Office Amenities Redefined: Why Daycare May Emerge a New Top Priority

In this article, you'll explore:

• The rising priority of daycare services in office spaces for work-life balance.
• Upgraded office amenities aimed at increasing employee presence.
• Success stories of businesses that have integrated childcare into their offices. 
• Strategies for optimizing office space for hybrid work.

The corporate world has undergone a profound transformation, marked by the emergence of fresh priorities. Foremost among them is the desire for work-life freedom. Americans seem to overwhelmingly opt towards accessible work environments and the freedom from the 9-5 grind it enabled them to have.

Now, in the midst of mass-return to office murmurs, many are dragging their feet. A staggering 65% majority of Americans pinpoint the avoidance of daily commutes as their top barrier to returning to the office. Right behind, at 62%, is the crucial need to strike a balance between work and personal life.

So, in this scope, the prevailing preference continues to lean towards hybrid work schedules, signaling a profound and permanent shift that has taken place in workforce dynamics. And as we navigate these evolving trends, it's clear that a potential return-to-work revolution is on the horizon. But the office doesn’t look or function the same.

A sort of compromise can be achieved between employees who prioritize this newfound family-time and employers who are tired of overpaying for wasted collaborative space. And the key to unlocking new space productivity and employee loyalty in this new normal may be carving out daycare spaces in your offices. Read on to learn why.

Want More Employees in the Office? Invest in More Upgrades

Many companies are trying to make the investments in the CRE portfolios worthwhile by upping the expectation for the frequency of office visits. The hope is to increase the utilization rate of the corporate offices and reduce the divide of wasted space. But in order to do this, employees need to willingly want to visit their corporate offices.

Because with the omnipresent option of working from home, companies that do insist on the value of physical workspaces need to reorient the use of these spaces to become more appealing.

So, as companies reevaluate their pre-pandemic working environments, there is a new emphasis placed on bringing employees back to the office with premium features and upgraded spaces. This has launched a pervasive Flight to Quality, driving tenants’ interests in modern, premium commercial real estate.

Some of the key amenities at the forefront of this transformation include state-of-the-art parking facilities, cutting-edge fitness centers, and convenient daycare services. These offerings go beyond the traditional workspace, demonstrating a commitment to providing employees with a holistic and enriching work experience.

Simultaneously, as businesses invest in enhancing employee experiences and fostering a sense of well-being in the workplace, they are also finding ways to optimize their space utilization. This dual approach not only contributes to a more engaged and satisfied workforce but also helps alleviate the issue of wasted space, ensuring that every square foot serves a purpose.

In this endeavor, companies are breathing new life into underutilized areas within their offices. The process of rejuvenating such spaces not only maximizes the utility of the office but also aligns with the evolving expectations of the modern workforce.

Because optimizing your space utilization goes beyond tracking your utilization. It means making tough decisions about the efficiency of your commercial portfolio and how it can be improved. So, is there underused space that can be better used for other purposes? 

Additionally, while considering external drivers like the importance of spending time with family, premium office amenities are aligning themselves with this fundamental aspect of employees' lives. Offering daycare services within or near the workplace has emerged as a highly appealing gesture to attract and retain talent.

It is strategic move for businesses to not only enhances the appeal of premium office spaces but also demonstrates a deep commitment to supporting the holistic well-being of employees, acknowledging that work-life balance remains a top priority for many professionals.

Corporate Daycare Success Stories

The market for offices equipped with daycare services is largely an untapped opportunity, but it's rapidly gaining widespread interest, especially in areas where this concept has proven successful.

A play area at the child-care center at Marriott’s headquarters in Maryland

Marriot International, which has one of the most notable portfolios in the industry, expanded its existing child-care services last year. The new investment involved constructing a bigger daycare and preschool area at the company’s headquarters in Bethesda, Maryland. Now, it acts as one of their most alluring workforce amenities.

Similar moves have been taken by household names like Patagonia and financial services companies like Northern Trust. Both organizations have made leaps and bounds facilitating positive relationships with employees, boosting loyalty and measures of trust since implementing amenities for child care.

Not only are daycare centers overwhelmingly appreciated by employees, but they prove to be a top facilitator to moving employees back into the office. Parents who take advantage of onsite childcare facilities tend to be the earliest adopters of coming back to the office. And because of this alone, they are likely to be in the spotlight from businesses looking to return to physical collaboration.

But that’s not the only reason why corporate day care centers may become more common, even reaching commonplace amenity status.

With the Biden Administration’s $53 billion plan to revitalize the U.S. semiconductor industry, new legislature known as the Chips Act, seeks to enforce manufacturers to provide affordable access to quality childcare to its employees.

This means the trend of including daycare facilities will surely make waves through the warehouse and manufacturing industries as well as the office market. There has already been a successful precedent set by Tyson Foods Inc., which is creating childcare centers in their headquarters and poultry plants in Tennessee.

So not only are appropriate childcare centers deeply appreciated in the workplace, but strategic implementation can also empower a more robust return to the workforce. This is especially true for women and men where childcare demands can often act as an unsurmountable barrier to entry.

Building out these facilities offers tenants the potential to make a substantial mark in a swiftly changing environment.

Right-sizing to Your Needs

In today's evolving workplace landscape, optimizing your office space is paramount. As you transition to hybrid work styles, having extra space means an opportunity to enhance efficiency. Rather than letting it sit underutilized, consider transforming it into functional hybrid workstations that facilitate collaboration with remote colleagues or create a dedicated area for on-site daycare, a valuable amenity for working parents.

This approach aligns with the trend of moving away from traditional open layouts and oversized conference rooms, making room for more practical designs that cater to hybrid collaboration. As you reassess your office space requirements, remember that Right-sizing isn't just about utilization; it's about creating adaptable environments that meet your evolving needs.

The shifting nature of employee collaboration has impacted the office market but also unearthed opportunities for forward-thinking businesses. Investing in a collaborative, employee-centric workspace yields significant benefits. By fostering an environment that encourages teamwork and work-life balance, you enhance employee well-being, attracting and retaining top talent.

To stay competitive and future-ready, consider redefining workplace norms by offering flexible spaces, leveraging technology for hybrid collaboration, and providing amenities that go beyond the traditional office. These strategic investments position your business for growth and success in an ever-changing business landscape.

These considerations, among others, should guide your search for the ideal hybrid-friendly office space.

And if your current broker isn't offering innovative ideas like these, it might be time for a conversation. Let's explore the possibilities together.

In the mean time, if you want to continue learning, enroll in the free course to learn everything corporate tenants need to know to find the best office space for the best terms and price.