Experience is the new commercial capital: Why ROX is the missing metric in real estate value
Abstract
While return on investment (ROI) has been the predominant formula for quantifying the value of commercial real estate, this measure fails to capture the full picture in today’s complex landscape. Much of a building’s worth lies in the experience it offers end users; one shaped not only by location and square footage, but also by the degree to which it builds community and affects occupants and visitors emotionally. This paper proposes return on experience (ROX), a concept borrowed from the consumer-products world, as a complementary evaluation framework that provides a more holistic appraisal when integrated with traditional ROI. By assessing the existence of — and investing in — experiential factors like psychological comfort and layering them onto metrics, such as floor-plate efficiency, stakeholders can achieve a multiplier effect that can significantly amplify property value. We outline a framework of seven experience attributes, prioritised according to existing research, and explain how to evaluate them, thus offering a clear road map for strategic investment decisions. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Valerie Jardon, RID, IIDA, NCIDQ, Fitwel Ambassador, CDF CCP is a respected leader within the design industry and has a passion for understanding people in order to create more purposeful spaces. Her passion for pushing workplace innovation for global corporate clients comes to bear in her role as the Managing Director of Strategy Studio at IA Interior Architects. Honed from Valerie’s 20 years of experience, her holistic research extracts emerging needs and propels companies into the future of work through an empathetic yet results-driven lens, fusing her design degree and business savvy from an Executive MBA to unlock the potential of places and people in the workscape.
Dan Cheetham, AIA, NCARB, LEED AP BD+C has over 40 years of architecture experience and is the Founder and Managing Principal of FYOOG, an IA Interior Architects Company, and is known for his unlikely creative process that weaves architectural concepts and artistic influences. His vision for FYOOG is a result of his coveted industry experience, his passion as a musician, and his collaborations with artists and artisans. Dan has led firms, projects and teams across the world on highly visible projects that have taken many forms, including large urban districts and plans, commercial and institutional projects, educational buildings and settings, as well as outdoor spaces, temporary installations, and sculptures. He is an AIA, NCARB, LEED AP BD+C accredited professional with a BA in Architecture and Music Performance.
Carlotta Dove is the Director of Consumer Experience at IA’s Retail Studio, working with brands across sectors and heading up the strategy arm of international projects. She also leads HumanX by IA Retail, IA’s research platform focused on transforming retail design through deep insight into consumer needs and behaviours. With a background in psychology and a master’s in research and neuropsychology, she is passionate about creating human-centric retail strategies that rethink how we work, play and live. Her speaking topics span industries and research themes, from future consumer insights and shopper psychology to demographic trends, retail innovation and commercial mixed-use design.
