How Commercial Office Buildings Are Attracting Tenants with Amenities

It wasn’t that long ago that the only amenities a commercial office building offered were an elevator and maybe a lobby receptionist. But times have changed and with competition at its highest level in decades, the need to innovate and differentiate amongst other office buildings has become more important than ever.

With occupancy rates rising, the race is on for commercial building owners to attract qualified tenants who are willing to pay a premium for the space. According to Statista, the average vacancy rate for commercial office buildings across the U.S., was 12.6% in 2017. However, it is expected that the vacancy rate will decline to just 6.7% by 3Q 2019.

Location, Location, Location

The prime location of a commercial office building is the most sought-after amenity among prospective tenants. In fact, GM recently relocated its Cadillac brand from Detroit to commercial office space New York City’s trendy SOHO district to be closer to their customer base. The new location allows it to attract millennial employees who enjoy the nearby art galleries, boutiques, cafes and other neighborhood amenities.

Amenities That Commercial Tenants Want

Without amenities, prospective tenants will simply compare the cost per square foot against other competing office space and the lowest one usually wins.  But to attract tenants who are willing to pay a little more to occupy space in your commercial building, you need to offer amenities that prospective tenants want. An on-site restaurant or café is one of the most popular amenities for commercial tenants in both urban and suburban office buildings. This gives employees time to take a break and relax without having to spend most of their lunch hour traveling back and forth to a restaurant. A health club and fitness center is another popular amenity and attracting a recognizable fitness brand that will lease space in your commercial office building is a win-win for building owners, tenants and employees.

Divide and Conquer with Open Space

Entrepreneurs, start-ups and small businesses are growing. Some of these young and vibrant small firms will be tomorrow’s corporate giants. And more often than not, these energetic underlings are looking for cool office digs to hang their hat and grow their business. Many prefer to co-habitat with other small firms like them rather than rent a stuffy private office.  A commercial office building may want to consider converting one or more floors into an open space that can be leased to companies that have few employees. That’s just what the owners of the Old Chicago Main Post Office Building did. They converted this historic structure into an open, collaborative work environment to attract a younger workforce.

Commercial building owners who want to attract premium long-term tenants in competitive markets like New York, Chicago and Miami are offering a variety of amenities that appeal to employees. Even big Fortune 500 companies who traditionally maintained a suburban office campus are leasing space in office buildings in major cities to attract and maintain a talented workforce.