Office Landlords Add Recreational Facilities To Attract Tenants

USA – Real estate consultancy Jones Lang LaSalle (JLL) shared that commercial property owners across the country are adding different amenities to their office buildings, particularly fitness and recreational facilities, in a bid to attract tenants and keep occupancy levels high, reported the Cleveland Business Journal on Thursday evening (21 October, SGT).

“There’s been a push for fitness and recreation centres within office buildings,” said JLL’s Senior Vice President for agency leasing in Cleveland, JR Fairman, when asked what kind of amenities are the most popular in office buildings.

“When those kinds of investments are made, you tend to see an increase in occupancy. Something else put forward due to the pandemic was more of the lunch-and-learn-type sessions, ways to stay active, and online company-wide competitions,” he explained.

Fairman cited the example of The AECOM Centre, which recently installed a golf simulator and a basketball court for the occupants of the commercial property.

“Amenities have become important, as well as access to and from the building. Other things to consider are accessibility by transportation through biking, driving, or public transit. While it’s always been important, it’s starting to become another driver of all of these deals,” said Fairman, who added that there’s continued to be a flight to quality, with would-be occupants seeking Class A or Class B office space instead of value options.

Aside from that, he revealed that providing flexible workspace is now a crucial factor that helps in recruiting talent amid today’s hybrid work-from-home (WFH) era during a time being called “The Great Resignation” due to the record number of staff who are quitting their jobs.

“What we’re seeing is office culture meets work-from-home culture. From a planning perspective, the flexibility is being brought in to accommodate workers who want to work at home, in the office, or somewhere in between.”

Consequently, larger firms have begun rethinking their plans for office space, noted Fairman.

“What’s been interesting to me is to see a shift. Larger companies have started to implement long-term action plans of how they’re going to approach their office space in the next 7 to 10 years,” he added.