It’s no secret that the commercial real estate market is more competitive than ever. All across the United States, companies are moving to downtown areas, in an attempt to attract and retain the top talent. As a landlord, you are always trying to find new ways to add to your bottom line – and a big part of that is focusing on your tenants’ experience and reducing turnover.
Take, for instance, The Shuman, a building recently redesigned in Naperville, an upscale suburb of Chicago. The Shuman was redesigned to have undeniable curb appeal, and includes a number of amenities designed specifically with tenants in mind. Roger Heerema, principal architect working on the project, notes that “ten years ago, it was enough to have something, anything, a check-the-box amenity like a fitness center. Today, landlords are looking at amenities with much more interest than they did before.”
One of the best ways to improve the tenant experience in your buildings is to focus on technology as one of the amenities that you offer. Today, office buildings and other commercial spaces are taking their design cues from hotels and luxury homes – and with great results. With this in mind, let’s take a closer look at some of the ways savvy landlords are leveraging tech as the new amenity.
Targeting TAMI and FIRE Tenants With Flexibility
One of the biggest trends in commercial real estate that is the result of technology is co-working and flexible working spaces. Today, landlords are relying less on traditional 10 year commercial leases, instead offering more flexible options in leasing for tenants who do not want to commit to such long term deals. This is specifically attractive to startup tenants and those companies made up primarily of employees or contractors who work remotely.
Attracting Millennials With New Uses For Shared Space
There are a number of new models of co-working that are turning amenities into unique shared spaces for lease as part of the agreements with tenants. These shared amenities can include a number of different spaces, including recreational areas, rooftop meeting areas and centers, restaurants, coffee bars, and more. These types of spaces are centrally located with different levels of accessibility for tenants who choose to opt in for these shared amenities as part of their lease agreements.
Creating “Centers” That Are Rich in Amenities
This trend is one that is not unique to any particular industry – rather, all sectors of commercial real estate are choosing to offer their tenants amenity-rich “centers” in their space. Technology is playing a huge role in this shift, helping to turn the commercial campus into more of a lifestyle center, where tenants (as well as their customers, if they choose) can shop, bank, dine out, work and live – all in the same area. Driverless shuttles or free rideshare programs are other ways that you can plus up your tenant experience by utilizing technology.
As organizations continue to battle it out in the great war for attracting talent, they will need to become more aware of the tremendous impact the environment has on both recruitment and retention. As a landlord, choosing the right style can mean real and significant impact to the bottom line.