Well-located, class-A buildings with rich amenities are outperforming lower-tier properties, emerging as the prime choice to attract employees back to the office from remote or hybrid work setups. High-quality amenities are pivotal in occupancy rates and tenant willingness to pay a premium. In a fascinating report by JLL, an attempt is made to quantify and put a number on how much rent premium certain amenities command. A few of the reports conclusions: 🎯 Buildings with a roof or sky terrace command a 5.2% rent premium compared to similar Class-A buildings in the same area. 🎯 Courtyards with outdoor seating offer a 3.5% rent premium. 🎯 LEED certification (‘green’ building rating) boosts rent by 2.8%. 🎯 A fitness center alone adds a 0.5% rent premium, while those with shower facilities see a 2.9% boost. 🎯 A food hall generates a 1.4% rent premium compared to a mere 0.1% for a standalone restaurant. See the full report from JLL in the link below
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No surprise! Landlords who invest in their buildings are seeing returns. With demand for high-quality and differentiated office assets intensifying during the pandemic, highly amenitized buildings are expanding their outperformance against the broader market, particularly those that offer enhanced gathering spaces and prioritize wellness. Highly amenitized buildings—assets with 10 or more tagged amenities and at least one differentiated offering like a roof terrace or full-service fitness center—have resisted the broader downsizing trend impacting the U.S. office market. These buildings have collectively gained 23.3 million s.f. of net absorption since the onset of the pandemic, while the remainder of urban Class A product has lost more than 50 million s.f. of occupancy. #flighttotrophy #trophyoffice #officebuildings #workplacetrends
Highly amenitized buildings generate premium rents and outsized occupancy gains
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With demand for high-quality and differentiated #office assets intensifying during the pandemic, highly amenitized buildings are expanding their outperformance against the broader market, particularly those that offer enhanced gathering spaces and prioritize wellness, according to research by JLL https://lnkd.in/e2rusrEq #property #realassets #realestate
Highly amenitized buildings generate premium rents and outsized occupancy gains
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Highly amenitized office buildings command premium rents and significantly outperform the market on leasing velocity. Want to know which amenities are working and which ones are not? Then click on the link below. #office #amenities #leasing #landlords #tenants #business #productivity #innovation #creativity #marketing
Highly amenitized buildings generate premium rents and outsized occupancy gains
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🏢⚡ Standing out in the competitive Class A office market is key! According to JLL, buildings with EV charging enjoy a 2.2% rent premium. But here's the catch: without proper management, it could mean negative NOI. At OK2Charge, we prioritize smart amenities that boost value and profitability. Let's power up your property together! #ClassAOffice #EVcharging #SmartAmenities #RealEstateInvestment #MoreThanTheCharger 🌟 https://hubs.li/Q02rb21q0
Highly amenitized buildings generate premium rents and outsized occupancy gains
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U.S. Real Estate is changing in Fall 2024. Buyers are looking for eco-friendly homes, more home office space, and smart tech. Affordable housing is also becoming more important. What trend do you think will be the most important? Like this post and share your thoughts in the comments. #realestatetrends #affordableliving #sustainabilitymatters #smarthometechnology #investmenttips
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Highly amenitized buildings generate premium rents and outsized occupancy gains
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Multi Tenant Spaces in CRE?!!!!!!! Multi-tenant spaces in commercial real estate (CRE) refer to properties that house multiple businesses or tenants under one roof These spaces are common in office buildings, retail centers, and industrial parks Here are some key points: 1. Diversified Income: With multiple tenants, the risk is spread out, and income is more stable compared to single-tenant properties 2. Flexibility: Multi-tenant spaces can accommodate a variety of businesses, making them versatile and adaptable to market changes 3. Lower Vacancy Rates: Having multiple tenants reduces the impact of a single tenant leaving, keeping vacancy rates lower 4. Shared Amenities: These properties often offer shared amenities like parking, security, and maintenance, which can be attractive to tenants Investing in multi-tenant commercial real estate is viable due to its diversified income streams, reduced vacancy risks, and flexibility in accommodating various businesses. This stability and adaptability make it an attractive investment option in the dynamic CRE market. #MultiTenantInvesting #CREOpportunities #DiversifiedIncome #CommercialRealEstate #TenantDiversity #StableInvestments #SharedAmenities #CREFlexibility #InvestmentViability #RealEstatePortfolio
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While the standalone office building seems to be going the way of the dinosaur there are ways to create workplaces that are relevant to today's users. Two very interesting reports from #JLL (links below). The first highlights the influence of mixed-use on office performance. https://lnkd.in/gq5_cUia The second confirms the importance tenants and users place on office amenities. https://lnkd.in/eJhu73Qg When you consider both in tandem you have to wonder why we are not pushing harder for the 15-min neighborhood option where amenity is not just in the building but all around. For owner/developers, the advantage of locating in a vibrant mixed-use community is clear. To a significant degree, the amenity-burden on the building is relieved by what your neighbors offer. #commercialrealestate #realestate #office #officeamenities #realestatedevelopment #wfo #rto
Highly amenitized buildings generate premium rents and outsized occupancy gains
us.jll.com
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