The product architect as a new key role? Learn from other innovation industries

Above all, it is complex!

Urban and real estate development is undergoing profound change. This is influenced by various factors, which reinforce each other and significantly change the framework conditions for project development and site design.

A key driver of these changes is technological transformation. Digital technologies not only influence the way buildings are planned, built and used, but also how people move through cities and communicate with each other. Automation, smart infrastructures and data-based decisions create new opportunities, but at the same time require complex coordination between different actors and systems.

At the same time, sustainability requirements are increasing the pressure to act. Climate goals and regulations for environmental and resource protection require a fundamentally different way of thinking when developing districts and real estate. It is no longer enough to look at individual construction projects in isolation; rather, all planning and development processes must be designed in the context of circular economy, emission reduction and long-term resource conservation.

Another important factor is the change in the needs and expectations of spaces. Types of use such as office and retail, which were considered stable for a long time, are now subject to profound changes. Flexibility, hybrid concepts and a stronger focus on individual life and work models are coming to the fore. At the same time, locations must be more than just functional places; they should offer experiences, strengthen communities and promote quality of life.

A particular pressure factor is added by the development of construction costs. Rising material prices and a shortage of skilled workers mean that classic cost-cutting strategies are quickly reaching their limits. It is becoming increasingly clear that these challenges cannot be solved through cost efficiency in construction alone. Instead, holistic approaches are needed that look at the profitability of the entire real estate product, from planning and use to revitalization and financing.

This complexity creates complexity that can barely be overcome with traditional methods and processes. The need for better, interdisciplinary products that address these challenges in their entirety is more urgent than ever. Only through new approaches and innovative ways of thinking will it be possible to create districts and working environments that will continue to be attractive and sustainable in the future
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Crisis through no fault of your own or lack of ability to innovate?

Is the current crisis solely attributable to exogenous factors, or are we also dealing with a lack of responsiveness on the part of the industry? The economic environment is undoubtedly challenging, but the question remains: Have we already explored all possible courses of action to ensure the development of our cities?

A look at other innovative industries, such as the IT industry, shows that they have developed decisive strategies in times of crisis. One example of this is the introduction of modular microservices architectures. Companies have broken up their monolithic systems and replaced them with flexible software components that can be developed and scaled independently of each other. This flexibility allows rapid adaptation to market changes and increases resilience.

Three key strategies can be derived from these developments:

1. Product architecture: Modular systems create adaptability and efficiency.
2. Marketing strategies: Continuous user analyses and market research ensure targeted product development.
3. User experience and community building: Positive user experiences and active networks stabilize the success of projects in the long term.

These principles show us that agile methods, user centricity and a well-thought-out product strategy are the basis for resilient development. We have learned from this and, with the product architect, offer a central role that transfers these strategies to our industry.

Key components for sustainable products

Based on these cross-sector findings, we developed the product architect's approach for real estate and urban development. The aim is to integrate key competencies into standard planning and development processes. Each of these measures contributes to a measurable improvement in quality. Our many years of experience at REALACE were incorporated into the design of the most important key components.

The starting point is a marketing strategy that determines the needs of target groups through targeted market research and user analyses. These findings form the basis for all further steps in the development process. Based on this, programming involves designing flexible usage concepts that go beyond pure space use and integrate the requirements of the ESG compass. This achieves a balance between sustainability and profitability.

A strong identity building strategy ensures that projects achieve a clear identity and recognition. These attributes increase attractiveness for both users and investors. These strategic ideas are implemented through Concept Architecture, which translates these concepts into concrete spatial structures.

After all, successful locations need sustainable business models that offer both users and operators long-term added value. Innovative leasing strategies, financing solutions and operating concepts ensure the stability and profitability of the project.

In addition, placemaking and community building can be important components for attracting and reactivating locations. These aspects create social networks and experiences that contribute to the long-term stability of a neighborhood.

Even the consistent use of individual of these components can result in significant improvements in the development process. The product architect takes on a flexible role: either as an overarching designer of the entire site concept or as an integrated member of a transdisciplinary planning team.

Think in terms of modules and platforms: Don't always start from scratch

Another approach to meeting increasing requirements lies in modular thinking. Innovative industries such as the automotive industry have shown how significant economies of scale and quality improvements can be achieved through the systematic use of platforms and modules. Even though these concepts cannot be transferred one-to-one to the real estate sector, we can learn from them.

In real estate development, this means that successful projects and concepts are used as a knowledge base for new projects. REALACE has achieved initial success with programs such as “Urban Essence,” which aims to create vibrant urban centers, and “New Work City,” which promotes innovative work environments in neighborhoods. “Innovation Hubs & Districts” are also examples of future-oriented districts that create synergies between different uses.

These modular product concepts help to make development processes more efficient and faster. By applying proven elements in new contexts, projects are of higher quality and attractiveness.

Product architecture: creativity meets market knowledge

Sustainable product development in the real estate sector requires a combination of creativity, interdisciplinary thinking and methodical work. The product architect is at the center of this process. It combines creative approaches with comprehensive market knowledge and a clear focus on user needs. In doing so, he works closely with various specialist areas and integrates their expertise into product development.

We invite you to discuss the innovation needs of the real estate sector with us. Let's explore together how we can create better real estate products and livable cities through a methodical approach — whether through the development of new product concepts or the critical review of existing models as part of a “real product check”. The combination of different disciplines, the development of clear strategies and the courage to break new ground form the basis for sustainable and successful change.