Revolutionising Rental Living: Lessons from the Changing Face of Retail
Earlier this year, Association for Rental Living CEO, Brendan Geraghty, attended the REVO 2034 Industry Insight Reveal, hosted in partnership with Landsec. Following this insightful and thought-provoking event, Brendan shares his views on revolutionising Rental Living: Lessons from the Changing Face of Retail.
The retail sector is undergoing a profound transformation, driven by shifting consumer preferences, technological advancements and evolving economic dynamics. There is much that the UK’s Rental Living sector can learn from these changes. As the retail sector works to enhance customer experiences and create both immediate and long-term value through rethinking its use of space, there are valuable lessons and opportunities that we can apply to Rental Living accommodation. These shifting trends that are reshaping retail can inform and impact the future of Rental Living in four crucial areas: experiences, community, lifestyle and value.
Experiences
Retail has for many years been a transactional sector, but it is no longer just about selling products; it’s about creating meaningful, immersive experiences. This shift from transactions to experiences has seen shopping centres take on a resort-style focus. They are evolving from functional places to destinations where customers linger for extended periods, enjoying events, curated environments and social interactions. The latter is particularly notable as artificial intelligence (AI) and digital tools become more prevalent. The counterbalance to this is that demand for genuine human connection and real-life experiences is growing. Retailers are responding by getting more hands-on, hosting events and fostering people-to-people engagement.
There are several implications here for the Rental Living sector to consider. Retail’s focus on curated events and environments is one that the Rental Living sector has already touched on but has enormous room for growth. Developments can focus on creating vibrant, engaging events programmes, with thoughtfully designed spaces for social interaction, wellness and leisure. Amenities, events and community initiatives can all be created with this focus in mind, while aligning experiences with residents’ personal values and lifestyle aspirations to promote greater engagement and satisfaction. This people-centric, experiential approach should prioritise human interaction, offering regular events and communal spaces that create ongoing opportunities for residents to connect.
That’s not to say that there is no role for AI and digital tools. Indeed, just as retailers are using AI to train their staff, Rental Living operators can leverage it to train teams on providing exceptional service and creating memorable customer experiences.
Community
People will always seek fun, social connection and meaningful experiences. This is as true in residential spaces as it is in retail, and just as the retail sector has embraced with community ethos, Rental Living needs to do the same.
Rental Living is, by nature, more community focused than many other housing tenures. However, there is much more that the sector can do to embrace and expand on this. Rental Living operators should plan for year-round engagement, offering seasonal events, activities and enhancements that keep communities vibrant and appealing throughout the seasons. At the same time, there is much to be gained from celebrating local culture. By integrating local traditions meaningfully, engaging with local businesses and building cultural engagement into Rental Living developments, operators can create a unique sense of place and identity that fosters strong community spirit.
Lifestyle
Retail brands are moving away from product-specific messaging and focusing on aligning with consumers’ lifestyles. Brands aren’t just about products but about feelings and experiences that align with what’s important to their customers. With this approach, retailers’ physical spaces (stores or buildings) become the stage, while the brand is defined by the experience it delivers. As part of this, retailers are embracing greater flexibility on the leasing side of their operations. They are using shorter leases and pop-up concepts to create dynamic and engaging environments, including welcoming smaller businesses and startups to physical spaces to create unique and oft-changing experiences.
Looking at this experience-led branding through a Rental Living lens, the building serves as the backdrop to the lifestyle it enables. That lifestyle is where the real brand lies, blending community engagement, sustainability initiatives, wellness-focused amenities and other elements that residents value. This approach positions good experiences and wellbeing at the centre of the Rental Living brand proposition, not as secondary benefits.
A dynamic approach to ground floor usage is an excellent way to support this. Rental Living developments can welcome rotating businesses, pop-ups and community events to their ground floor spaces to create vibrant and dynamic environments. Doing so not only enhances the resident experience but also attracts foot traffic and fosters community engagement and connection. Partnering with small businesses and startups is a crucial part of this, creating unique, localised experiences that distinguish Rental Living developments from their competitors.
Value
Delivering and measuring value is another area where the retail sector has shifted its thinking of late. Curatorship is playing a key role in this value delivery, with retailers thoughtfully managing spaces to maximise their utility, appeal and profitability. Rental Living operators can mirror this by embracing flexibility in how spaces are used, adapting to residents’ changing needs and preferences while adding long-term value through the proactive, hands-on curation of the community and its amenities, rather than a set-it-and-forget-it approach.
A logical follow-on from this is redefining valuation metrics. We’re seeing retailers seeking to recognise the intangible but critical value of brand strength, wellbeing and customer experience. Bringing this across to the Rental Living sector means advocating for new valuation frameworks that account for community wellbeing, tenant satisfaction and the quality of experiences. By collecting and showcasing data on resident engagement and satisfaction, operators can then make a stronger case for the financial value of exceptional experiences.
At the heart of all this, we must remember that Rental Living customers, just like retail consumers, are rapidly evolving. The expectations regarding value can shift quickly as trends emerge. Shoppers want experiences tailored to their desires, not what brands think they should want, just as Rental Living residents do. Meeting this need requires the use of surveys, forums, informal conversations and other forms of regular resident engagement to help operators stay ahead of expectations. Such feedback loops, combined with resident-centric development design that prioritises adaptability, will enable operators to respond rapidly to changing preferences.
The future of Rental Living
The evolution of retail offers a wealth of insights for the future of the UK’s Rental Living sector. By focusing on human connection, lifestyle alignment, dynamic spaces and long-term value, BTR can transcend the traditional landlord-tenant relationship and become a partner in creating meaningful, enriching living experiences.
The future of Rental Living isn’t just about buildings – it’s about how we live in buildings and how the building lives in us. By embracing these lessons, the sector can redefine what it means to live, work and thrive in a connected, customer-centric community.
The Association for Rental Living is committed to supporting this evolution, fostering a Rental Living sector that’s as dynamic, innovative, and engaging as the residents it serves.
For more information, please visit www.thearl.org.uk.