As a landlord in a challenging economy, it’s becoming clear that it isn’t enough to simply match a competitor’s offerings. Instead, you have to go above and beyond to prove you’re worth every extra penny that your tenant is willing to spend. A recent GlobeSt.com Quick Poll posed a simple question: Should today’s landlord focus on location, service or luxury amenities? More than half of the voters chose service--60%, followed by location--38%, and then luxury amenities--3%. Brian Harnetiaux, regional director of leasing for the Michelson, one of Orange County’s premier class A office properties, argues that all three should be a top priority. He spoke with GlobeSt.com about his thoughts:
"For office properties that command premium rates in today’s market, I’d argue that prime location, exceptional service and luxury amenities are all key areas of focus.
While challenges in the economy have led some companies to re-evaluate paying premium rates, many continue to see the benefit of leasing class A office space to bolster their brand and inspire their workforce. As a landlord, we have made it our top priority to ensure that our tenants receive the optimum value and benefit from taking space in a class A high rise. At the Michelson, one of Orange County’s premium office properties, we strive to offer tenants a high-end experience featuring uncompromising service and unique amenities in a central location.
Location: With many businesses examining ways to reduce operating costs, taking space in a centrally-located, high-traffic area affords the opportunity to reduce travel time and increase convenience. A central location also plays a key role in elevating the branding of a company. Tenants in high-visibility buildings benefit from a direct association with the structure and both clients and passersby will draw an instant connection between the company and the building. This helps to make the tenant’s name and location much more memorable.
Service: Value and service are synonymous when managing a trophy office property. Providing a level of service that exceeds tenants’ expectations is the most compelling way to demonstrate that that the premium lease rates equate to money well spent. This requires service that mirrors a luxury hotel or resort and the ability to cater to tenants’ needs in a way that enhances their business and lifestyle. At EMMES, we believe that top-notch service should know no economic cycle.
Luxury Amenities: In addition to serving as a valuable branding tool, luxury amenities have a strong correlation with employee recruitment, retention and morale. Employees draw a sense of pride and ownership when working in a building with premium amenities, which has a positive impact on the quality and productivity of the workforce. The Michelson’s amenities--such as the rooftop sky garden, shoe-shine service and a prime location near top restaurants and entertainment destinations--enable our tenants to gain a competitive advantage in today’s economy.
In the current office market, tenants are highly cautious when considering properties with premium lease rates. At EMMES, we have seized this opportunity to solidify our commitment to delivering an experience that places our clients in position to stand out from the competition and pave the way for long-term success."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
