by Lachlan MacQuarrie

As the new year begins, many of us reflect on how to improve our lives—better health, less stress, smarter habits. Yet research shows that only 10% of people stick to their resolutions. Why? Because success requires intentionality, focus, and clear steps.

This truth doesn’t just apply to individuals; it’s equally relevant in the business world. For real estate owners, 2025 presents an opportunity to reset and resolve to meet the evolving needs of tenants, address market challenges, and position assets for success. The question is: Will you be among the 10% who succeed?

The Economic Landscape: A Tale of Two Cities

The real estate market is evolving rapidly. Economic conditions are favorable—interest rates are stabilizing, the cost of capital is declining, and cap rate compression is creating more competition for high-quality assets.

At the same time, there’s a glaring discrepancy: while overall vacancy rates remain high, demand for A/AAA office spaces—well-located, amenity-rich, and aligned with tenant needs—is surging. Supply is constrained, and tenants are struggling to find space that meets their expectations.

As reported in The Wall Street Journal, this paradox illustrates how the bifurcation of the market favors quality assets. Additionally, CBRE’s observations at the Toronto Real Estate Forum highlight that while sublet availability is declining, demand for highly amenitized and strategically located office properties continues to rise.

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n Toronto, The Globe & Mail reports that the city’s office market anticipates significant lease deals in 2025, with large firms prioritizing sustainability and employee experiences. According to Nick Kordic, VP of Leasing at Oxford Properties, “The focus on quality extends beyond location and aesthetics. Large firms are committed to sustainability and to employee experiences in the building that include modern amenities and engaging, flexible workspaces.” Supporting this trend, Oxford Properties recently completed an expansion and renewal of a 300,000-square-foot lease with EY in a high-quality asset, further emphasizing the demand for well-located, adaptable environments that prioritize sustainability and modern tenant needs.

Supporting Stats: For example, Class A office properties in major urban centers have seen occupancy levels rebound significantly faster than lower-tier properties, with vacancy rates often 10-15% lower. Additionally, tenants are willing to pay premiums of 15-20% for spaces that offer high-quality amenities and robust operational technology, further illustrating the “best vs. the rest” dynamic.

Resolving to Invest with Intentionality

In 2025, the smartest owners will resolve to act decisively. Here’s why:

• The Cost of Inaction: Tenant dissatisfaction, increased turnover, and stagnant rents will plague those who fail to adapt.

• The Lessons from Resolutions: Like personal goals, success in real estate requires focus, accountability, and alignment with broader strategies.

• The Opportunity: By meeting tenant needs through targeted investments, owners can increase occupancy, strengthen relationships, and enhance asset value.

What Tenants Want Today

To close the gap between tenant expectations and current offerings, owners must focus on key areas:

• Amenities that Enhance Operations: High-functioning lobbies, gyms, conferencing spaces, food services, and flexible hoteling areas.

• Technology Integration: Building-wide Wi-Fi, virtual access cards, mobile apps for tenant convenience, and ubiquitous cell coverage.

• Wellness and Sustainability: Consistent heating and cooling, clean air, recycling programs, and community engagement initiatives.

• Cybersecurity: Robust protections for building systems to ensure tenant safety and business continuity.

Anecdote: A landlord I recently spoke with shared that their CIO, responsible for corporate security, has been hearing more from leasing teams about the importance of building safety and consistency. The CIO noted an increasing dialogue on operational technology (OT), focusing on ensuring tenant investments are not jeopardized by poorly managed systems. These conversations reflect a growing demand for landlords to prioritize secure, reliable building environments as a core component of tenant satisfaction and retention.

These elements aren’t just nice-to-haves; they’re essential to attracting and retaining tenants who value spaces that support productivity, collaboration, and wellness. CBRE’s “best vs. the rest” framework underscores that tenant preferences are rapidly reshaping expectations around modern office spaces, with a premium placed on well-equipped, secure, and user-friendly properties.

A Strategy for Action

Here’s how owners can act with intentionality and set their assets apart:

• Assess Your Building’s Foundation: Work with property managers to evaluate physical, digital, system, and operational elements.

• Map the Technology Ecosystem: Identify all systems, networks, software, and hardware, and assess how they interconnect.

• Align Capabilities with Needs: Evaluate how these elements support tenant requirements, internal goals, and capital strategies.

• Define and Align Your Vision: Ensure your vision aligns with capabilities and investments and clearly communicates a competitive value proposition.

• Synchronize Leasing and Operations: Match leasing objectives with operational realities to avoid overpromising or underdelivering.

• Prioritize Cybersecurity: Protect tenants and building systems from risks with proactive, reliable measures.

• Collaborate with a Guide: Engage experts to help maintain focus and accountability, ensuring your strategy aligns with market trends.

Intelligent Buildings: A Guide for Sophisticated Owners

For owners and managers seeking to bring this strategy to life, Intelligent Buildings offers a proven platform to address these challenges, mainly related to technology and smart building strategy and managed services around cyber security. Here’s how:

For the Advanced Manager: Securing the Foundation

Sophisticated asset managers often grapple with justifying the return on investment (ROI) of improvements to key stakeholders. Partnering with Intelligent Buildings provides an excellent way to isolate and explore ROI related to efficiencies and technology investments. This analysis can be a valuable input to securing capital necessary for unlocking investments that speed up leasing or maintain higher renewal rates, ultimately creating economic value.

For the Owner Ready to Build a Vision: Defining the Path Forward

For those who are just starting, Intelligent Buildings’ Advisory Services can help:

• Formulate a Strategic Thesis: Develop a clear vision for aligning tenant needs, building technology capabilities, and capital strategies.

• Structure the Journey: Create a roadmap for intentional investments that maximize value and attract tenants.

• Set the Stage for Action: Build a foundation that ensures future initiatives unfold in a structured, deliberate manner.

For the Forward-Thinking Owner / Manager: Combine Strategy and Action

For property managers, the real hero in a complex space is one who recognizes what they don’t know and aligns rapidly with a guide who can focus them cost-effectively. Intelligent Buildings equips property managers with inventory tools and proven cybersecurity solutions that ensure critical systems are managed effectively. Starting with expert advice ensures managers are armed with the proper tools and strategies to align operational success with tenant needs.

Wrapping It All Together

Just as successful resolutions require intentionality, clarity, and follow-through, so does real estate investment. Don’t become a statistic of failed New Year’s resolutions. The smartest owners will:

• Understand Tenant Needs: Use technology and dialogue to close the gap between expectations and offerings.

• Invest in Quality Systems: Ensure the building’s foundation supports tenant satisfaction and operational efficiency.

• Partner with Experts: Work with Intelligent Buildings to stay ahead of market trends related to technology and secure a competitive edge executing a plan.

In 2025, resolve to act with purpose. By aligning your assets with tenant needs and leveraging the tools and expertise of Intelligent Buildings, you can transform your properties and achieve your economic goals. The time to act is now.