The Consumerization of Spaces

How changing consumer expectations are reshaping spatial experience

Today's Thesis Driven is a guest letter from Jake Rynar and Andrew Johnson of No Walls Studio, which helps developers create branded spaces that people love. They are also authors of the Substack newsletter The NWS.

There was a time when we allowed offices, apartment buildings, hospitals, grocery stores, shopping centers and strip malls to be painfully boring. No one expected their leasing office to feel like a Soho boutique or their bank’s waiting room to double as a café-slash-coworking lounge.

And yet, here we are.

We’ve been conditioned by companies like Apple, Amazon and even Erewhon to expect every spatial experience to be seamless, branded, and a backdrop for our social content. The result? The same consumer logic that made alternative milks–once relegated to the crunchiest of health food stores–ubiquitous has now infiltrated real estate.

Welcome to the consumerization of spaces—where every building, service, and interaction is judged by the same standards as your favorite consumer brand.

Today’s letter will set the stage for what we expect in our spaces, how we got here and where we’re going, including:

• A couple light theories that explain consumerization of everything

• Cultural movements driving us to want more out of spatial experiences

• Where consumerization shows up in our places

• How to get ahead the next wave of change

How Consumer Behaviors Creep Into Institutional Spaces

The changes we’re seeing in buildings—from podcast rooms in apartment complexes to coworking-style lounges in medical offices—don’t just happen by accident. They follow a pattern.

It’s the same reason you might see a 75-year-old wearing ON running shoes with jeans. What starts as niche—designed for a specific, early audience—eventually gains enough momentum to show up everywhere.

Sociologist Everett Rogers called this the Diffusion of Innovations. His theory explains how new ideas spread from the early adopters (your friend testing Apple Vision Pro in public) to the late majority (your boss who still prints emails). What begins in a startup's co-living space ends up in a suburban garden-style apartment. What starts as Slack for six people becomes the communication platform for your HOA.

In most cases, ideas that break through share five things in common:

1. They’re clearly better than the alternative.

2. They fit into everyday life.

3. They’re easy to understand.

4. You can try them without much risk.

5. The value is obvious once you use it.

Which explains how so many consumer experiences—built for speed, simplicity, and delight—eventually show up in the most unlikely places: DMV-adjacent leasing offices, beige corporate lobbies, and budget-conscious apartment buildings.

Then there’s Expectation Transfer—not a formal theory, but very real. It’s the moment when someone uses Sweetgreen’s app to customize a salad in 10 seconds and then rolls their eyes at the fact that submitting a maintenance request requires downloading a PDF.

You can’t unfeel good UX. You can’t go back to the flip phone.

And you definitely won’t wait five business days for a package room key when Amazon shows up in 15 minutes.

That’s how the dominoes fall. The best consumer experiences raise the bar—and the pressure—to deliver seamless, branded, service-forward environments. It’s why residential leasing has to feel like e-commerce. Why gyms need Spotify-worthy playlists. And why your dentist probably needs better lighting, better art, and cold foam cold brew.

Because now we expect every space to work like our favorite apps and feel like our favorite consumer brands.

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There are also a number of forces driving the consumerization of spaces. They fall in line with both academic ideas—Diffusion of Innovation and Expectation Transfer—and affect how people evaluate spaces.

Friction Is the Enemy. Long live Ease.

Let’s be real: we’re all addicted to ease. We buy non-essential items that show up on our door step in hours…without even contemplating the miraculousness of it all. It’s no surprise that the consumer ideas that are making the fastest jump–moving quickly to the late majority–into institutional real estate are the ones that give us the little dopamine rush of “ahhh.”

An example: If you can one-click order a couch, you expect your apartment lease to be just as seamless. This means booking tours should feel like buying sushi on Uber eats. The credit check and lease approval process should be as fluid as scanning your face on your iphone.

Premium may have once meant complicated and involved, but it’s now fast and easy. If the leasing process feels like applying for a mortgage, landlords and property management have already lost.

Every brand is a lifestyle brand. The distinction between B2B and B2C branding is dead.

Your hotel, apartment, office, and even factory is now your personal brand. In a world where our lives are constantly online–our personas are never “off”– there’s a rapidly shrinking difference between the emotional way we buy cars–a puzzle piece in our aspirational lifestyle–and the way we buy office leases. Both types of products are visible to the outside world and represent who we want to be.

As we start to see consumer products, technology and marketing shift into traditionally institutional spaces, we’re going to expect stronger brand fundamentals in everything we consume. Great developers are tapping into lifestyle branding the same way great consumer product companies do: by exploring the depth of brand building–from better understanding their audiences to crafting a compelling positioning, to building a brand that creatively stands out on the shelf.

Think of property websites that have movie-trailer worthy aura, names that make you feel, brand language that mirrors your life story, and an overall narrative that shows up in every single aspect of the space (amenity programming, art, furniture, wayfinding, music, scent, uniforms…you name it).

