30 / 66
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.
>
>
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.
>
>
Amenities provide for the types of tenants
they seek to attract: collaboration spaces and
fitness centres for tech companies, chauffeur
lounges and private fine dining experiences for
hedge funds.
>
>
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 realise they can fulfil 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