Renae Bradshaw, corporate managing director in Savills Studley's Chicago office, tells Forum, "It's all about creating buildings that appeal to a different approach to work than 20 years ago. And, with technology driving major changes in work processes, buildings have to respond by creating areas that can be adapted over time."

Andres Angel, senior development manager for Trammell Crow Co. in the Washington, DC, metro area, tells Forum, "The development community's current approach to updating/renovating offices is to modernize materials and MEP equipment to be more energy efficient to comply with new energy codes, and to provide for technologies that are available in new buildings. By repurposing an older building, the construction can be less extensive than developing a brand-new building, which allows for an earlier move-in date. It is also desirable to generate open space plans that support flexibility for rapid changes in the work environment, to help attract talent to tenants' businesses."

The craving for open space reflects a desire for the office to represent more of a lifestyle than a sterile work environment, Jon Pharris, co-founder and president of redevelopment specialist CapRock Partners in Southern California, tells Forum. "The next generation of workers is more independent, has grown up doing homework at Starbucks and wants to continue to complete their 'work-work' at comparable-type environments. Contrary to what it may seem to C-level executives, these flexible work environments—for the right employee—can be more productive."

Technology is obviously a key factor now with modern tenants. As Bradshaw puts it, "With technology making work increasingly more mobile, people can work anywhere. So, when employees come to the office, they need to be productive with their colleagues." Fleener adds, "Wi-Fi capabilities throughout a project, digital directory boards, smaller info/screen 'TVs' in elevators—something has to be flashing and moving in the lobby to create that technology buzz."

In addition, automatic lighting systems, low-flow water systems, etc., are causes for replacement of many items that would normally be addressed only on an as-needed basis, says Fleener. "Depending on the area, many government groups require it now. Maximizing efficiency is not something that most tenants see, but they do benefit from it with newer, more modern items."

Fleener adds that the live/work/play trend has been growing exponentially in office development. "Having more-functional outdoor common areas (with Wi-Fi, better seating and work areas and even entertainment places), onsite gyms and conference rooms has also been a big accommodation. The traditional 9-to-5 hours are becoming more fluid, and thus having the comfort of being able to work more-flexible hours has been a big request."

Rick Schuham, EVP and director of Savills Studley's Chicago office, tells Forum most of the redevelopment work has been driven by, and caters to, the technology-space user community. "With more Baby Boomers leaving the workforce than there are Millennial workers to replace them, the redevelopment fundamentals include creating communities and collaborative spaces to foster the interaction the next generation of workers want. Almost no one entering the job market craves that corner office with a door." In addition to a lifestyle/work environment and amenities, easy access to public transit is part of the table stakes for successful repositioning and redevelopment, he adds.

Construction firms are jumping on these trends and providing tenants with creative space, which is becoming more the norm. Jim Roherty, president of San Diego-based Pacific Building Group, tells Forum tenants turn to this trend to maximize their square footage. They're also adding collaborative spaces instead of closed conference rooms and private offices.

Roherty adds that employers want to maximize employee comfort, encourage communication and focus on employee retention, "which we're achieving through high-quality HVAC systems and by maximizing natural light with glass walls and modular walls. Outside, we're creating comfortable spaces for barbeques/dining and recreation. Employers are also adding fitness centers, locker areas and bike parking to accommodate an active lifestyle."

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Bradshaw points out that another focus is on well-being and how physical buildings can support it. "Fitness areas, instead of being planned in 'leftover' areas, are getting prominent spaces and with good views. Even taking a building that had dark areas and improving them with good, natural light is being embraced because research supports that access to natural light is essential to overall health and productivity."

Brian Harnetiaux, VP asset management for Orange County, CA-based construction firm McCarthy Cook, tells Forum one of the major trends in office redesign is to create a "destination." He says, "Tenants are looking for an office product that offers a work environment where employees enjoy coming to the office."

Versatility and choice are also key in redone workspaces. "I have seen a rise in versatile spaces where employees can choose to work in their space or in other areas," Darrel Fullbright, commercial office building developers practice area leader and senior associate for architecture and Orange County, CA-based design firm Gensler, tells Forum. "At Enclave Sorrento in San Diego, we created a hub room, originally designed to be a common conference room, which has morphed into a multi-purpose room. This shared space consists of café seating and an indoor/outdoor hang-out space with displays that are fully wired for employee use."

Fullbright adds that building amenities are in high demand. In addition to the hub room, the firm delivered an onsite café and a fitness facility that engage the completely renovated exterior courtyard. The people spaces became more important than the architectural statement, he says.

