Owning a commercial property is only half the battle. To make it valuable in the eyes of future tenants, it has to be more than just a building. The question is: What does a tenant look for when deciding on a space to run their business?
A significant amount of time and research precedes that final signature. Agreeing to a contract is no small deal. In this article, we'll detail the top 10 qualities of commercial real estate that matter most to potential tenants — how does your office space rate?
1. Proximity to the Public
Tenants often search for properties that are close to busy, populated areas. It makes employees happier — and thus, employers happier — if they're only walking distance from a downtown area with a selection of restaurants. Good location is key. This is particularly important for tenants with growing companies or in industries that rely on millennial talent. Younger workers are far more attracted to a work environment in a bustling part of town, and offering a stellar location can help tenants thrive.
2. Parking Accessibility
Though it may seem a given, access to a nearby parking lot with reliable vacancy can be a make-or-break factor. Whether it's above or below ground, on-site parking is a must for most tenants searching for a building to occupy. Between commuting employees and important visiting clients, tenants rely on decent parking capabilities to keep everyone in the building happy.
3. Authenticity
Robert Perry, speaking as part of the Workplace Evolution Panel, stated that authenticity was an essential factor for tenants. According to him, they wanted to feel an association with the local market, adopting it as part of their own identity.
Buildings can no longer afford to be blank and bland in a competitive market. Put in some effort to ensure your property has a character of its own — it doesn’t need to be a modern masterpiece to make a splash with tenants.
4. Fitness Centers
Near the top of the list of in-demand amenities, fitness and health centers increase the value of commercial real estate by a serious margin. Many companies like the idea of keeping their workforce in shape, which often equals lowering healthcare costs in the long run.
5. Natural Lighting
No one wants to spend eight hours in a poorly lit cubicle with no view of the outside world. In keeping current with a modern aesthetic, an office should come equipped with tall windows to allow natural light into the space. It's a healthier alternative to fluorescent tubes. Can’t renovate an old building right now? Property owners should at least equip properties with more environmentally-friendly and natural lighting systems to keep the space looking attractive.
6. A Welcoming Lobby
It's the first thing an employee sees when they arrive at work in the morning and the last thing they see before departing for the day. A lobby is often representative of the quality of the building and can turn tenants away if they feel like their clients might be unimpressed.
7. On-Site Dining
Visiting a restaurant or preparing lunch in the morning aren't always options for today's busy workforce. An on-site dining facility saves time and energy that can be spent on projects and elsewhere, offering convenience when employees are short on time.
8. Outdoor Areas
Having a space to sit and relax outside is essential to any property. It's counterproductive and unhealthy to keep employees at their desks all day, and tenants searching for commercial real estate look for buildings with a more natural component.
9. An Open Floor Plan
As companies move away from the cubicle farms of yesteryear, it's important that commercial real estate keeps pace by offering floor plans that allow for unconventional arrangements. A greater degree of flexibility is attractive in just about any property.
10. Tech-Compatibility
An absolute must for any piece of commercial real estate is complete compatibility with all technology used by companies today. The majority of businesses rely on a connection to the internet, and if that service is unavailable because of poor building maintenance or location, the value of the property will sharply drop.
How Many Qualities Does Your Property Have?
Commercial real estate has to evolve to meet the demands of today's choosier tenants. They expect more, so more should be provided. Though most properties don't have everything, every property should have at least some of the qualities listed above.
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