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Under international accounting standards, how an asset is used can affect its valuations—as long as that use isn't unique. With Space-as-a-Service growing in popularity, we're risking disaster the longer we take to include it within the definition of 'Highest & Best Use'.

If higher service levels don't increase office building values, then why are full service hotels worth more than their limited service competitors?

Stuck between a market that is demanding flexible leases and an ecosystem that is optimized for traditional, long-term leasing, landlords are facing a potential market squeeze that will cause a large loss in value.

Flexible leasing entails a different method of calculating property values—and the investors who figure this out stand to profit while everyone else tries to catch up.

With the paradigm shift in office demand and valuation methodologies lagging behind this new reality, investors are facing a tough balancing act–how much should they focus on valuation versus maintaining Net Operating Income levels? While landlords understandably don't want to hurt values and financeability in the short-run, Net Operating Income is what pays the bills and it has to be prioritized.