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News & Insights

Trendy vs. the Basic: What Tenants Really Want in Amenities

  • January 1, 2020

Author —

Stephen Close

Senior Vice President, KBS

News & Insights

Trendy vs. the Basic: What Tenants Really Want in Amenities

  • January 1, 2020

Author —

Stephen Close

Senior Vice President, KBS

An office building’s amenity package can be a market game-changer—separating the ordinary from the extraordinary—the difference between robust occupancies and discounted rents to lure tenants. It’s a competitive factor that cannot be neglected.

According to an HqO report, 72% of tenants are unsatisfied with their current amenities, which is a pretty significant disconnect between landlords and tenants. This can largely be attributed to the lack of understanding of tenant needs and what motivate them to thrive in the workplace. Oftentimes office building landlords do not offer adequate or enough amenities, while others overcompensate with extreme offerings that do not fit the tenant profile.

Throughout the KBS portfolio, we see many correlations among properties and what tenants are looking for. I wouldn’t consider many of these particularly exciting or sexy, but they represent practical and hands-on amenities that promote the tenant experience and create a healthy work/life balance. In general, the most important building amenities KBS tenants want are:

  • Dining
  • Parking and access to transportation
  • Conference and meeting space
  • Retail
  • On-site fitness center
  • Outdoor space/roof deck
  • Tenant lounge
  • Eco-friendly options (such as EV charging stations)

In my opinion, food options are the most critical amenity to have at any building. Whether that’s a full on-site cafeteria or multiple walking options like restaurants or a Whole Foods. Additionally, based on our experiences in the D.C. area, we have had a lot of success and compliments from adding conference centers to our properties, which allow tenants to lease less space, yet still have the ability to host meetings or training seminars.

It should be noted that not all the amenities listed are a good fit for every building. Some buildings will benefit more from innovative and cutting edge amenities that add a certain “cool” factor.  Other buildings will perform better by sticking with the basics. Whatever the amenity equation, it’s important to assess the relevance of each amenity within each market as some of these programs and services can lose their luster once the novelty wears off. What might be important to tenants in Portland, such as riding their bike to work (thus desiring buildings with bike lockers), may not rank as high as accessibility to transportation in markets like San Francisco.

For better or for worse—employees are spending more and more time at their workplace (except telecommuters, of course). The more you can make that workplace feel like home, allow people to get their errands done, escape their day with a workout or a game of ping pong, or have a TV/drink break at a coffee bar, the better they’ll feel and the more productive they are likely to be. And if a building can provide these conveniences without having to get in a car or travel, it’s an even better result.

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Industry Trends

3 Reasons It’s Important to Consider Safely Returning to the Workplace

  • December 31, 2020
Here is a statistic that is hard to believe: Remote working accounted for only 3.4% of the total U.S. workforce population prior to COVID-19, according to Gallup. In fact, many companies, including tech companies such as Yahoo!, famously banned working from home prior to the pandemic because the company craved “increased productivity and a more connected company culture.”
Industry Trends

Designing Office Space for Inclusion and Equality

  • September 17, 2020
As local governments begin lifting stay at home orders and more employees begin returning to the office, research points to heightened employee anxiety stemming from social unrest, COVID-19, and other economic pressures—factors that can negatively impact productivity and overall wellbeing.
Sustainability

How the net zero movement will reinvent commercial office space

  • September 3, 2020
As global warming continues to be a hot topic and area of concern, especially for millennials who will make up 75% of the workforce by 2030
See All

About the Author

Stephen Close

Stephen Close oversees over 2.8 million square feet in the eastern U.S.

Links

What Data Reveals About the Disconnect Between Office Tenants and Commercial Landlords

https://www.hqo.co/what-data-reveals-about-the-disconnect-between-office-tenants-and-commercial-landlords/

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