Qube Space generates revenue for international real estate firm
A brokerage firm with a property management division implemented our cost effective, ‘off the shelf’ space management solution for owners and investors of commercial office space. They successfully generated revenues by targeting previously unidentifiable charge back opportunities, thus eliminating unnecessary space expansion.
A common challenge
The management team became aware of a common challenge across a number of existing commercial office client portfolios: existing tenants were claiming full occupancy, but reports were showing statistics to the contrary.
Although fielding complaints that meeting rooms were sparse, studies done on actual usage revealed that booked space was not necessarily being used. One example showed a recurring meeting scheduled in the rooms booking system belonged to an employee no longer working for their utility company client. Work stations tagged as occupied showed no actual sign of usage. A true disconnect between facilities, human resources and IT remained a challenge as they were running on disparate programs. Complaints kept coming, but audits proved there was an abundance of unused space.
Potential for change
Building owners were struggling to better understand space usage as it related to lost earnings. They had already been looking for ways to identify a cost effective, easy to implement space solution that could quickly impact revenue potential. They wanted a system with the necessary enhancements for improved methodologies to better track occupancies and monitor true space usage. What the tenant claimed was truly ‘occupied’ didn’t equate to the results generated by heat map surveys, revealing an unbalanced ratio of ‘bodies to seats’.
The office owners stood firm in their belief that additional revenue streams could be generated through charge backs. The heat map surveys afforded an improved understanding of unused space. It seemed viable that restructured specific leases could create increased earning potential. The management team set out to win the confidence of the customer by discovering a software platform that outperformed competitive solutions.
The firm reviewed every feasible option, speaking with technology vendors, implementation specialists and consultants. The challenge was daunting, with a wide range of costs. Some systems were too complicated to generate information. They wanted a web based solution to manage their clients that didn’t take forever to implement.
Selecting Qube Space
Feeling the pressure to put forth a winning alternative, a fortuitous conversation overheard at an industry event lead to an introduction between the above mentioned broker and the solutions offered by Qube Space. Discussion and recommendation was quickly followed by impressive on site demonstrations, proving the efficiencies of Qube Space. Knowing the client needed a solution that was quick to market, training and subsequent direct customer interfacing began.
It took only a few weeks from selection to implementation, and the system was working with nearly 700 bodies in 285,000 square feet of space. That positive return from the process meant the customer could accommodate for an increase in staffing, without having to increase their carbon footprint.
A successful outcome
The brokerage firm now offers Qube Space as an exciting ‘value add’ to the services they offer. By providing a more accurate quantification of space usage, the managers generate more income revenue via charge backs to existing tenants. Exciting and dynamic dashboards allow for a more visual interpretation of the existing metrics. The lead broker in the implementation commented that “…we like the product, and by using it, it differentiates us from our market competitors.”