Problem: How to Reposition CBRE Property without a Physical Makeover
As one of the largest players in commercial real estate, CBRE Global Investors manages an impressive and diverse portfolio of assets valued at over $86.5 billion. In this field, the bottom line is all about maximizing rental agreements while minimizing vacancy rates. For this reason, CBRE Global Investors had been searching for a affordable technology solution that would expand its target prospective tenant base.
Finding that solution suddenly became a priority when, in January 2017, CBRE acquired a legacy property in downtown Pittsburgh.
Although considered a Class A asset, the building was also generally perceived as traditional and thus unappealing to the niche group of clients CBRE wanted to target: small, technology-oriented companies. Even though CBRE Global Investors recognized the potential of the space, it was unable to convince prospective tenants. The building clearly needed to be repositioned; yet the company was unwilling to invest heavily into physical renovation.
The Solution: Virtual Immersive Environments
It was to overcome this challenge that CBRE decided to adopt Space — BlockVue’s virtual reality solution for the real estate market. Space epitomizes the phrase “a picture is worth a thousand words.” It provides a template through which skeptical leasers can fill the space with their design and layout ideas. For many prospective tenants, these photorealistic immersive environments are even better than actual physical site visits.
“Our investor group is investing towards a more progressive client,” says Adam Viccaro, lead broker on the Pittsburgh project.
The Result: RFPs Tripled
CBRE was impressed by how fast Space paid for itself. Within a matter of weeks RFPs tripled, a statistic unheard of in commercial real estate. In addition, clients were astounded by the stunning visual renditions and degree of engagement that they experienced. A clear majority of users noted that the virtual reality environment stimulated the flow of ideas and helped them mentally organize the space to fit their business needs. This was exactly the solution that CBRE Global Investors was looking for: simple, clever, and cost-effective.
“Thanks to BlockVue, we’re changing the perception of a stuffy office building, anchored by a stuffy client. That’s helping us sell to a whole new user base and accelerate our transaction flow.”