amenity packages can make or break your real estate investment so we're covering why the
top commercial real estate investors focus on their amenities the exponential growth of online
ordering has caused a massive shift in the way that we experience retail today retailers that
refuse to adapt to the new age have unfortunately fallen by the wayside commercial real estate
investors and developers are also too aware of how these changes will impact their bottom line
and they're making moves to keep up amenities are one way that a project can stand apart in a
sea of commercial real estate options they catch a tenant's eye bring benefit to their employees and
customers and help curate a memorable experience which is crucial in today's marketplace the work
environment is becoming an experience too just as retail has shifted to accommodate a new consumer
other types of commercial real estate will need to adapt to suit their new tenant bases times have
changed and so has the modern work environment alongside multifamily office and industrial
buildings are increasing their amenity packages in order to curate an experience and a lifestyle
for the businesses that they aim to attract the data is there to show that commercial real estate
investors benefit heavily from these offerings as well according to a survey by naop 91 of building
owners agreed that thoughtful amenity packages increase the velocity of tenant attraction so
they lease up faster and assist with higher tenant retention meaning your tenants stay there longer
after all a company's work environment can become its identity both to the employees and
to the customers which means that landlords who help create that identity should experience less
turnover and vacancy losses and amenities offer many benefits to tenants sure amenities may look
cool but at the end of the day they should also offer tangible benefits for tenants as well if
you're looking to craft your amenity pitch to prospective occupants you'll need to focus on
these benefits and not just the features here's what these amenities can offer to the businesses
number one a varied work environment changing where and how you work can help you break through
those mental blocks whenever you're working on a project having the ability to work in
different environments at varying locations and more can help respark that creativity number two
employee attraction and retention touching back on that culture and lifestyle that modern companies
are looking to give their employees strong amenity packages can help businesses attract and retain
higher quality talent number three idea sharing and collaboration when you're in an environment
where you enjoy working in common areas you'll encounter individuals in other industries with
varying backgrounds and you never know where those conversations could lead to number four a
higher brand image higher quality properties and amenities can bring a better brand image to
businesses located within that property consider all of the tech startups in silicon valley and the
often outlandish amenity packages that they offer so what amenities should you offer well that's a
great question there are many different types of amenities that you could offer as a real estate
investor some have been around for decades while others have more recently caught on in popularity
and these amenities should be influenced by the type of tenants that you're looking to attract
a project located within an urban neighborhood where the community enjoys walking and biking to
work will need very different amenity offerings than your more suburban work environment here
are the most common amenities offered today traditional amenity packages traditional amenities
may seem a bit old school but there's a reason they've been around for so long tenants and their
employees utilize and appreciate them the most common traditional commercial amenities include
child care and care services so not only does this amenity ease the calendar management stress
of the professional parent employers often find increased productivity among their workers since
parents don't have to take days off or leave early to care for their children bike storage
more popular in urban areas bike racks and storage give peace of mind to workers that live nearby and
would prefer to not lug their bicycles up an elevator to store them in their offices lobby
reception receptionists in the lobby can assist with incoming visitors and any questions as well
as provide a layer of security for the tenants fitness facilities want to stand apart from
the rest of the crowd offer a professional-grade fitness facility for tenants that wish to exercise
before and after work and don't forget the locker rooms with showers too covered parking covered
in garage parking has long been seen as quite the amenity in urban developments especially if it has
open access which means everybody visiting may not have to pay to park businesses want to be
sure that their visiting clients can easily find them and park without frustration building signage
signage is a big deal for some companies no matter how large or small they may be
tenants that occupy anchor space which means that they have the largest footprint in the property
will often expect to have the most prominent signage or naming rights to the building now for
the more modern amenity packages modern amenity packages typically offer some type of unique
experience for the tenants that helps add to their company culture here are some of our favorite
modern commercial amenities rock climbing walls a development in chattanooga took the front facade
of their parking garage and converted it into a rock climbing wall accessible to the public not
only does this help hide the parking garage but it draws customers in to the surrounding
