Amenities-rich offices become retention and recruitment tools
Office space needs are shrinking as companies embrace mobile working and increase efficiency. Yet, even as companies are downsizing footprints, they have bigger expectations when it comes to building décor, infrastructure, and amenities, according to CCIM’s Commercial Investment Real Estate magazine.
Offering employees workspace that has a “wow” factor is more important today as is the ability to accommodate different work styles ranging from baby boomers to generation X to Millennials along with the up-and-coming generation Z waiting in the wings, says Angela Wethington, JD, CCIM, a vice president at Browning, a commercial development, construction, and management firm based in Indianapolis.
“Office space is no longer just the place for people to show up and do work,” she says. “Office space and the office environment is viewed as a retention tool and as a recruiting tool for potential employees.”
Tenants also are demanding space with greater flexibility. “Employers are utilizing flexibility in space planning by creating multiple work environments such as standing, lounging, and co-working to fit the workstyle of today’s diverse workforce,” she says.
Employers want to be able to move and adjust floorplans so that they can recalibrate spaces on an as-needed basis for collaboration within and across departments, as well as accommodate employee needs for additional quiet “me space,” according to Wethington.
Creative Spaces
Companies are not only looking for efficient and flexible space to fit changing workstyles, they also are demanding intriguing, amenity-rich space that helps to attract and retain workers. Such creative space has long existed on the fringe of the office market as a small, often artsy niche.
Traditionally, creative space was found in converted or renovated historic buildings with common features such as open ceilings, exposed beams, and original brick and woodwork. Now even contemporary buildings are embracing that trend by ripping out drop ceilings and rolling up carpets to expose ductwork and polished concrete floors.
Once a favorite of creative types such as ad agencies, architectural firms, and entrepreneurs, this segment of the market now has a much broader appeal. “A wide variety of tenants pursue this type of space but especially those technology and service providers with a younger workforce,” Wethington says. That shift has helped push the Creative Class of space more into the mainstream as a more established category.
The challenge for traditional office buildings is how to attract tenants that are looking for that creative space. Some landlords are spending millions to reposition an entire building. Others are finding they can achieve much the same effect by incorporating creative design elements into individual tenant build-outs without making expensive capital improvements to the entire property.
Read CIRE Magazine article here