Expert insights: In office market, landlords adding amenities amid the rise in hybrid work models
Commercial real estate experts offer their insights heading into the second half of the year.
Click here to read the full article: Expert insights: In office market, landlords adding amenities amid the rise in hybrid work models | Jax Daily Record
Jacksonville’s office leasing market is undergoing a transformation as it adapts to changing dynamics, including the continued rise in vacancy rates (direct and/or sublease space) and the increased adoption of hybrid work models.
Companies are recognizing the need to entice employees back to the office or “earn the commute” by creating appealing work environments.
In response, some Jacksonville landlords have begun incorporating contemporary amenities to meet the evolving demands of businesses and promote collaboration, productivity and employee satisfaction.
One notable example of this in our market is the Bank of America Tower Downtown, which is investing $4.1 million in an amenity floor that plans to include a community hub, conference rooms, fitness center and even a golf simulator.
This initiative reflects the changing needs of tenants and underscores the importance of modern amenities in the office environment.
As companies increasingly adopt hybrid work models, the focus on office amenities has expanded beyond traditional needs. Amenities such as comfortable and adaptable workspaces, meeting rooms equipped with advanced technology, and creative breakout areas are gaining prominence.
These features foster collaboration and facilitate seamless communication, ensuring that employees can effectively connect whether they are in the office or working remotely.
Per an article recently released by NAIOP titled “The Evolution of Office Amenities,” employee well-being and work-life balance have emerged as critical considerations for companies.
Modern office amenities should be designed to create a supportive and engaging environment that enhances the physical and mental well-being of employees. You may start to see landlords adding amenities such as fitness centers, meditation areas and outdoor spaces to promote employee health and reduce stress.
By integrating amenities that prioritize work-life balance, employers are aiming to create an attractive workplace that fosters employee satisfaction and productivity. A notable example of this in the Jacksonville market is Riverplace Tower, a major office property on the Downtown Southbank, that is looking at both an indoor amenity package (state-of-the-art fitness area and golf simulator) as well as activating its direct access to the river with walkways and custom furniture.
As Jacksonville continues to navigate the challenges posed by rising vacancy rates and evolving work patterns, addressing the changing needs of businesses and employees will be pivotal to turning the corner on reducing these vacancy rates.
Therefore, the incorporation of modern amenities will be among the most vital solutions to be addressed by our landlords to attract new and existing tenants to their office buildings.
Written By Jeff Frandsen: Chair of Developing Leaders of the NAIOP Commercial Real Estate Development Association Northeast Florida Chapter.
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