Do Office Amenities Impact Occupancy?

Office amenities have become integral to attracting and retaining tenants. Amenities have become a way for office owners to set themselves apart from the competition, especially because companies are looking for ways to attract and retain employees. Amenities can help to provide a better quality of life and work life balance to companies and their employees.

“Amenities are a huge differentiator among commercial buildings. Quality of life and productivity have really come to the forefront, so anything that makes employees happier, healthier, and more productive is a welcome amenity and counts significantly toward higher occupancy and lease rates,” Tim Lee, principal at Olive Hill Group, tells GlobeSt.com.

Even better than driving occupancy at office properties, a good mix of amenities can also drive rents up. “Office tenants have placed a lot of stock in their people, so recruiting and retaining talent is a high priority for them; appealing amenities draw people into a company and help keep them there, so companies are willing to pay a premium for these amenities, and they’re more likely to renew their leases if they’re happy with a building’s amenities,” says Lee. “The same goes for apartment renters.”

Still, it is important to strike the right mix of amenities, and the trends in what employees want area constantly changing. This year, Lee says the employee experience is the focus. “Work/life balance has grown in importance, so amenities that encourage health and wellness, comfort, and a general sense of well being will become more popular,” says Lee. “Also, services and features that enable community building, collaboration, and engagement will be high on tenants’ priority lists, as will any amenity that utilizes technology in a way that helps tenants further their business success.”

In addition to amenities, office tenants are also showing increased interest in services, particularly health and wellness services. “Some amenities we might see more of in offices going forward include massage therapy and chiropractors, consultation spaces, meditation areas in the office, acupuncture and holistic medicine services, yoga studios and walking/running trails, rock-climbing walls, espresso and cocktail bars, game rooms and virtual-reality gaming spaces, corporate sports tournaments and active spaces, and theater and music stages,” adds Lee.

As offices incorporate more amenities, the spaces will begin to resemble multifamily communities, allowing tenants to create more personalized spaces. “The line between home and office will continue to blur, with demand increasing for more colorful and creative finishes and furnishings, ecologically conscious materials and systems, healthier food options, and most of all, choice in work setting and environment,” says Lee.