We Need a Better Definition of Office Engagement

• Engagement standard: With so many ways to engage with a workplace, the corporate world needs to reconsider how it defines office engagement.

• Active investors: Rexford, an industrial REIT, has become the latest investment of activist investor Elliott Investment Management.

• Suburban urbanism: Across the U.S., suburbs are transforming into self-contained urban hubs with housing, jobs, retail, and amenities.

• Today’s webinar: Data-driven metrics and insights for profitable office-to-residential conversions. Sign up

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Space Planning & Workplace

We Need a Better Definition of Office Engagement

Companies everywhere are rethinking what the office means. Some are downsizing square footage, others are retooling existing spaces with amenities, programs, and tech designed to boost impact. At the same time, executives are questioning how far remote work can go before culture and productivity begin to erode. Traditional utilization metrics—tracking how many people show up—no longer capture the full picture. The new question isn’t just how much the office is used, but what employees actually get from it.

That has pushed leaders toward engagement as the next frontier. Engagement looks beyond attendance to how people connect with their workplace, whether through meeting rooms, gyms, or even digital platforms like Slack. The challenge is that engagement has no universal definition, which leaves companies struggling to measure and improve it. Some employees come to the office for focus, others for collaboration, and some just for the perks. Surveys can help, but emerging PropTech tools promise a sharper, data-driven view of what truly drives connection.

The stakes are growing as the workforce shifts generationally. Millennials and Gen Z now make up more than half of U.S. workers, bringing new expectations for digital-first engagement and workplace flexibility. Older cohorts still lean on in-person rituals, creating a tension that makes one-size-fits-all strategies ineffective. The office is no longer just a physical building, it is a hybrid ecosystem of digital and physical spaces. Companies that learn to balance cost, culture, and employee choice will be better positioned to attract and retain talent in an era where work happens everywhere.

Overheard

Activist Investor Could Trigger Industrial REIT Shake-Up

Activist investor Elliott Investment Management has reportedly built a sizeable position in Rexford Industrial Realty, making it one of the REIT’s top five shareholders. Rexford owns industrial infill assets across Southern California and has seen its share price underperform the broader REIT index. The news sent Rexford’s stock up more than 5 percent early in trading, underscoring investor optimism that Elliott might push for value-creating moves.

This is not the first time Elliott has leveraged a REIT holding to catalyze change. The firm has a history of influencing governance at other real estate companies, aiming to unlock shareholder value through restructuring, buybacks, or strategic sales. Rexford is well positioned for that playbook—it reported strong liquidity, limited leverage, and recent earnings that beat estimates, making it a candidate for governance-driven returns.

For Rexford, Elliott’s involvement could mean pressure to accelerate asset sales, boost buybacks, or rethink development pacing in Southern California’s tight industrial market. But the ripple effects could spread well beyond one company. Other REITs, particularly those trading at discounts to net asset value, may find themselves under greater scrutiny from activists and investors who see opportunity in operational shifts or portfolio reshaping. If Elliott is successful in pushing Rexford to unlock more value, it could embolden a wave of activist attention across the REIT sector.

Mixed-Use “Mini-Cities” Are Reshaping Growth in the Mountain West

Vestar, a Phoenix-based retail developer, has unveiled plans for Legacy Park, a massive mixed-use project in southeast Mesa. Spanning 200 acres near Mesa Gateway Airport, Arizona Athletic Grounds, and ASU’s Polytechnic campus, the multibillion-dollar development will include thousands of apartments, a resort hotel, high-end dining and retail, office space, and a large urban park anchored by a man-made lake. Vestar is partnering with Pacific Proving LLC, the land’s longtime owner, to create what they call an “urban oasis” for the fast-growing Southeast Valley.

The project’s first phase, scheduled to break ground in 2027, will focus on retail and hospitality, several hundred multifamily units, office space, and the park. Altogether, Legacy Park is expected to deliver hundreds of thousands of square feet of retail, millions of square feet of office, and a curated mix of amenities comparable to Scottsdale Quarter, a luxury mixed-use destination. Vestar has already begun conversations with anchor tenants and a hotel brand but has not yet announced specifics.

Before construction begins, Vestar will work with the city of Mesa on annexation, rezoning, and entitlements, since the land currently sits in unincorporated Maricopa County. Company leaders say they have strong support from local officials and the surrounding community, and they see the project as a transformative development that will elevate both the quality of life and the economic profile of the East Valley.

Legacy Park also fits into a broader national trend of large-scale suburban mixed-use projects. Across the U.S., developers are reimagining the suburbs not just as bedroom communities, but as self-contained districts with housing, offices, retail, and entertainment all in one place. In fast-growing regions like the Mountain West, where demand for both housing and jobs continues to outpace infrastructure, projects of this scale signal a shift in how cities are planning for the future — turning once-vacant land into new urban centers designed to compete for residents, employers, and investment.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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