Amenities Make a Great Investment For Office Space Investors

The Wall Street Journal has a look, Office Spaces Offering Perks Drive Lease Deals in New Jersey, at how amenities and tenant-driven perks are one of the keys to new lease deals in the Garden State. Office Spaces Offering Perks Drive Lease Deals in New Jersey

The buildings where large leases have been signed are located in both urban and suburban environments, but most are modern amenity-filled spaces and are properties where owners have invested in or are planning significant renovations, brokers said. Tenants are looking for these types of spaces as part of their recruiting and retention tools, brokers and real-estate executives said.

The options for large tenants seeking higher-end spaces with attractive hotel-like features such as outdoor work spaces, comfortable lounge areas and multiple food options are limited to a handful, many brokers said.

β€œCompanies are looking for newer and better product, and when it gets built, it’s going to lease,” said Tim Greiner, executive managing director at real-estate services firm JLL. He added, β€œWhen we talk to companies, they seem to be willing to make the investment in a better building and are not so much focused on rent.”

For those looking to invest in commercial properties for a value-add play it is important to keep in mind how amenities will drive new leasing.