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Private Equity Real Estate Investments

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

Highly amenitized buildings generate premium rents and outsized occupancy gains

Highly amenitized buildings generate premium rents and outsized occupancy gains

us.jll.com

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