Real estate has always been perceived primarily as a product – buildings to be bought, sold, and leased. However, digitalisation and the growing prevalence of smart buildings have brought about new ways to approach real estate spaces and this business model.
Technology has contributed to the rise of Real Estate-as-a-Service (REaaS), which moves away from the focus on tangible assets to a more holistic approach centred around systems and services.
What is Real Estate-as-a-Service?
Rather than the conventional landlord-tenant relationship of the traditional real estate model, which focuses primarily on leasing physical spaces, REaaS emphasises the creation of holistic environments that cater to the ever-evolving needs and preferences of tenants through a comprehensive suite of services and amenities.
The cause of this change can be attributed to how work has evolved. With rapid digitalisation and the shift to a hybrid work schedule borne out of the pandemic, we no longer have to always go to a physical office for work. Instead, the function of an office has transformed into a place for collaboration and design.
To reflect this change, the physical infrastructure of the commercial building must adapt. As part of the REaaS model, real estate owners should focus on what benefits tenants the most. Whether it is quiet workrooms, collaborative meeting spaces, or shared spaces promoting social and mental wellness, landlords can create and curate this user experience. That is where real estate is heading.
How can Real Estate-as-a-Service benefit building owners?
REaaS offers commercial real estate owners a unique opportunity to discover new value in their properties. By centring real estate around systems and services, property owners can benefit significantly from this holistic approach.
Benefit #1: Enhanced value proposition
By considering the experience of occupants and users, property owners can create environments that are not just physical spaces but places that cater to the needs and preferences of the people within them. For instance, services that enhance well-being and productivity, such as wellness rooms or collaborative workspaces, can contribute to increased productivity and satisfaction, making the premise a better value proposition for tenants.
Benefit #2: Smart technology integration
A part of the REaaS model involves integrating smart technology to enhance user experience and efficiency. Through Internet of Things (IoT) devices incorporated into buildings to collect and analyse data, property developers can utilise this information to optimise energy usage, enhance security, and improve overall operational efficiency, creating a more personalised and comfortable environment for tenants.
Benefit #3: Reduce Environmental Impact
REaaS also enables building owners to reduce their environmental footprint through the integration of eco-friendly solutions and retrofitting of buildings. This not only aligns with global efforts to combat climate change, but also positions the property as a responsible and attractive investment in an era where sustainability is a key consideration.
Keppel’s Real Estate-as-a-Service business model
Keppel’s Real Estate-as-a-Service offers a comprehensive suite of solutions to help commercial real estate owners enhance their end-user experiences and space usage. The Sustainable Urban Renewal (SUR) initiative, which is a part of our REaaS model, transforms assets into sustainable developments, achieving Environmental, Social and Governance (ESG) goals.
Keppel’s suite of solutions includes:
- Asset Enhancement
Retrofitting of building facades and interior aesthetics is made sustainable through our design and selection of solutions.
- Asset Infrastructure Solutions
From chillers and solar panels to lifts and lighting, we design and deploy the best solutions for your asset to reduce energy usage intensity and carbon emissions.
- Shared Amenities and Placemaking
We plan and implement efficient shared spaces that achieve environmental goals, as well as cultivate social and wellness benefits through placemaking.
- Green Leases
We create and manage green leases that help users achieve their sustainability targets for ESG reporting.
- Smart Asset Operations
Through smart and responsive backend information systems, we reduce inefficiency in asset maintenance and optimise resource consumption.
- Workspace and Enterprise Solutions
We provide end-to-end solutions to design, build and operate office spaces for user well-being while being sustainable at the same time.
These solutions not only redefine traditional thinking about real estate but also provide building owners with an all-in-one service.
REaaS is not just a buzzword; but set to be a transformative force in the real estate industry. By embracing a holistic approach, leveraging technology, and redefining traditional thinking, it offers commercial real estate owners a competitive edge, aligns with global sustainability goals, and provides a convenient one-stop solution for their diverse needs. Reach out to us to explore how our suite of REaaS solutions can empower you and your properties.