Capitalizing on Amenities


by Ryan McManigal

Any savvy office building owner knows that a well-amenitized property has the potential to be a leasing homerun, because simply said: tenants want amenities. They want all the bells and whistles that come with a corporate environment.

Prospective tenants look for amenity packages that create a unique work environment that is convenient, motivating and supports overall employee wellbeing. But another selling point of having a healthy amenity mix is that it can save a tenant money.

Most tenants need an office suite equipped with a kitchen or cafeteria, conference space, and flexible work space…square footage that needs to be built out at their own expense. But leasing space in a building furnished with communal conference space, boardrooms, versatile meeting areas and tenant lounges removes the necessity for tenants to house these additions in their own space—or at least on a much smaller scale—cutting back square footage and trimming cost.

KBS anticipated this trend and has been building-out a number of high-demand amenity programs into building common areas—a big draw and a potential cost savings for tenants who in different situations might have to cover the cost of adding their own amenities.   This approach that has proven successful, allowing KBS to bring many of the properties in its national portfolio to full occupancy levels.  KBS looks at each of its assets independently, conducts a thorough analysis of the market and demographics to assess what amenities are within proximity of the property, and determines what onsite additions will provide tenants the ultimate work experience that complements their lifestyles.

Capitalizing on Amenities 12 Transwestern Cantoni 0025 300x200  Capitalizing on Amenities 3811 Turtle Creek Gallery 06 300x200  Capitalizing on Amenities 3811 Turtle Creek Gallery 31 300x200

One of KBS’ signature properties boasting an incredible mix of amenities is 3811 Turtle Creek located in the desirable Uptown market of Dallas, Texas. The tower is situated near retail and restaurants, along with a 3.5-mile walking, biking and jogging trail. In an effort to lift the profile of 3811 Turtle Creek and offer the greatest value, KBS created an outdoor space which used to be a highly unused garden area. This space is now mostly hardscape with a bordered garden and includes tables, benches, a large gas fire pit, horse shoe sand pit, and corn hole. Inside the building is a wine bar with seating, decorated by old Dallas photography to bring homage to the Dallas pride and history, as well as a room that has a pool table and shuffle board table. Continuing on, is an executive boardroom that overlooks a park, and a Wi-Fi lounge. The deli and fitness center have also been upgraded.

Capitalizing on Amenities 3811 Turtle Creek Gallery 27 300x202

3811 Turtle Creek hits the nail on the head and is a prime example of leveraging amenities to give tenants additional flexibility, especially those with smaller lease footprints. Companies are able to host events and meetings in various locations, while employees can work independently in a different setting outside of their office suite. Additionally, the so-called fun amenities are great for teambuilding.

 

Capitalizing on Amenities Ryan Mcmanigal website A1 240x300
Ryan McManigal is a vice president and asset manager for KBS responsible  for over three million square feet of office space in Dallas, Texas.  Ryan also assists in identifying and underwriting new acquisitions for KBS in the south central region of the U.S.