In a recent study, JLL found that come 2025 there will be 12% higher demand for commercial buildings with tenant amenities. This should come as no surprise considering that property features are not only a huge draw for tenants but also a major driver behind building reoccupancy.
Because of statistics like this, many commercial real estate (CRE) companies are spending millions on adding amenities to their properties to improve the tenant experience, from new art installations to tenant lounges and wellness centers, cafes, and more.
Here are some valuable insights on tenant amenities and how data is helping CRE teams decide which amenities are best for their properties.
Building amenities: To add or not to add?
Over 250 commercial property professionals were surveyed about the state of CRE building operations in the recent report, “State of Commercial Real Estate Building Operations for 2023.” Respondents were asked whether they had plans to add new amenities to their buildings over the next few years. The majority said either no (34%) or they weren’t sure (27%).
It might behoove the 61% of CRE professionals who don’t have amenities on their radar to start rethinking how they can utilize their buildings – especially as workplaces continue to change.
Remote and hybrid work continue to make headlines, as employees and companies are at odds about a return to the office. For commercial property teams, that means space could be freed up due to shrinking leases or diminished renewal rates.
The report also showed that upgrades to amenities is one of the most common tenant requests. That’s not surprising as tenants demand that their workplaces offer more. As tenants strategize to get their employees back to the office, compelling building amenities have become increasingly important.
Top tenant amenities for 2023
However, 39% of CRE property teams surveyed in the report said they plan to add amenities to their buildings. Those respondents were asked what property features they had plans to add to their buildings. Here is the top commercial building amenities list based off their responses:
- Fitness center
- Tenant lounge
- Outdoor spaces, such as community gardens, green space, and new seating
- Café and Grab & Go food options
- Conference rooms and small huddle rooms
- Zoom/phone/quiet rooms
- Nursing rooms
- EV charging stations
Using data to decide on essential amenities – and measure ROI
It is important to note that when it comes to amenities, one size doesn’t fit all. Each property is unique, as are their amenity needs. So how do you determine where your investment will pay off in finding the best tenants?
Data extracted from tenant experience technology is the key. It comes down to accessing real-time data on tenant preferences and behaviors. Data on tenant preferences and behaviors is a hugely valuable tool that, when harnessed correctly, can directly boost NOI for CRE companies.
Having a continuous communication strategy and conducting pulse surveys are other great ways to collect data from your tenants. In fact, this could be one of the biggest opportunities for CRE property teams in 2023. According to the report, 63% of CRE professionals don’t use or aren’t sure if they use tenant survey and polling data to guide business decisions.
That’s missing a huge opportunity to improve tenant satisfaction. By polling and surveying tenants (beyond an annual survey), you can analyze responses to determine which essential amenities and spaces could be worth investing in to boost tenant satisfaction and retention. On the other hand, you can also get valuable insights about those amenities tenants aren’t using to determine whether you’re wasting space and resources on investments that won’t lead to an ROI.
CRE property teams add amenities to buildings to remain relevant
Building amenities can be your competitive differentiator as we make our way through 2023. And for many CRE teams, incorporating amenities can help win back the commute. With property features, CRE landlords won’t have to encourage tenants to return to their buildings, the buildings will speak for themselves.
Every event registration, booked resource, and tenant survey sheds light on what your tenants love — and what they don’t. Use this real-time data to remain proactive about your programs and amenities and drive NOI with the broadest, deepest features for commercial property teams.
To learn more insights on what CRE teams can expect to see in 2023, download the full report, “State of Commercial Real Estate Building Operations for 2023.”