Why Outsourcing The Tenant Experience Is Making A Comeback In CRE

As commercial real estate firms face tighter margins, rising operating costs and evolving tenant expectations, “efficiency” has become the industry’s watchword. One strategy companies are turning to for both efficiency and agility is outsourcing key building functions to specialized partners.

Earlier this year, CBRE and CoreNet Global reported that 36% of CRE departments are expanding their outsourcing strategies.

Tom Larance, president and CEO of The Experience Group, an amenity management and tenant engagement firm, said that this signals a clear shift in how firms manage noncore services. 

From 2000 to 2017, amenity management in CRE was largely handled by specialized firms that brought creativity, flexibility and entrepreneurial energy to the tenant experience. However, around 2017, many large CRE firms began bringing these functions in-house to gain more control and oversight over their brand and experience.

Today, as operating costs and headcounts are on the rise, Larance said these firms are once again looking for specialized partners to deliver highly curated, bespoke experiences that stay ahead of emerging tenant trends.

“Firms have been recognizing that maintaining these services internally is no longer efficient or inspiring, and over time, the programs have lost some of their creative edge and differentiation,” Larance said. “CRE teams are now looking for smarter ways to deliver the tenant experience, with adaptive staffing models, integrated data and programs that respond to hybrid work and shifting occupancy patterns.”

Bisnow spoke with Larance about why outsourcing tenant experience and amenity management is reemerging as a strategic advantage for today’s leading CRE organizations.

Bisnow: What’s driving the renewed focus on cost-cutting and efficiency?

Larance: The market is demanding it. Margins are tighter, operating costs are rising and investors expect leaner operations. Some firms have restructured to improve profitability while expanding service lines.

From 2017 until the pandemic, many firms saw how valuable amenity management was for attracting and retaining tenants, so they brought it in-house for greater control. But those internal models often led to more headcount, higher overhead and diminished creativity.

The challenge now isn’t whether to maintain tenant experience. It’s how to balance it with efficiency in a way that strengthens leasing and long-term asset value. CRE firms want to maintain connection and community while controlling costs. That’s exactly where outsourcing fits. 

Bisnow: How does outsourcing help firms save money without losing quality or the personal touch?

Larance: The key is specialization. Firms like The Experience Group are built entirely around amenity management and tenant engagement. We can scale programming, staffing and insights across multiple properties, which reduces costs, improves quality and maintains brand alignment.

But outsourcing is about more than efficiency. It’s about revitalizing creativity. Some providers rely on a template-based approach, delivering the same content or classes across every building. It might look efficient on paper, but it rarely resonates with tenants.

At The Experience Group, we take the opposite approach. We create custom programs for every property. Each fitness class, event and activation is tailored to the building’s tenants and culture. That’s what drives engagement and keeps people coming back.

Bisnow: You’ve been on both sides, running an outsourced firm and leading JLL’s in-house platform. How has that shaped your perspective?

Larance: I founded Corporate Concierge Services in 2001 and grew it into one of the largest amenity management firms in the country. JLL acquired it in 2019, and I stayed on to create and lead XM by JLL, the company’s in-house tenant experience platform.

That experience gave me a deep understanding of how these programs operate inside a major CRE firm — both their power and their limitations.

Now, at The Experience Group, we help firms outsource strategically while maintaining high-quality tenant experiences with optimized resources. Having seen both models, I can say that outsourcing today offers the ideal balance of flexibility, scale and creative differentiation.

Bisnow: What’s your main message to CRE leaders navigating this moment?

Larance: Tenant experience doesn’t have to be a fixed cost. It can be a scalable service that adjusts with market conditions, occupancy and portfolio goals.

Outsourcing is about gaining creativity, capacity and insight. The firms that embrace that mindset now will define the next phase of CRE.

This article was produced in collaboration between Studio B and The Experience Group. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.