Locale hosted its first breakfast event in London which addressed the common challenges faced by real estate professionals to achieve greater operational efficiency. The session reinforced that the industry is not struggling with what to do, but with how to operationalise it at scale under an increasing cost pressure.
Efficiency starts with people and operating models
While technology often dominates industry conversation, the most immediate efficiency gains are being driven through people and operating models. Operators are restructuring teams to create capacity rather than simply cutting costs. For example, property managers are supported by assistants, on-site inspectors are introduced to manage contractors more effectively, and dedicated engagement roles are emerging to focus on occupier relationships. This is not about reducing headcount. It is about protecting the parts of the operation that directly impact experience.
The data gap and adoption challenge
A critical barrier to progress is data, or the lack thereof. Manual processes remain widespread and standardisation is limited. This means that without reliable data, it is difficult to identify inefficiencies, justify investment, or measure impact. Even where data exists, many organisations lack the capability or structure to interpret and act on it effectively.
This feeds into broader adoption challenges. Technology is often perceived as an added cost rather than a long-term saving. Awareness of available solutions is inconsistent and change management is frequently underestimated. Successful adoption requires more than just the right tool, it requires a clear business case, strong internal champions, effective training, and communication across every layer of the organisation.
The shift to total cost of occupancy
One of the clearest shifts is how occupiers evaluate value. Service charge is no longer viewed in isolation. Instead, it is weighed alongside rent and, crucially, the experience delivered within the building. “Soft services” (cleaning, security, front-of-house) are a major component, typically making up around 30% of total service charge costs, and service charges in Central London offices can be up to 70% higher than the UK average. This reframes the competitive landscape. A building can meet every traditional requirement – the right location, specification or amenities - and still fall short if the day-to-day experience is poorly communicated. Communication, responsiveness, and transparency are no longer optional elements of management, they are central to retention and leasing performance. According to the English Housing Survey, around 62% of leaseholders believe their service charge is too high, highlighting a growing disconnect between cost and perceived value.
Communication is king
Time constraints often prevent property managers from engaging meaningfully with occupiers. Yet when communication does happen (e.g when feedback is actively sought or when service charges are explained), the impact is significant. Transparency builds trust. Engagement creates alignment. And, critically, informed occupiers are more likely to accept cost pressures when they understand the value being delivered. In many ways, getting occupier buy-in is half the job.
Changing mindsets: from tenants to customers
Occupiers are no longer passive tenants. They are informed, vocal, and increasingly expect to be treated as customers. They care about experience, responsiveness, and ESG credentials. They are willing to provide feedback and expect it to be acted upon. For landlords and operators, this requires a shift from asset management to customer experience management.
Rising pressure of lease cycles
Adding to this complexity is the compression of lease cycles, particularly in residential.
With average residential tenancies of 16–18 months, operators have limited time to deliver a strong experience before facing churn. Commercial leases are longer, but expectations are rising, and engagement is becoming more continuous. This dynamic increases both the importance and the difficulty of getting operations right. There are more moments where occupiers can choose to leave and fewer opportunities to recover if the experience falls short.
The real opportunity
Across the real estate industry, there is no shortage of ideas, tools, or strategic direction. The challenge is far more practical: how to operationalise these ideas at scale, under growing cost pressure, without eroding the occupier experience. That means:
- Freeing up time for front-line teams
- Improving communication and transparency
- Using data more effectively
- Applying technology in a targeted, practical way
When done well, efficiency and experience are not competing objectives. Operational efficiency is what enables a consistent, high-quality occupier experience.
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