Index Investing News
Thursday, May 29, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Mulling Office Amenities That Make Employees Want To Return

by Index Investing News
October 17, 2022
in Property
Reading Time: 3 mins read
A A
0
Home Property
Share on FacebookShare on Twitter


One Santana West, the newest office building added to the Santana Row mixed-use development in San … [+] Jose, features extra stairs, high-end air filtration, and 13-foot clear-height ceilings, among other amenities likely to lure employees

Federal Realty Investment Trust

One of the commercial real estate maxims of the last year holds smart employers are now or soon will be trading in more office space for less but higher-quality office space. With some hybrid work likely to hang around permanently, employers will need less square footage than they did pre-pandemic. What will they do with the money saved? They’ll put it into Class A office space, the better to induce employees back, natch.

It makes sense that with the office space sector bringing up the rear in the post-COVID CRE recovery, it is Class A office space increasingly seen as the sector’s bright spot.

A mid-August CBRE report titled “The Flight to Quality Quantified” reported that as office space gets reimagined and remote work patterns solidify, tenants have quickened their transitions to prime office properties. CBRE’s report notes slack office demand resulting from virtual work has almost exclusively affected non-prime buildings. Post first quarter 2020, non-prime vacancy rates grew much more quickly than those of prime assets. From first quarter 2020 to same time 2021, non-prime vacancies soared 8.2%. Over the same period, prime vacancy rates increased just 5.1%.

This week, with its Q3 U.S. Office Market Report, JLL confirmed the same forces apply now, as employers escalate their pressure on workers to return to offices.

“Flight to quality continues to be the driving force behind most companies’ leasing decisions, which has driven down renewal rates in favor of relocations to higher-end space,” JLL said in a prepared statement. “And despite inflationary pressures having only moderately alleviated, the flight to quality higher-end space is expected to propel a robust high-end segment of the office market.”

Growth space

The flight to quality is being driven by office tenants desiring growth space for their companies and organizations. At the heart of that quest is the appetite for amenities that motivate employees to actively hunger for a return to the office.

Nearness to public transit has essentially evaporated from employers’ wish lists when it comes to their searches for available office space. “Rather, they want to be as close as possible to amenities for the employees and see offices that are more of a ‘clubhouse’ and meeting place for collaboration, versus a place where employees do their head-down types of tasks,” says Newmark Knight Frank broker Tracey Solari.

Adds Jeff Needs, director of real estate advisory for national accounting-consulting firm Moss Adams: “While employees and employers arm wrestle over how many days of a week are required in the office, the office market will continue to favor location, quality and amenities. Companies and their employees want Class A space with amenities and flexibility.

“Flexibility will be supported by shorter-term leases and square footage adjustments. Flexibility will support ready, move-in space. Amenities will favor owners of high-end space featuring state-of-the-art building systems, adjacent outdoor plazas and green space, and responsive and professional property management.”

Natural light

Some argue a case in point is the new One Santa West office building at Santana Row, a residential and commercial district in Silicon Valley’s West San Jose.

Among offerings served up to knowledge companies are a state-of-the-art HVAC system and air filtration, 13-foot clear ceiling heights enabling natural light to flood interiors, sprawling outdoor terraces and a site across the street from Santana Row’s nearly four dozen shops and cafes.

“The flight to quality in mixed-use walkable development outside the urban core is evident for Federal Realty projects such as NetApp’s decision to downsize and move its global headquarters to Santana Row,” says Federal Realty executive vice president Jan Sweetnam. “Across the street, our One Santa West building . . . is also designed for the knowledge companies taking less space with more amenities.”



Source link

Tags: AmenitiesemployeesmullingOfficeReturn
ShareTweetShareShare
Previous Post

Charles Schwab (SCHW) Q3 earnings top expectations; revenues up 20%

Next Post

Putin’s Musical Chairs With Russian Commanders: Surovikin Wins

Related Posts

Simply Listed | 7955 SE Trenton Avenue

Simply Listed | 7955 SE Trenton Avenue

by Index Investing News
May 29, 2025
0

LOVELY IN LEXINGTON WOOD3 Beds | 2 Baths This fantastically up to date pool dwelling is actually unmatched. Completely positioned...

After 50 Years within the Identical Rental, She Grabbed Her Probability to Purchase a Place

After 50 Years within the Identical Rental, She Grabbed Her Probability to Purchase a Place

by Index Investing News
May 29, 2025
0

Sara Sugihara is at all times on the transfer. In her 71 years, she has travelled the world, discovered seven...

Simply Listed | 50 SE Twelfth Road #2640

Simply Listed | 50 SE Twelfth Road #2640

by Index Investing News
May 29, 2025
0

BEAUTIFUL IN BOCA RATON2 Beds | 2 Baths This superbly up to date unit is ideal for FAU college students...

GBI Particular Report: Leveraging Frameworks, Navigating Dangers

GBI Particular Report: Leveraging Frameworks, Navigating Dangers

by Index Investing News
May 28, 2025
0

Throughout Inexperienced Buildings Initiative’s Higher Buildings Seminar, a panel examined the design and development of a knowledge heart in Reno,...

Simply Listed | 15048 Eighty fifth Highway N

Simply Listed | 15048 Eighty fifth Highway N

by Index Investing News
May 28, 2025
0

AMAZING IN THE ACREAGE4 Beds | 2 Baths This charming, Farmhouse impressed residence sits on 1.37 personal acres and is...

Next Post
Putin’s Musical Chairs With Russian Commanders: Surovikin Wins

Putin’s Musical Chairs With Russian Commanders: Surovikin Wins

A Philadelphia Eagles-Dallas Cowboys rematch on Christmas Eve, yes please

A Philadelphia Eagles-Dallas Cowboys rematch on Christmas Eve, yes please

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Closing Bell: Nifty ends above 16,000, Sensex jumps virtually 300 factors as market extends rally to fifth day; IndusInd Financial institution outperform

Closing Bell: Nifty ends above 16,000, Sensex jumps virtually 300 factors as market extends rally to fifth day; IndusInd Financial institution outperform

July 21, 2022
Henderson on the John Batchelor Show

Henderson on the John Batchelor Show

January 17, 2023
Aircraft Mentioned to Carry Sri Lanka’s President Most-Tracked in World

Aircraft Mentioned to Carry Sri Lanka’s President Most-Tracked in World

July 14, 2022
Germany indicators .5B deal to produce Ukraine with IRIS-T methods

Germany indicators $2.5B deal to produce Ukraine with IRIS-T methods

May 29, 2025
Ours is the fastest growing major economy: How come?

Ours is the fastest growing major economy: How come?

November 22, 2022
The Global Economy Of 2023 Is Going To Be A Wild Ride

The Global Economy Of 2023 Is Going To Be A Wild Ride

January 14, 2023
0,000 Homes in Rome – The New York Times

$900,000 Homes in Rome – The New York Times

March 29, 2024
JPMorgan Chase sees 8% increase in expenses in ’24 on expansion, inflation, tech (JPM)

JPMorgan Chase sees 8% increase in expenses in ’24 on expansion, inflation, tech (JPM)

January 15, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In