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NAIOP study shows that the vast majority of all office tenants seek vibrant, amenitized environments, but demand differs widely by industry

  • ​Building amenities ranging from showers and lockers to programming like happy hours and fitness classes have become the new normal in upgraded office buildings, but at a price. With amenity packages ranging from $80 to $150 per square foot for build-out according to the recently released NAIOP study “Activating Office Building Common Spaces for Competitive Advantage,” return on investment in the form of higher rents is essential and varies widely.
  • Savvy investors should strongly consider their building’s image in the marketplace and the types of tenants they want to attract before going all-in on high-end amenities. Survey data show that desire for vibrant office building environments is extremely prevalent among technology tenants but may be significantly less important in buildings that are targeting more traditional industries such as manufacturing and finance.
  • While a diversified tenant base is critical to minimizing risk in any office building, landlords should strongly consider the industry make-up of tenants in the market before committing to expensive amenity packages. ​

Source: JLL Research, NAIOP Research Foundation​

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