Scott Rechler

While COVID was an accelerator for much of the industry, landlord RXR’s digital metamorphosis got a head start in 2019 — something CEO Scott Rechler remembers as a “transformative undertaking.” 

“We were seeing it in all these other industries, but not the real estate industry — and we wanted to take the lead,” he said. “So we opened up our digital lab, and over time brought on 25 data scientists, designers, product managers and engineers.” 

At the Lab at RXR, those tech wizzes got to work developing new capabilities, focusing on the combination of physical and digital — what RXR likes to call “phigital” — interactions to enhance customer experience and optimize how the company  was running its buildings and businesses.

It created a data lake with information from customers’ activity and created unique programming based on those insights. That data lake has now evolved to the company also performing resident sentiment analysis via its multifamily app, RXO. 

The crux of a data lake is being able to not just capture data but make it truly actionable, Rechler said. “When you have actionable insights, you can serve your customers better, operate your buildings better and run your business better.”

Over the course of RXR’s digital evolution, it had the support of tech giant Microsoft and consultancy McKinsey & Company in reimagining the tenant experience across its portfolio. At the same time, it launched its own digital ventures investment vehicle,  introducing it to various companies seeking capital and allowing it to make strategic investments in companies whose work overlapped with RXR. 

View first crossed RXR’s path in 2018,  but the two fully engaged during COVID due to a common focus on health, wellness and sustainability. Fast forward to December 2021 and View had acquired RXR’s WorxWell data analytics platform, deployed in 25 million square feet of buildings by the time of the transaction. 

With digital acumen now firmly part of RXR’s resume, it’s woven deep into the fabric of its expanding portfolio, with the top three areas of focus being health and wellness, sustainability and community.  

“We’re trying to lean into technologies that focus on those areas, and my view is that if you don’t have those, you’re not future-proofing your buildings,” Rechler said

As such, RXR is focused on new development using technologies that are more sustainable. At the firm’s new supertall at 175 Park Avenue, the glass in View’s Smart Windows is a live network of sensors, showing, for example, air quality and the number of people at different times in that space. “You’re creating a better experience as well as sustaining energy— plus the glass itself can reduce energy consumption by 20 to 40 percent.” —C.C.