approach

"Currently, flexible workspaces are significantly focused on providing holistic office environments with high-end spaces and investments in technological innovation and upgrades.

The keywords right now are optimizing space utilization and enhancing employee experience. Landlords are working hard to retain their current tenants," MatchOffice CEO Jakob Dalhoff says.

Office landlords worldwide are making remarkable efforts to upgrade properties by
investing in new technologies, including AI, and improving their common areas and
wellness facilities, etc. Photos: AI-generated by copilot.microsoft.com

"The market demonstrates significant demand for flexibly designed, high-quality office environments with cutting-edge amenities and the best location.

Corporate tenants prioritize environmentally friendly design and integrated user-centred technologies such as touchless systems, AI-powered meeting rooms, and similar innovative initiatives," Jakob Dalhoff adds.

Growing optimism

The latest MatchOffice Industry Survey for 2024, based on responses from 1,472 workspace providers and operators in 58 countries, indicates stabilization and consolidation of both office occupancy and rental levels compared to 2023.

Among the responding European providers of flexible office leases, two-thirds expect to maintain the same initial contract length, and one in four operators aim to increase their lease periods in 2024.

In the second half of the year, almost every second (48.3%) of the European office
providers expect higher occupancy - a slight increase compared to last year.
MatchOffice Graphics

Half of the MatchOffice survey's European respondents predict that during 2024, they will be able to raise their rental prices and thus contribute to market dynamics.

In the occupancy-stricken USA, optimism is nevertheless sprouting among the North American office providers: As many as 52.8% of them look positively on their near future (against only 34.6% last year), 29.4% (against 22.2 %) are even enthusiastic about the market outlook.

The new actor

MatchOffice Industry Survey 2024 highlights the increasing use of innovative AI solutions by global office landlords and rental operators, emphasizing the growing role of artificial intelligence in the rental industry.

The survey shows that the impact of AI on day-to-day business operations and office workflows varies significantly from country to country and continent to continent. In Europe, 23% of the landlords interviewed report a significant impact, and 10% report an extensive impact from AI implementation.

In the US, 34% of landlords use artificial intelligence to a remarkable and 29% to an extensive extent. In Asia, as many as 49% of rental players use AI tools to a high, and 36% to a considerably large extent.

"Already, AI has an impact on the design and construction of commercial properties,
data analysis of building design, materials, energy consumption," MatchOffice CEO
Jakob Dalhoff points out.

"AI already has a significant influence on the layout and construction of commercial properties, data analysis for building design, materials and energy consumption to optimize building performance and reduce the CO2 footprint.

Landlords are indicating that they are moving towards a future where artificial intelligence will assist them in making much better portfolio decisions, identifying cost savings, improving efficiency, analyzing market data, and much more," Jakob Dalhoff points out. ●

Read the MatchOffice Industry Survey 2024

Back to all news