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Office Perks to Drive Occupancy

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Landlords will have to look at offering better perks and amenities to their tenants, with the latest figures showing a weak result in the take-up of office space across Australia's office markets last year.

There was a positive net absorption of 15,200sq m over the last quarter on national office markets and 50,000sq m over the year–the weakest result since 2014.

Giving occupiers better spaces and on-site activities were key ways to retain tenants according to CBRE’s latest occupier survey report.

Increased amenity—buildings, facilities, cafes and green space—was an important factor when choosing head office accommodation for 69 per cent of respondents.

A rising 47 per cent of respondents indicated perks inform this decision-making including on site gyms, personal services, work social groups and personal services.

CBRE pacific head of workplace strategy Nicole Fitzgerald said tenant demands and expectations of the workplace had evolved.

“[While Perks] were seen as an important driver in choosing a suitable landlord, only 6 per cent of respondents thought their building manager was adequately delivering these initiatives in their building,” she said.

CBRE national director of client solutions Suzette Lamont said the response signalled a gap between the occupier demand for perks and how these perks were successfully being delivered.

“An opportunity exists for landlords to fill the perk void with a well-curated program of events and initiatives that resonates with their buildings’ communities,” she said.

“We do this through a systematic way of polling what people want, rather than trying to offer them something they don’t.”

The survey also revealed changing market conditions, including the ongoing rise of flexible working practices and an increasing reliance on the gig economy, were driving the need for flexibility and space-as-a-service, and that the possibilities afforded by data and technology were yet to be harnessed effectively by landlords.

“Landlords that also utilise advanced analytics will be able to better support and engage with occupiers in tracking and improving productivity and space optimisation, [positioning] them as an integral partner in their occupiers’ workplace strategy and decision-making process,” Fitzgerald said.

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Article originally posted at: https://theurbandeveloper.com/articles/office-perks-to-drive-occupancy