Amenitization of your office portfolio can help you stand out from the competition, attract the right tenant companies and improve the office tenant experience.
Amenities within office and mixed-use properties are a major factor in attracting and retaining commercial and residential tenants and increasing the value of your assets.
Amenities can range from practical features like on-site gyms and cafeteria services to more luxurious offerings like rooftop terraces and game rooms.
But why are amenities important in today's office real estate environment, and how can they help you increase the value and profitability of your portfolio? Read on to find out…
The pandemic changed a lot of things. But one of its most enduring legacies is its impact on how we interact with public spaces, especially offices.
Social distancing and lockdowns catalysed a shift towards an even more digital world.
In that foggy time before 2020, the idea of working, shopping and socialising exclusively from the comfort of your own home was still a fringe convenience.
But many of the habits and attitudes formed during that time have integrated into our everyday behaviour.
This is particularly true for our attitudes towards work. Specifically, where and how we perform our job roles. The office has become less central to our work lives.
But what does that mean for your office real estate portfolio?
Our relationship with the office changed
A paradigm shift has taken place in how we use and interact with the workplace.
Offices emptied out overnight, and companies all around the world were forced to shift to a purely remote model.
As the peak of the pandemic subsided, many companies kept it this way, while others returned to traditional work-in-house models.
Most went with something in between—a hybrid model where employees found some combination of at home and in-office work more often to their needs.
This posed a problem for asset managers of office assets.
How can one keep these assets profitable in times of low occupancy and a favourable shift toward remote working?
One way to draw employees back to offices and retain tenant companies is through amentization.
Office amenities provide convenience for employees. On-site gyms and fitness classes allow employees to easily fit exercise into their busy schedules, while on-site childcare and other family-friendly amenities can make it easier for parents to balance work and home life.
High-quality office amenities built into the office property itself are a deciding factor for companies looking to occupy your office real estate.
The logic is obvious: amenities make an office environment an attractive place to work, and that brings in employees who may otherwise work from home.
Amenities like well-designed and well-equipped break rooms or game rooms can help companies encourage socialisation and collaboration among employees, leading to a more positive and productive work environment.
The promise of a good office tenant experience helps companies stand out in the competitive job market and attract top candidates.
As well as having the space for attractive amenities, you need technology that enables a cohesive amenity package.
A good tenant experience app allows your tenants and their employers to book and pay for amenities.
You can also offer discounts to tenants for onsite amenities like shops, cafes and bars, helping those businesses attract local customers.
Most often, what deters asset managers from integrating amenities into their office and mixed-use properties is the extra maintenance costs involved.
But office amenities can go a long way in increasing the value of the office real estate itself. Companies are often willing to pay a premium for properties that offer a wide range of amenities, as these can make the workplace more attractive to potential employees.
Moreover, residents within mixed-use properties will also be drawn in by the promise of amenities on their doorstep without the need to travel far.
Amenities can generate a hike in value that justifies the upfront costs. So much so that many portfolio managers may be willing to make a large upfront investment to enjoy the more long-term gains in tenant retention and lifetime value.
The best way to make the most of amentization is by listening to what your tenants want. Collect feedback from your existing tenant companies on what amenities they see the most value in.
Such feedback is essential because it helps you optimise your services better to meet the needs and desires of your customers.
Now you know how a cohesive amenity package can attract tenant companies and increase your bottom line.
Curious how a tenant experience app like Chainels can help? Request a demo today!
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