Tenants have often considered amenities within their office buildings in order to attract and retain their top talent. This is especially relevant in attracting the millennial workforce.
Projections over the next five years show that 34.4 percent of employees will be aged 20 to 34.
Due to this, that age groups wants and needs are the focus of building owners and future tenants. This trend started with tech firms, who were primarily staffed by millennials, however, it now has effects on a wide variety of industries and their office space. Developers and owners now focus on improved amenities in their buildings, to attract and retain the millennial-staffed companies. There has been an influx of common area improvements that create these “micro-communities”, where employees spend time in between their home and office.
In the past, developers gave two to four percent of their space for basic amenities.
This included parking, a gym, and a simple cafeteria. In an effort to earn top leasing rates, they now can allocate as much as 200 percent more space for amenities. The quality of the amenities has also risen dramatically. Gyms, eateries and wifi areas are built with high-quality finishes and are often filled by well-known companies. The cafeterias often include multiple options, including healthier ones. Coffee bars and dog-friendly areas are common across the country, along with gorgeous lobbies and meeting areas for team events.
These trends have a positive impact on employee morale and productivity, along with first impressions.
Companies also trend more with giving flexible work time, parental leave and other benefits, first impressions of workspace has a huge impact. It’s the first step to attracting top talent and eventually keeping it. Tenants now look right to the properties amenities to see if their employees (present and future) will be engaged, happy and productive. This study claims that design and amenities are important to employee productivity. Its conclusion is that while a workplace that is too dense loses productivity, amenities that support the office layout lead to happy and productive employees.
How this affects our clients.
Tenants need to work to retain their best talent and keep employee engagement as high as possible. In order to do this, you need to analyze your employee base and stay forward-thinking in your office search. You may realize that an upgraded newer building is worth it to satisfy your employees, as opposed to an older but sufficient one. Many times the upgrade can be made with no increase toward your occupancy cost because of the newer buildings more efficient spacing.
As tenant-only advisors are a free resource, be sure to seek an established and experienced team to guide you through this extensive process. If you would like to talk about your options and future plans, please feel free to reach out to Steve Coughlin at (407) 599-7100.
*Cover photo from https://venturexfranchise.com/starting-coworking-space/