OccupierEdge_Ed.4_US 5_17

LANDLORD STRATEGIES: ‘WELCOME TO THE CONCOURSE LEVEL’ Landlords are making the most of new developments which have the luxury of a clean slate and premium pricing. > > They’re incorporating interesting amenities: expansive roof decks and gardens, open air atria, clubs on elevator transfer floors, secure elevators and lobbies for anchor tenants, parking privileges and accommodations for drivers and cyclists. > > Amenities provide for the types of tenants they seek to attract: collaboration spaces and fitness centers for tech companies, chauffeur lounges and private fine dining experiences for hedge funds. > > Buildings now incorporate sustainable design principles and separate metering to help offset operating costs for each tenant. All this comes with some of the highest rents ever. Across the world, this trend is strengthening with significant amenities provided in new high rise towers everywhere. As an occupier, however, it is still possible to benefit from access to these experience-rich environments without paying the premiums to be in a new building. Globally, landlords are re-positioning older assets with large capital improvement programs, adding amenities to attract tenants and become more competitive. They realize they can fulfill the need for higher quality work environments that tenants are demanding. By renovating existing buildings and unused spaces such as transfer floors, interior retail spaces and narrow floorplates, landlords can turn their Achilles heel into market leading tenant amenities. To that point, there is a rise of tenant-lounges with artisanal coffee baristas, boutique hotel-style lounge seating, co-working, meeting and collaboration spaces. You say basement, landlords say, "Welcome to the Concourse Level." A good example in London is the redevelopment of Battersea Power Station, a decommissioned coal-fired power station, into a multifunctional mixed-use work/ live space.

30 The Occupier Edge