After all, you’re not just consuming a space, you’re subscribing to a way of life.

Hospitality has taken over. Hotelification is here to stay.

The definition of “service” has evolved. It used to mean: don’t make me wait too long. Now, it means: make me feel special.

Real estate developers are hiring hospitality professionals to run residential and office buildings. Concierge desks are becoming lifestyle management centers. You don’t just get a front desk attendant—you get someone who can water your plants, plan your birthday party, and fix your bad personal style. Seriously.

The best-in-class residential buildings operate like boutique hotels. And yes, it’s no surprise some of them actually are run by hotel brands. Just look at the rise of branded residences: Ritz-Carlton, Aman, The Standard, Pendry, and Equinox are all in the game.

How does this all play into consumerization? Hotels–more than the rest of CRE–natively speak “consumer” in most aspects of their user journey. As other asset classes start to mimic the hotel experience, we’ll inevitably see a rapid rise of consumer thinking in those spaces.

Flexibility is mandatory. We gotta have it all.

Commitment is out. Optionality is in.

This is the Airbnb-ification of everything: modular office leases, furnished micro-apartments, pop-up retail spaces, short-term housing platforms like Blueground and Landing. People don’t want to be locked into long leases or fixed functions.

Spaces that can flex—physically, digitally, operationally—are winning. Think ORI, foldaway workspace, and modular amenities. In the same way we demand personal control of our consumer lives, we now expect spatial environments to adapt to us. The best CRE companies in the world are going to do the work to understand their customer’s journeys and respond to their changing needs.

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Once you figure out where to look for consumerization in your spaces, you can’t unsee the change. Great spaces are adapting quickly; bad spaces are dusty relics.

This shift isn’t abstract. You can feel it—in the furniture, signage, and scent of your lobby. You may have noticed that your main + main office buildings feel more like The Hoxton than Lumen from Severance. What aspects of space make this change most real?

Design: Every Surface Is Storytelling

Waiting rooms are furnished like The Proper Hotel. Apartment hallways have exciting art programs. Even parking garages are getting graphic treatments. Every inch of the built environment is being designed for feeling, message, and memorability – to tell a brand story. In fact, we’ve transferred the sensorial demands of social media to our most utilitarian spaces (think: those consumer-y new veterinary clinics popping up in trendy neighborhoods).

Why is this happening? In part, developers are quickly learning that the best bang for their marketing buck is to create sharable spaces; moments that get amplified on social media to a larger audience than their brokers could ever dream of reaching. But it’s also the case that these types of branded spaces are simply more engaging for users. We love good stories; we simply tolerate bland.

Tactically, this means allocating budget early for brand positioning, visual identity, and experience design—not just interiors. It starts with a clear value proposition—say, a sense of peace of mind—and designing every touchpoint to align with that idea. That might look like soft, zen-like materiality; artwork that evokes nature; balanced lighting that soothes the nervous system; Bon Iver-esque ambient playlists; and a subtle mossy scent in the HVAC. When every detail ties back to a clear emotional goal, users notice—even if they can’t articulate why. That’s the power of design with a point of view.

Digital Infrastructure: Everything works

People don’t fumble for their car keys anymore—unless they’re driving something from a past life. Modern cars unlock when you’re nearby. That same expectation has spilled into buildings. Keyless entry isn’t a nice-to-have; it’s the baseline. If a building still requires a key fob—or an actual key—it’s already behind.

But it’s not just about access. The real promise of proptech is integration. People now expect their buildings to be as connected as the rest of their lives. Want to unlock your door, adjust the lights, RSVP to an event, and book a dog walker—all from one app? That’s slowly (and painfully) becoming the norm. Companies like Venn and AppFolio’s Stack Marketplace are helping piece this puzzle together—integrating a variety of disconnected point solutions into one cohesive front-end experience. Their ultimate goal is to alleviate the weight of managing multiple apps and passcodes just to experience a tech-enabled space. It’s not perfect, but it’s progress.

All-in-all, we’re edging into a world where buildings behave more like the rest of our consumer operating systems: personalized, responsive, and maybe even predictive. That being said, we happen to be in an in-between moment when our proptech is woefully behind consumer expectations and making for mostly negative user experiences.

Service: Beyond the Basics

Forget “friendly staff.” We’re now talking white glove move-in, expertly curated events, CRM’s chock full of personal details, and crafted on-brand welcome gifts. In high-end buildings, across asset classes, service is evolving from the basics to skyhigh expectations.

Two things make this change most evident: 1) We’re getting better at using consumer technology to support management fundamentals. For example: the type of SMS messages that you get from Shopify to let you know your new t-shirt is en-route are showing up in maintenance updates and post-move in surveys. 2) Developers are learning that brand storytelling is most powerful in service moments (these are the opportunities to turn your brand promise into something real).

