Modernized amenity-rich offices outperform the rest of the market in Chicago Suburbs
Amenities has become the buzzword across the suburbs with an increasingly amount of buildings undergoing renovations.
October 23, 2019
- Amenities has become the buzzword across the suburbs with an increasingly amount of buildings undergoing renovations. Furthermore, JLL Research has found there is a direct correlation between a capital investment of at least $10M and higher Class A occupancy rates.
- Average asking rents in amenitized* buildings are $8.00p.s.f. higher and have a lower vacancy rate by 790bps on average when compared to the overall market.
- Class A occupancy rates appear to be on average 10% to 30% higher for those that have added amenities and improved overall aesthetics, than their suburban counterparts.
- As companies demand higher levels of service and integrated amenities within their buildings for purposes of talent recruitment and retention, expect more suburban owners to focus on capital improvements. Why? Because 41% of job seekers base their decision on the physical workspace.
Source: JLL Research, World Green Business Council
*amenitized criteria is +$10M investment since 2014