Building operations and experience (BOE) is an approach to commercial real estate that brings building operations, workplace experience and property management together. The aim is buildings that are not just functional but also engaging and efficient for everyone who uses them.
Tenants expect more, technology is reshaping how buildings run, and the industry is shifting from simply managing properties to creating experiences. BOE sits at the center of that change. In January 2025, CBRE’s move to acquire the flexible workplace provider Industrious showed how seriously the largest firms were taking it.
What is building operations and experience (BOE)?
Building operations and experience (BOE) is a people-focused upgrade to traditional building management. It is not only about keeping the lights on and the elevators running. It is about making buildings work better for everyone in them, including tenants, employees, visitors and the people managing the property, so they become places people want to be.
Traditional building management treats a building as an asset to maintain. BOE treats it as a service to the people inside it. That shift matters for owners, because tenant experience affects retention, and for occupiers, because the building shapes how employees feel about coming in.
Why did CBRE go all in on BOE?
CBRE went all in on BOE to offer tenants a single, scalable service that combines flexible workspace with facilities and property management. As reported in January 2025, the commercial real estate giant moved to acquire Industrious, a flexible workplace provider, to start an entirely new BOE-focused business segment.
CBRE announced the plan in a press release, and The Wall Street Journal reported that the firm was going all in on co-working.
It was not CBRE’s first step in this direction. Back in 2020, CBRE invested in Industrious, taking a 40% equity stake and a $100 million convertible note. By combining Industrious with its existing services, such as facilities management and property management, CBRE set out to build a one-stop offer covering everything from offices to data centers to warehouses: global, scalable and centered on the tenant.
What are the three parts of BOE?
BOE blends three core elements into one approach: property management, building operations and workplace experience. Each already exists as a discipline. BOE’s value comes from running them together, so that decisions about leases, building systems and the employee experience inform each other instead of sitting in separate teams.
- Property management: the nuts and bolts of running a building, such as leases, rent collection and tenant relations.
- Building operations: keeping systems such as HVAC, lighting and security running smoothly and efficiently. HVAC stands for heating, ventilation and air conditioning.
- Workplace experience: designing workspaces, adding amenities and integrating technology so the tenant and employee experience is excellent.
Together, these help buildings perform better, keep tenants happy and add value for property owners.
Why are companies adopting BOE?
Companies are adopting BOE because it links tenant experience to financial results. A better experience improves tenant retention and attracts new tenants. Integrating operations with experience can cut energy costs and improve efficiency. Together, happier tenants and efficient buildings raise asset value and set a property apart in a crowded market.
- Happy tenants: a focus on tenant experience means better retention and new tenants knocking at the door.
- Better building performance: integrating operations with experience can cut energy costs, streamline operations and improve efficiency.
- Higher property value: happy tenants and efficient buildings mean higher asset value.
- Competitive edge: in a crowded market, an exceptional experience sets a property apart.
For occupiers, the same logic applies inside the office. Employees need to book desks and rooms, host visitors and find colleagues without friction. The office space planning guide covers how to plan space around real demand.
What technology makes BOE possible?
Technology makes BOE possible by connecting building systems, sensors and people through shared data. Building management systems control operations in real time, IoT sensors measure conditions such as temperature and occupancy, tenant apps connect people to services, and analytics turn the combined data into better decisions about the building and how it is used.
- Building management systems (BMS): software that monitors and controls building operations in real time, helping reduce energy use and catch issues before they escalate.
- IoT devices: internet-connected sensors that collect data on everything from temperature to occupancy, helping personalize spaces and improve efficiency. Imagine a building that adjusts lighting and temperature to your preferences as you move through it.
- Tenant engagement platforms: mobile apps that connect tenants to building amenities, services and each other, building community and making feedback easier.
- Data analytics: analyzing data from multiple sources to predict trends, improve operations and make smarter decisions.
On the occupier side, workplace occupancy data shows how people actually use the space, which is the foundation for decisions about how much of it an organization needs.
What are the challenges of BOE?
The main challenges of BOE are data security, finding skilled staff and upfront cost. BOE collects large amounts of sensitive data that must be protected. Its systems need people who can run them. And the sensors, system upgrades and software it depends on can be expensive before the long-term savings arrive.
- Data security: BOE collects sensitive information, from tenant preferences to operational data. Strong cybersecurity is essential. Companies must invest in encryption, firewalls and other tools, and stay compliant with data privacy regulations.
- Skilled workforce: running BOE systems takes tech-savvy people who can manage IoT devices, analytics platforms and smart building technologies. Hiring or upskilling them, and keeping them, can be hard in a competitive job market.
- Upfront costs: installing IoT sensors, upgrading HVAC systems and integrating software platforms adds up quickly. The long-term benefits, including lower energy bills, streamlined operations and happier tenants, can still make it a worthwhile investment.
What is the future of BOE?
The momentum behind BOE is driven by three forces: rising tenant expectations, pressure to make buildings more sustainable, and advances in AI, IoT and analytics. Together they push property managers to rethink building design and operations, and they make buildings places that support creativity, productivity and collaboration while staying efficient.
- Rising expectations: tenants are no longer satisfied with a merely functional workspace. They want flexibility, modern technology and amenities that improve their experience.
- Sustainability: energy-efficient systems and smart technology cut energy use and operating costs, help meet sustainability goals and appeal to environmentally conscious tenants.
- Technology advances: predictive maintenance that prevents costly breakdowns and smart systems that adapt to tenant preferences are setting new standards for building management.
Where does Kadence fit in BOE?
Kadence works on the occupier side of BOE: the workplace experience inside the building. Its space management tools help organizations allocate space, let employees book desks and rooms, and adjust availability using real-time data. Teams can coordinate their office days and navigate their day, while analytics support better decisions about space use. Automation simplifies everything from visitor management to desk booking.
To see how Kadence supports better workplaces, book a demo.
Frequently asked questions
What does BOE stand for in real estate?
In commercial real estate, BOE stands for building operations and experience. It combines property management, building operations and workplace experience into one approach focused on the people who use a building, not only on the building itself.
What is CBRE’s BOE business?
CBRE moved to create a new BOE-focused business by acquiring Industrious, a flexible workplace provider, as reported in January 2025. It built on CBRE’s 2020 investment in Industrious and combines flexible workspace with CBRE’s facilities and property management services.
How is BOE different from facilities management?
Facilities management focuses on keeping a building and its systems running. BOE includes that work but adds property management and workplace experience, so operational decisions are made with tenant and employee experience in mind.
Is BOE worth the upfront cost?
BOE can be expensive to start, because it may require IoT sensors, upgraded HVAC systems and new software. The long-term benefits, such as lower energy bills, streamlined operations and happier tenants, can make it a worthwhile investment.
