0
0
Attractive Amenities to Lure Workers Back to the Office
In an effort to entice workers back to traditional office spaces, companies are increasingly seeking buildings with attractive amenities in vibrant, bustling neighborhoods. These amenities are designed to make the office environment more appealing and engaging for employees, ultimately encouraging them to return to in-person work.
Research Findings on Office Lease Rates
Recent research conducted by real estate services firm Jones Lang LaSalle (JLL) has revealed that more than 80% of U.S. markets have experienced record office lease rates over the past three years. The demand for office spaces with attractive amenities has been a key driving factor behind this trend.
These attractive amenities include design-first office spaces, proximity to major transit stations, locations in mixed-use areas, and high-rise office spaces. According to JLL, offices that are “highly amenitized” and well-located have become increasingly popular among companies seeking to upgrade their office spaces.
The trend of prioritizing attractive amenities in office spaces predates the pandemic but has gained momentum due to the push for a return to in-person work post-2021. Companies recognize that offering appealing and energized office environments can be a way to attract and retain top talent.
Impact of the Pandemic on Office Space Preferences
The COVID-19 pandemic has further highlighted the importance of office spaces that promote employee engagement and well-being. Companies are now focusing on creating activity-based designs that support collaboration, provide private work areas, and offer dedicated dining and entertainment options.
Office moves towards newer buildings constructed since 2015 have been driven by the desire for upgraded amenities and modern features. The net absorption of space in offices built post-2015 has totaled 130 million square feet, indicating a strong demand for new, amenity-rich office spaces.
However, there is a shortage of new office spaces that meet the demand for upgraded amenities. JLL’s research indicates that the development pipeline for such spaces has been limited in recent quarters, leading to a supply-demand imbalance in the market.
Return to Office Trends Post-Pandemic
Since the onset of the pandemic, the return to office (RTO) movement has gained traction, with many companies implementing hybrid work models that require employees to work in-office at least a few days a week. According to JLL, 90% of Fortune 100 employees work for hybrid or fully in-office employers.
Vacancy rates in office buildings have normalized to pre-pandemic levels, with 13.5% of buildings experiencing vacancies in the first quarter of 2024. Vacancies are concentrated in buildings in need of conversion or redevelopment, highlighting the ongoing shift towards modern, amenity-rich office spaces.
Overall, the data suggests that the demand for attractive amenities in office spaces is driving companies to seek out buildings with modern features and engaging environments to lure workers back to the office.
Image/Photo credit: source url