retailers indoor and outdoor games apartment complexes have been adding in bocce ball and
volleyball courts for quite some time now and mixed use developments are beginning to catch on
who wouldn't want to have a client meeting over a game of pool or ping pong ride share optimization
designate a few parking spaces or a whole lane towards the entrance of your facility for ride
share pickup and drop off only the more transit friendly your property is the less burden you'll
have in your parking facilities which could then be repurposed for higher and better uses
yoga and meditation rooms work can be stressful and many entrepreneurs and startups work long
hard hours providing a quiet room with mirrors and dimmable lights for a yoga or meditation studio
where your tenants can go relax is becoming one of the most popular new amenities dog parks runs
and washes let's face it millennials love their pets and will bring them to work if they're able
commercial projects that not only allow pets but provide locations for the tenants to exercise play
with and care for their pets will have a cutting edge on their competition common area wi-fi more
and more tenants are appreciative of having their wi-fi included in their common area expenses
including wi-fi helps lower that barrier of entry for a new tenant and gives them one less aspect of
running their business to worry about some tenants of course will still need their own dedicated
lines but common wifi will serve the overwhelming majority of tenants common conference rooms not
every tenant needs enough space for a conference room 24 hours a day seven days a week but they
will need meeting spaces occasionally conference rooms that are shared by multiple tenants that can
be booked online will help tenants decrease their overall footprint and maximize the efficiency of
their space programming is also on the rise so you've designed the perfect site loaded with
amenities now it's time to program your facility programming is all of the events and activities
organized and executed by the landlord or the property management company in order to further
engage your tenant base after all just like in multifamily the more a business and its employees
feel at home where they work the less likely they will be to relocate their operations when
their lease expires and will instead choose to renew with you here are some popular programs
fitness classes you already have an on-site weight room yoga studio rooftop deck and or courtyard so
why not take advantage of that by offering group fitness classes you can choose to operate these
in-house or simply hire a third party to oversee the implementation happy hours business owners
and employees enjoy socializing with their counterparts in other industries especially
since these people will likely have a fair amount in common since they both decided to locate in
your building with the culture that you've built invite a local brewery vineyard or distillery for
a happy hour tasting to add even more local flair art exhibits common areas courtyards
and hallways can be somewhat bland without art to liven them up find a local artist or gallery that
could program your common spaces with seasonal or occasionally rotating sets of pieces food trucks
and communal meals everyone needs to eat and just about everyone enjoys good food and company pick
a day of the week or month that you invite a food truck or local restaurant to cater a
meal for your tenants in the common areas so now that you have an idea for the different
amenities that you should implement on site where should you locate them sure the lobby is the most
common space it's easily accessible it's visible it's highly trafficked but don't feel like you
can't get creative with it rooftop decks are all the rage in nashville at the moment developers are
able to monetize otherwise dead space do you have any underutilized or completely untapped
space within your project think creatively as to how you could amenitize that space and don't
feel like you need to get too crazy with it either if you have a nice little nook just add in a set
of cabinets with a keurig and offer a variety of coffee and tea for your tenants or install a beer
tap featuring a local brewery sometimes the simple touches make the biggest difference other common
locations for amenities will include outdoor space and courtyards hallways and corridors
and don't forget about your basements now amenity packages are great but they do cost money so are
over the top amenity packages worth the expense well of course they are as long as you're able to
quantify the return of the overall amenity package the beautiful part about all these amenities for
a landlord is that the tenants will be paying for these as add-ons through their common area
maintenance fees or on a case-by-case basis so you don't want to go overboard in the expenses
to where tenants can no longer justify the pricing but there is a balance to be made there especially
since strong amenity packages help you attract tenants faster and retain them for longer periods
of time whatever you do you should definitely find your blue ocean find your fertile hunting grounds
how can you differentiate yourself from everything else that's currently on the market if you can
offer some unique amenity that no other site in the city offers you'll set yourself apart from the
pack and create demand for tenants and don't be afraid to think outside the box either fortunately
most amenity implementations may be easily adapted into something else if necessary so you can feel
comfortable breaking the mold so that's it for why the top commercial real estate investors
focus on their amenity packages in order to lease space faster and retain tenants
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