As more of the older stock is redeveloped, former class-B buildings are now becoming class-A projects through the introduction of all these amenities, and "projects are transforming into mixed use with the introduction of onsite food and beverage venues," Richard Gonor, EVP at JLL in San Diego, tells Forum.

Alexander Paul, managing director of national market research for Newmark Grubb Knight Frank in Washington, DC, tells Forum, "Having a robust set of in-building amenities is almost mandatory to attract tenant interest in today's market." Aside from the amenities mentioned above, another popular amenity is "rooftop decks that go beyond a few metal chairs and tables. If a property does not have a robust set of amenities in the building, it had better be walkable to appealing neighborhood restaurants and retail."

In Southern California in particular, taking advantage of the excellent climate is a huge trend. "Southern California has one of the best climates in the world, and successfully redeveloped product marries the outdoors with indoor space," Scott Wetzel of JLL's Orange County, CA, office tells Forum. "Skylights, stacking glass walls and operable windows benefit stand-alone buildings. Combine that with event lawns, urban farms and city-like plazas, and it elevates an antiquated campus to a truly modern one."

What's not necessary, says Wetzel, is "polished concrete and exposed ceilings. What is necessary is a physical platform for the spontaneous exchange of information and ideas. Human capital is a company's currency; it needs more than just a water cooler to stand around."

He adds that how the space looks depends on the company's culture and the individuals that constitute it. "Vans may have a skate park; Oculus may have game rooms. The point is that the office environment reflects the company, not just an ephemeral design trend."

Fleener agrees. He recommends knowing your customer/tenant mix and what you are trying to achieve. "Some submarkets are dominated by certain industries and tenant sizes. For example, building large outdoor common areas for a small-tenant building (if the average tenant is 2,500 square feet) doesn't always work."

Smaller tenants typically are principal-driven, he adds, "meaning if you have an eight-person company and three of the people in the office are principals, they are not likely to need or have common-area space for their workers to retreat to—they want them in the office (thus, you focus on facelifts and less on live/work). On the flip side, if your market is dominated by software or gaming companies, you focus on live/work, and sometimes the facelift is less important if you can sell the 'retro look.' "

So who are the major tenants occupying modern redeveloped space? It's not just the millennials who crave open floor plans and versatility. Griffin Cogorno, director of client services for Brea, CA-based Unire Real Estate Group, tells Forum that tenants are evolving—especially older, more traditional ones. "This cycle has many traditional, large-square-footage occupiers being very careful about taking new larger spaces. These tenants are doing more with less and watching their bottom-line revenue."

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Roherty says, "We're seeing larger companies either relocate their corporate headquarters or establish a large hub in San Diego. Major tenants include technology firms, Internet security firms, financial services and healthcare-related services. These tenants want San Diego's climate and hope to attract talent from local universities. To accomplish this, they're asking for modern office spaces that are comfortable, communal and amenity-filled, both indoors and out. Developers are bringing in architects, designers and general contractors who can achieve a work/play-type of campus."

Gonor notes that the TAMI segment (technology, advertising, media and information businesses) is a key growth sector where employers are focused on recruiting and retaining top-talent employees. "However, everyone is talking about company culture these days. These can range from tech companies to law firms to financial companies."

He adds that mixed-use development is on the rise, and if a site is remote or removed from walkable amenities, developers are getting creative by providing shuttle or bike-sharing programs. "The preferences have changed for many tenants from being located in vertical high-rise buildings to occupying horizontal floor space with interesting workspaces. Developers are responding by re-imagining older building or by 'hacking' the buildings. Developers have been rehabbing dated office buildings for as long as they have existed, however now they aim to make more dramatic improvements through rethinking the structures. Part of what is driving this movement is the lack of well-located development sites and the cost of tearing down buildings to build new ones."

Bradshaw says technology companies continue to have large space requirements. "Interestingly, there is a 'frenzy' for space that feels like the Internet boom of 2000. The difference is that now as a society, we have a technology platform and a behavioral shift since then that can support these companies. Most organizations are looking for buildings that have smaller cores."

While Pharris says traditional law firms are avoiding open office redesigns, Harnetiaux says these redevelopments are appealing to all tenants. "The 'modern office' is not just for creative firms anymore—all types of industries are looking for buildings that provide a modern office environment that helps them recruit new talent and retain their existing talent."

Wetzel agrees that every office tenant wants these modern, redeveloped properties now. "Sure, tech firms lead the way, but any company that places a value on attracting and retaining talent will be interested in modernized office product. Tenants want a home for their company—not a beige box. It's about putting together all the things that make people feel comfortable and perform at their best … and that is unique unto each company."