Staying Competitive – Landlord Trends

Staying Competitive – Landlord Trends

Architecture August 14, 2018

With plenty of competition for long-term tenants willing to pay a premium for office spaces, landlords of commercial buildings are keying in on ways to amp up their properties, stay relevant and attract those elusive, prime tenants.

One way building-owners are staying competitive is by proactively anticipating tenants’ must-haves and topping them off with coveted bonus amenities. Stand-out, pre-built features, like fitness centers, bike rooms, playrooms, showers, juice bars, coffee shops and gaming areas, help landlords attract those premium occupants, who, in turn, use the enhancements to entice high-level staff and executives. Some landlords are going as far as luring potential renters with packaged deals while others are including bundled furniture options with their leased spaces.

See below for RFR’s Pre-build at 375 Park Avenue came equipped with a full furniture package:

Some building owners are designing high-end lobbies and common areas for ‘wow’ factors that distinguish the building from others while upping the image of offices located inside. Take our work on the lobby and common areas of 875 Third Avenue, where a focus on art featured two sculptural escalators, dramatic lighting, geometric patterns on walls and ceilings and an assortment of funky furniture. The result was striking and memorable spaces that did more than intrigue visitors with an artistic eye. The areas’ immediate and marked impact also provided the companies located inside with a vivid and sensory means to heighten their brand, including instilling a feeling of pride for those that work there. The dynamic spaces also were meant to grab the attention of those visiting the building’s firms, possibly raising their perceptions of the companies located inside.

As well, landlords that offer spaces with shared amenities may have a step-up on others because communal spaces can help reduce an office’s overall footprint, lowering rental costs. An on-site café with dining, for instance, lessens the need for an expansive office pantry. A shared outdoor terrace provides room for informal meetings.

When it comes to amenities, getting ahead of the competition isn’t just about having more of them. Landlords know it’s also about showcasing select ones, like an indoor swimming pool or roof-top patio and garden area. Impressive features infuse buildings with an air of exclusivity and rank, amplifying their appeal to potential commercial tenants and the stellar employees that align with firms that invest in exclusive conveniences.

While the inclusion of fancy features has some businesses scrambling years in advance of a move to nail down a desired space, others have taken a different tact on landlords’ heightened efforts to attract them. Instead of jumping on fine-tuned and available properties, some savvy owners are maximizing on the incentives by inquiring about monetary allotments for additional improvements as part of the lease agreement.

In the end, increasing incentives for rentable commercial spaces creates winners, all around. Landlords attract profitable tenants, tenants forge advantageous lease deals and the workforce benefits from both. Genius.