In today’s CRE landscape, capturing tenant attention is key. In a 2018 Buildium survey of property managers (residential, commercial and retail sectors), 48 percent stated that growth was their primary goal for their property. A good metric to measure growth is your property’s ability to attract and retain tenants.
How can you stay on top? Bring amenities to your property. In that same Buildium survey, only 16 percent of property managers are focused on creating a community. When your property has cutting-edge, community-driven amenities, you rise above the competition.
Adding amenities will likely save you money. In research of the small submarket in Southwest Austin, AQUILA found that, on average, tenants were willing to pay an additional $1.80 per square foot per year for a comprehensive set of amenities than those who signed a lease in a building with a basic set of amenities. For new leases, the number increased rapidly to $3.24/sf/yr. Considering the cost of adding amenities is cents per month, you’ll come out ahead.
Read on for 4 ways to bring amenities to your property.
Use a Fully-Managed Amenities Provider
When you’re looking at amenities, the first step is to find the right vendor. Buildium’s survey reported that 32 percent of property managers felt like efficiency was the largest challenge at their property. We get it, you juggle many tasks, and you need to devote quality time to the things that matter. Let Fitspot take the work off your plate. Our fully-managed solution includes a dedicated account manager that coordinates logistics, marketing, and the scheduling/implementation of our on-site experiences. Fitspot customizes amenities to fit your space and can be implemented in as little as three months.
Plug-In With Technology
The next step is to spread the word to your community, and PropTech is the way to go. Our e-book outlines how technology can engage communities by promoting on-site services and creating a virtual community through crowdsourcing. Fitspot’s technology features a calendar to spread the word to tenants about upcoming events and tenants can see a list of who is attending from the building. For property managers, our technology includes analytics tracking so you can measure participation and engagement. In CBRE’s Real Estate Market Outlook 2019 53 percent of respondents believe that technology advancements will have the greatest impact on properties within the next three years, and 15 percent believe that the impact is already visible. We’ve talked about how to create a sense of well-being inside your property, and smart infrastructure such as auto lighting, temp, etc. can add as much as 11.8 percent lease value, according to Wired Score’s “Building Trends.”
It wouldn’t make sense to provide a rooftop lounge if your building is located in one of the rainiest or windiest cities, because your tenants likely wouldn’t spend enough time using it. That’s where surveys are key. You can find out exactly what your tenants want before you bring in amenities. Fitspot surveys your tenants throughout the journey, and we start during the sales process, to find out what amenities your tenants are interested in. Our goal is to provide engaging amenities that are appealing to a diverse population. If your tenants don’t care for fitness classes, then we can offer community events such as healthy happy hours, cooking classes, chair massages and more. When your property offers cutting-edge amenities, you gain the upper hand to attract top tenant talent. In fact, the Gensler 2016 US Workplace Survey found that innovators have two times more access to amenities than non-innovators.
Add in Flexible Spaces
The rise of coworking spaces has made commercial real estate become even more competitive, growing 23 percent each year since 2010. Many tenants host their entire company within your building, meaning you have entire departments taking up a floor, instead of the segmented startups and individuals that use coworking spaces. But you can still take a page from their book and add in flexible space. This can come in the form of open seating, shared offices or conference rooms, and communal kitchens. For the Millennial and Gen Zers, this gives properties a “cool factor.” CBRE’s Real Estate Market Outlook found that flexible space is growing, and 54 million square feet of new space hit the market in 2019. They predict flexible space will account for 10 percent of Class A space by 2028. In the next three years, 45 percent of workplace design will be activity-based, allowing flexibility in seating, movement, and freedom of space.