OccupierEdge_Ed4_BR

Checkmate. The Amenities Game: Occupiers vs. Landlords

Globally, occupiers and landlords are responding to game changing developments in technology, economics and demographics. You can think of the relationship as a game of chess; going back and forth, each decision tied to the next. Let’s take a look at how it plays out and where tactics can be improved. First of all, what are the player’s goals for the game? Landlords want occupants that bring value to their rent roll. In terms of occupiers, they recognise the value of their people and attracting and retaining talent as key to achieving business success. Landlords parry with amenities to differentiate their offering and lure the most valuable occupiers, the biggest, the most credit-worthy, the magnets and influencers who draw the attention of others and in turn help increase the value of their buildings. Occupiers are drawn by an appealing work environment as a positive influencer for their current and future workforce. It sounds like providing amenities is a winning strategy for both players, but recent research of Cushman & Wakefield finds conflict between what occupiers want and what landlords think occupiers want.¹ We found that most tenants identified cost as the most important factor, followed by location. Amenity factors, such as natural light and end of trip facilities were rated highly by occupiers along with large floor plates that can accommodate flexible fitouts. Despite this evident preference, landlords believed that customer perception of the building and services were more important.

What do you consider are important to tenants?

Occupiers Landlords

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Cost

Proximity to public transport

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Flexible fitout

Floor plate size

Customer perception

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Interconnecting stairs

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Flexibility

Concierge services

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Car parking

1 Cushman & Wakefield (2017), OFFICE LEASING, Trends and Outlook

Sustainability

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