What is Furniture-As-A-Service?

Brave Ideas

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What is Furniture-As-A-Service?

A tool in the platform of Space-as-a-Service

Caleb Parker

Aug 08, 2021

Melanie Jones and Todd Simpson, from Berkshire Hathaway company CORT, join Bold Founder, Caleb Parker, to discuss Furniture-as-a-Service (FaaS).

In this episode Melanie shares how the term Furniture-as-a-Service was coined, then her and Todd go on to tag team some real life examples of how landlords are partnering with CORT to deliver value to their mutual office customers. We dive into some high level numbers, cover sustainability, and the circular economy.

And Caleb's favorite part of this episode of course is how CORT is leaning into the future with their new digital solutions that help landlords close deals faster.

Connect with Melanie Jones on LinkedInhttps://www.linkedin.com/in/melaniejonesebb/

Connect with Todd Simpson on LinkedIn

https://www.linkedin.com/in/todd-simpson-329b188/

Connect with Caleb Parker on LinkedInhttps://www.linkedin.com/in/calebparker/

If you have any questions or feedback on this episode, email podcast@workbold.co

Value Bombs

The simple description for Furniture-as-a-Service is that it's a subscription-like approach that provides an access to furniture instead of ownership – Melanie Jones
It comes down to flexibility and choice for the tenant – Todd Simpson
The more we can go into access versus ownership, I think the more likely a company can be successful – Caleb Parker
Imagine everything you needed in an office environment, available in any quantity for almost any length of time, that you can change your or switch out at any time – Todd Simpson
The business environment is more volatile than it's ever been. And so, planning 10-20 years ahead is not going to be a thing in the future – Caleb Parker
Our offering, which is truly circular, has a place in this conversation as we try to make significant steps to help our world – Melanie Jones
We're bringing the commercial real estate industry additional tools, additional solutions that they can use to close more business – Todd Simpson
There are additional costs and burdens that come from owning furniture. I think a lot of companies aren't really considering those costs when they make a purchase – Todd Simpson
A company may say that they're willing to pay a certain premium to have flexibility, so they don't interfere with the business agility, or the high financial cost of getting a real estate decision wrong – Melanie Jones
We have customers where they want to expand and explore new markets, but they use subleases and they use Furniture-as-a-Service to get a foothold in the market to stay flexible – Todd Simpson
If it's something that's flexing and changeable, reduces risk and capital, then Furniture-as-a-Service must be on the table in the conversation – Melanie Jones
The most common scenario I'm seeing going forward, is that operators are going to take a hybrid approach to owning and renting furniture - Todd Simpson
Before COVID, densification was the huge thing. Well, it's not the huge thing now – Melanie Jones

Resources

Upstarts by Brad Stone book recommended by Melanie: https://www.amazon.co.uk/s?k=the+upstarts+brad+stone&adgrpid=119907307880&gclid=EAIaIQobChMI9vu93JuJ8gIVZGHmCh0N4wFXEAAYASAAEgKEsPD_BwE&hvadid=496680604976&hvdev=c&hvlocphy=1006565&hvnetw=g&hvqmt=e&hvrand=4725473440798133617&hvtargid=kwd-300366608349&hydadcr=11465_1841697&tag=googhydr-21&ref=pd_sl_26ua497rj_e
Melanie’s PropModo Article: It Takes A Village To Create A Flexible Office https://www.propmodo.com/it-takes-a-village-to-create-a-flexible-office/
The Real Innovation Academy www.realinnovationacademy.com
4site www.4sitebycort.com
Alex Edds article part 1 https://blog.cort.com/workplace/the-sustainable-innovative-future-of-commercial-real-estate/ Alex Edds article part 2 https://blog.cort.com/workplace/the-sustainable-innovative-future-of-cre-part-2/

About Melanie Jones

Melanie is a passionate leader supporting change in commercial real estate, in how furniture is utilised in buildings & the workplace. Melanie is CRE at CORT, in her role supporting teams in the commercial real estate industry, Melanie focuses on building awareness and sharing strategy around a furniture access rather than an ownership approach to the workplace and in buildings. CORT's Furniture-as-a-Service™ (#FaaS) provides flexible furniture for flexible space. This supports positive cash flow, reduce CAPEX, and leave all options on the table during times of uncertainty. Nationally I collaborate with CRE leaders in offering concepts to support change and provide flexibility for their tenants and building owners.

CORT’s Furniture-as-a-Service™ "subscription-like" approach is about access rather than ownership. Clients utilizing our many, many millions of $ of furniture help the planet because it's sustainable and circular, it supports cash flow, it's on-demand, and fast. We help reduce risk. The model is ideal for swing space projects, spec suites, flexible space, sublease situations, short-term office leases (1-3 years), asset-light operations model, incorporating into sustainability plans and any situation where a customer (landlord/occupier) has unknowns. Melanie considers herself an FaaS activist and a frequent writer and speaker on the subject

About Todd Simpson

Todd Simpson is a Managing Director, Strategic Business Development at CORT and is based in Chantilly, Virginia. CORT focuses primarily on furniture rental to apartment communities, students, the military and office spaces. Their mission is to be an indispensable resource to people who are looking to make a house a home, an office a great place to work, and an event a memorable celebration.

What is Furniture-As-A-Service?

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