Transforming the Modern Workspace: The Power of High-Quality Amenities in Office Spaces

In the pre-pandemic era, office-goers had already developed a taste for top-tier office spaces. Class-A buildings, accounting for roughly 50% of total inventory, saw 90% of office absorption in 2018 and 2019. This trend only gained momentum post-2020. The highest-quality, newest office spaces saw an impressive uptake of over 100 million square feet, coupled with a doubled rent premium when compared to pre-pandemic figures.

Autonomy over work location and schedule often correlates with higher employee engagement. Employers aiming for a hybrid or flexible work model are focusing on curating engaging, value-adding office environments to incentivize in-person attendance. These enhanced environments comprise top-tier spaces, a vibrant neighborhood, an array of amenities, and top-notch services. In fact, buildings renovated or delivered post-2020 showcase a broader range of amenities, averaging 17 against the usual 14.

Employees value office spaces as venues for social interaction, collaboration, access to resources, and connection with the company. Therefore, top-tier companies gravitate towards buildings boasting a variety of amenities.

Studies revealed that, on average, a building houses 14 amenities, with the most popular ones being controlled access, on-site retail and food, fiber availability, nearby public transit, and on-site parking.

Surprisingly, the appetite for amenities remains consistent across the central business district (CBD) and suburban locations. The distinction appears when commuting comes into play. While all surveyed suburban locations offer on-site parking, only 71% of urban buildings do so. However, CBD buildings score highly on Walk Scores, with an average of 93. This provides the urban edge over suburban buildings, where the average Walk Score is a modest 46.

However, simply ramping up amenities doesn't automatically solve office employee engagement and attendance issues. The recent shift towards quality encapsulates a range of experiences that provide convenience, engagement, security, commuting ease, and technological access. When offered a choice between a building teeming with high-quality amenities and a less endowed one, the decision is straightforward.

This report aims to aid tenants with key real estate decisions that affect their business and employee well-being. However, one-size-fits-all solutions don't exist. Decisions should be tailored based on individual tenant needs, corporate culture, leadership objectives, and employee feedback.