lulafit’s Post

🌟 Exciting News for Commercial Real Estate Professionals and Building Owners! 🌟 A recent report reveals the immense impact of office amenities on rent and occupancy growth. According to the findings, buildings offering top-notch amenities like fitness centers, outdoor spaces, and advanced technology features have seen remarkable increases in both rent and occupancy rates. This underscores the crucial role that amenities play in attracting and retaining tenants, while also enhancing their satisfaction and overall experience. As the competition in the commercial real estate market heats up, prioritizing these amenities could be the key to success for property owners and managers. Are you partnering with the right kiwi-owned organization to deliver the best for your clients? Stay ahead of the curve by incorporating sought-after amenities into your office spaces! 🏢💼 #CommercialRealEstate #OfficeAmenities #PropertyManagement #TenantExperience #RealEstateTrends #KiwiOwned

How Office Features Stack Up in Getting Tenants To Pay More Workspaces With Rooftop Terraces, Courtyards Outperform, JLL Study Shows 1. Office tenants nationwide have reduced their real estate footprint in recent years. 2. Features like roof terraces, sky lounges, outdoor courtyards, and fitness centers are enticing tenants to lease and pay more. 3. JLL's report states properties with these features leased 23.5 million more sq. ft. than vacated since the start of the pandemic. 4. Urban top-tier properties without these features lost over 50 million sq. ft. 5. Outdoor spaces offer the strongest rent premiums, with the largest increases in rental rates. 6. Buildings with a standard gym show only a 0.5% rent premium, while those with enhanced fitness centers generate a premium over five times larger. 7. Upgrading a building with popular features alone may not significantly boost occupancy or rent growth, according to CoStar analysis. 8. Factors like location, proximity to public transport, and building age also influence occupancy rates. 9. The national office vacancy rate is at a record high of nearly 14%, as per CoStar data. 10. New leasing activity has dropped by about 15% compared to 2019 levels. For the full article: https://lnkd.in/gz9ZmZX3

Interesting article with data here from Bisnow associating office building amenities with rent premiums. - Roof or sky terrace garner = 5.2% rent premium - Courtyard with outdoor seating = 3.5% - LEED certified = 2.8% - Just a fitness center = 0.5% - Fitness centers with shower facilities = 2.9% - A restaurant = 0.1% - Food hall =1.4% I wonder what percentage of RSF is used for the respective amenities? Does the cost for the construction of those amenities pay for the rent premium? Especially when a less vacancy is incorporated into the math? Anecdotally, we're working on over 100,000sf of office TI projects right now, if pressed I would say the couple of common denominators throughout the projects would be: 1. Expansion 2. Moving to a better building. The tenants defining "better" by: HVAC Systems/Comfort, Location, Value. https://lnkd.in/gXXzfzyU

Kansas City's office market is well positioned in comparison to other parts of the country. With this said, there will likely be vacancies in older properties that have become obsolete. With a housing shortage it is easy to jump to the assumption that the best conversion opportunities are to multi-family. The reality is that only about 30% of office properties are conducive to this type of conversion. Other conversion opportunities include: 💡 Hotels 💡 Lab Space 💡 First floor retail, restaurants and event space. In this scenario, it is possible for property owners to retain their upper floor office tenants by adding the value of the first floor amenities. It more important than ever to get creative and find ways to add value.

High-quality amenities can significantly impact an office building’s occupancy and get tenants to pay a premium, with roof terraces and other outdoor spaces leading the enhancement pack, according to a new report that attempts to quantify which features are most profitable for building owners. #realestate #cre #commercialrealestate #retail #office #industrial #multifamily #leasing #investment #properties #brokerage https://lnkd.in/eim-DrNi

According to this Cushman & Wakefield study, focusing on office experience is paying off; absorption in buildings with tenant lounges has been positive, with occupancy increasing by 11.3% since 2020. The average asking rents are also 33% higher than the surrounding submarkets. It's clear: creating engaging workspaces matters. If you're interested in exploring how to best amenitize your office building, connect with us today. #lulafit #realestate #commercialrealestate #amenityconsulting #CREinsights

It's evident that amenities play a crucial role in attracting tenants to office buildings in today's competitive market. Landlords who invest in providing a diverse range of amenities can expect to command higher rents and attract more desirable tenants. Here's a breakdown of the amenities and their associated rent premiums: Roof or Sky Terrace - 5.2% Rent Premium: Offering a space where tenants can enjoy outdoor views and fresh air can significantly enhance the appeal of an office building. Courtyard with Outdoor Seating - 3.5% Rent Premium: Providing outdoor seating areas within a courtyard setting can create a pleasant environment for tenants to relax and socialize, enhancing the overall office experience. LEED Certification - 2.8% Rent Premium: Demonstrating a commitment to sustainability and environmental responsibility through LEED certification can attract environmentally-conscious tenants who are willing to pay a premium for eco-friendly buildings. Fitness Center - 0.5% Rent Premium: Including a fitness center within the building gives tenants the convenience of exercising on-site, although the rent premium for this amenity is relatively lower compared to others. Fitness Center with Showers - 2.9% Rent Premium: Adding shower facilities to the fitness center enhances its appeal, particularly for tenants who prefer to exercise before or after work and need the convenience of showering on-site. Restaurant - 0.1% Rent Premium: Having a restaurant within the building may not command a significant rent premium on its own, but it can still contribute to the overall attractiveness of the property by providing dining options for tenants and their clients. Food Hall - 1.4% Rent Premium: Offering a diverse selection of food options within a food hall setting can appeal to tenants looking for convenience and variety in their dining choices. Overall, investing in amenities that enhance the overall office experience can give landlords a competitive edge in the market and justify higher rental rates. Tenants are increasingly prioritizing factors beyond just price when selecting office space, making amenities a key consideration in today's office leasing market. #office, #officespace Thank you, Bisnow, for the facts and figures.

According to this Cushman & Wakefield study, focusing on office experience is paying off; absorption in buildings with tenant lounges has been positive, with occupancy increasing by 11.3% since 2020. The average asking rents are also 33% higher than the surrounding submarkets. It's clear: creating engaging workspaces matters. If you're interested in exploring how to best amenitize your office building, connect with us today. #lulafit #realestate #commercialrealestate #amenityconsulting #CREinsights #cushmanandwakefield

Just like CBDs, suburban office submarkets are seeing a flight to quality, in which corporate tenants are favoring Class A spaces with amenities. #cre #commercialrealestate #office #officemarket #creinvesting #investmentmanagement

Check out examples of properties that have positioned themselves as state-of-the-art Class A buildings, providing amenities and unique tenant experiences that are motivating employees to want to be in the office. #returntooffice #returntowork #officedesign #office #amenities