The Great Competitive Differentiator: Tenant Experience
Improving tenant satisfaction is a top priority for commercial office property teams as the workplace continues to evolve. For the commercial office sector, it might be intuitive to think that many property teams are grappling with tenants requesting shorter or more flexible leases. However, our research shows that’s not necessarily the case. In fact, change to leases was at the bottom of the list of tenant requests.
But as the workplace continues to shift to its new norm of remote and hybrid work, that may not always be the case. That’s why focusing on the tenant experience will be key in 2023 and beyond. And, according to our research, commercial office property teams would do well to start by amping up building operations to focus on tenant comfort – even simple things like temperature – as 70% of respondents say it’s the most common tenant request they receive.
Accelerated by the pandemic, employees also want to work in healthy spaces. Commercial office property teams can lean in here, making sure buildings have good indoor air quality, for one. Tying the two together, commercial office owners might consider adding health and wellness amenities, such as new fitness centers or healthy food options.
Which tenant requests are most common for you?
Tenant comfort issues (ie., temperature too hot/cold, after-hours HVAC)
Upgrades to tenant amenities
Faster responses to work orders/maintenance requests
Enhanced health and safety protocols
Mobile building access
Better property management communication
Assistance reconfiguring tenant office spaces
Shorter or more flexible leases
Other
n=158; percentages rounded; respondents could choose up to 3 answers
What Tenants Want
The research suggests that commercial office property teams need to find a better way to manage HVAC systems. One solution is to implement an intelligent HVAC optimization management system that learns and monitors all HVAC equipment operations 24/7. Such a system can leverage artificial intelligence and data inputs to make real-time micro-adjustments to maximize tenant comfort while reducing energy consumption and costs as well as exceeding indoor air quality standards.
Upgrades to tenant amenities is another common request (30%). That’s not surprising, especially in the commercial office space, 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.
of commercial office property teams say tenant comfort issues are the most common tenant request.
Creating the Best Office Building Experience
Many CRE companies are spending a lot on adding amenities to their properties to get people excited about coming back to buildings. Tenants want their employees back in the office, so they need to provide a workplace their people want to come to every day. That means they’re looking to CRE property teams as partners to meet those goals. In other words, the building must offer a better experience to woo workers away from the comforts of home.
We asked commercial office teams whether they had plans to add new amenities to their buildings over the next few years. Over half said either no (27%) or they weren’t sure (27%). However, 46% said they plan to add amenities.
Do you have plans to add new amenities for tenants in your building(s) over the next few years?
Yes
No
Not sure
n = 158
It might behoove the 54% of commercial office teams who don’t have amenities on their radar to start rethinking how they can utilize their buildings – especially as workplaces continue to change and space is freed up due to potential shrinking leases or diminished lease renewal rates.
We asked the 46% who said yes to adding amenities what they plan to add. Below are some of the most common amenities being added to commercial office buildings across the board.
Tenant lounge
Café and Grab & Go food options
Conference rooms and small huddle rooms
Fitness center
Outdoor spaces, such as community gardens, green space, and new seating
EV charging stations
Zoom/phone/quiet rooms
Nursing rooms