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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.
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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.
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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.
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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