Concentric diversification

Often innovation comes from the space just outside your industry. In search of new growth areas, businesses tend to diversify concentrically into products which touch the same customers that buy their primary product, often bringing with them a new perspective and expertise. In recent years IKEA, a furniture retailer, has shown an aptitude for innovation in housing delivery. Perhaps not such a leap from their current business, IKEA has recently announced a new line of robotic furniture, playing to the need to use space more effectively in micro-flats. More ambitiously though through their Space 10 Lab, they have launched a vision for a new communal housing model ‘The Urban Village Project’ in which conveniences and services (including food) are shared, and where residents ramp up ownership over time though a share purchase model. In similar fashion, I think that real estate owners (particularly those with large estates) have incredible potential to move concentrically into other industries, leveraging the fact that they control the funnel of space where people spend their time. The social media platforms have a clear idea about how to monetise virtual footfall. Why do we not see more of this in real estate?