Business Models: From Rent to Membership

Spaces are adopting the logic of Netflix. You don’t just pay rent—you subscribe to access. Think tiered amenity access, credits for booking shared amenities, and perks based on loyalty.

Some properties now offer “amenity-as-a-service” models, where residents can opt in for premium tiers that include private chefs, invite-only events, or off-site perks (spa treatments, coworking credits, even private jet discounts).

It’s not a lease. It’s a lifestyle package.

Culture: The Vibe Economy

We live in the age of vibe. A mix of aesthetics, cultural signaling, and experiential design—all wrapped up in how things feel. And just like people curate their vibe across Instagram, Pinterest, and TikTok, they’re now curating it IRL: in where they live, work, and hang out.

Spaces are increasingly aligned with specific subcultures. There are buildings designed for digital nomads, sneakerheads, and wellness junkies. Developers are thinking less about appealing to everyone and more about resonating deeply with someone. It’s the shift from mass market to niche market—except it’s happening in physical environments, not just on product shelves.

This mindset has opened the door to brand collaborations that would’ve seemed strange a decade ago. Think: apartment buildings launching with their own coffee brand, coworking spaces hosting capsule drops with fashion labels, or rooftop lounges sponsored by streaming services.

Buildings are no longer just backdrops for culture—they’re becoming part of it. And if you're not actively creating culture, chances are you're just renting someone else’s.

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So… What Now? How to Actually Keep Up

If you’re developing or managing space, and this sounds overwhelming: good. It should be. Consumerfication requires a massive shift from thinking about spaces as asset-classes to thinking about spaces as products.

The expectations game is changing, and most real estate teams are still stuck in the “Class A” + “great location” = we’re good, mindset. But to keep up, and even stand out, you need to start employing the best practices of your favorite consumer brands.

Here’s how to flip that equation:

1. Build to Evolve

Design with change in mind. Plan for amenities to rotate. Leave room for pop-ups, future tech, evolving service partnerships, and aesthetic refreshes. The goal is to stay responsive, not locked in.

Example) Soho House common spaces are filled with furniture pieces and adaptable AV that can easily be moved and pivoted for different day parts, events, and showcases. These spaces mold to the moment: providing Zoom meeting rooms one day and a Wu-Tang Clan concert venue the next.

2. Design a Brand, Not Just a Building

What does your space mean to the people who use it? Who are you for? How do you show up emotionally? This isn’t marketing fluff—it’s how you stand out in a sea of sameness.

Example) Aman doesn’t just design beautiful resorts, they engineer tranquility. Everything from the low-slung architecture to the natural materials and near silent soundscapes supports one core idea: total calm.

3. Steal Like a Consumer Brand

Borrow from retail, fashion, media, food. Get inspired by how they onboard, delight, and retain their people. Apply the same principles to spatial experience—unboxing moments, loyalty loops, embedded community.

Example) Glossier redefined what a “store” could be in their Soho flagship: part showroom, part selfie museum, part community hangout. From the TikTok-trending staff uniforms to the ubiquitous selfie mirrors, every aspect of the space was designed for sharability and belonging.

4. Map the Entire User Journey

Go beyond the lease. How do people find you? Move in? Complain? Celebrate? Transition out? Every moment is a brand touchpoint. Use them all.

Example) Bunkhouse makes the pre-check in, stay and post-check out journey completely on-brand through a series of clever SMS messages. They use language like “While we’re sad to see you go, it’s time to say so long and safe travels” rather than the usual “Here’s your receipt, thanks for choosing Marriott.”

5. Test and Iterate

Treat your space like a living product. Gather data. Talk to users. Try things. Kill things. Bring in new partners. Curate seasonal moments. You’re not running a building—you’re running a show.

Example) MM:NT hotel in Berlin is a self-proclaimed “BETA Brand,” experimenting with offering “all of the good stuff with none of the fuss” – pairing down the hotel stay to the most meaningful experiences and using new technologies to limit expensive staff requirements; all of which passes price benefits to guests. They’re in the business of constant improvement in response to consumer and business feedback.

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Consumerization is not a trend. It’s a tectonic shift in how we relate to space.

People no longer just want square footage—they want meaning per square foot. They want the feeling they get when their coffee shop barista remembers their order, when the hotel lobby smells like home, when the playlist just hits.

They also want to live in a world in which their buildings aren’t awkwardly behind the rest of their lives. Stepping into a space that hasn’t caught onto consumerization is like accidentally getting stuck in the regular old TSA line – it isn’t that big of a deal, but it feels disproportionately yucky.

If you’re in the business of space, you’re in the business of identity, emotion, and experience. If you can’t deliver on those things, someone else will.

The buildings that win in the next decade will do more than provide—they’ll perform at the same high standards of the rest of our favorite brands.

—Jake Rynar and Andrew Johnson