In today's competitive real estate market, understanding what amenities entice prospective tenants can be the key to successful leasing activity. As renters become more discerning in their search for the perfect home, property managers must stay ahead of the curve by offering features that not only meet basic needs but also enhance lifestyle appeal. This resource explores the essential amenities that attract tenants and drive leasing success.
Amenities that Drive Leasing Activity
In flexible and hybrid workplace settings, employers aim to craft engaging, experiential office environments that encourage employees to value in-person attendance several days a week. Key factors include the quality of the workspace, the level of services offered, the vibrancy of the surrounding neighborhood, and the variety of amenities within and around the building.
LandGate's tools for commercial real estate allow commercial property owners and investors to assess a property's proximity to various amenities at a glance. LandGate's platform also provides various data points to help streamline the site selection process, including data about buildable acreage, potential contaminants, offtake capacity, zoning, owner information, and more. To learn more, book a call with our team:
Location-Based Amenities That Drive Leasing Activity
Convenience greatly improves the office and hybrid work experience. Workspaces situated in mixed-use developments with nearby food and retail options embody the 15-minute city concept. This model ensures that work, essential services, and leisure activities are just a short walk or bike ride away from home, fostering a better work-life balance. It also offers employees easy access to social and after-work activities. Properties located near amenities typically have higher commercial real estate values and increased rental rates.
1) Restaurants
The proximity of restaurants to commercial buildings greatly enhances their appeal and boosts leasing activity. Restaurants serve as key attractions for businesses, offering convenience to both employees and clients. With dining options nearby, employees can enjoy a variety of lunches, promoting a balanced and satisfied workforce. It also allows businesses to host casual meetings or entertain clients without long commutes, which is appealing to potential tenants. This increased foot traffic supports local economies and fosters a lively community atmosphere, making the area more attractive for businesses. Strategically located restaurants thus help create a dynamic business ecosystem, driving sustained leasing demand.
2) Schools
The lease value of commercial properties is shaped by various factors, with proximity to schools being particularly influential. Properties situated near schools are highly desirable, especially for families with school-aged children, due to the convenience they offer. This demand often translates to higher property values, as buyers are willing to pay a premium for easy access to educational facilities. For potential buyers or tenants, commercial properties near schools are especially attractive because of this convenience, which also boosts community appeal. As a result, these properties often experience increased values and faster turnover rates.
Moreover, commercial properties near schools tend to experience a surge in foot traffic, especially during peak times when parents are dropping off or picking up their children. This increased foot traffic can be advantageous for businesses operating in these locations, such as retail stores or restaurants, as it can attract more customers.
3) Public Transport
Commercial real estate properties near public transportation are increasingly appealing to tenants. These properties are often centrally located, offering commuters access to various transportation options—a significant advantage for both employers and employees. A joint study by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR) found that commercial property values rise significantly when near transit. In four of the seven metropolitan regions examined, commercial property values increased by 5% to 42% in median price per square foot. The commercial real estate market thrives when residents and commuters have nearby mobility options, including buses, metros, and subways.
Office tenants particularly seek convenient and walkable locations that provide employees with an easy commute and quick access to local dining, retail, fitness centers, and entertainment. Retail tenants benefit from greater visibility in high-pedestrian areas near transit routes, attracting new clients and potential customers. Additionally, businesses close to public transportation contribute to a more eco-friendly environment for their city.
4) Shopping Centers
Proximity to shopping centers is a compelling factor driving leasing activity for commercial properties. Shopping centers serve as major attractions, drawing consistent foot traffic that benefits nearby businesses. This can help elevate the visibility of those properties and attract a diverse range of tenants such as cafes, retail stores, and service providers who can capitalize on the regular influx of potential customers. Additionally, properties near shopping centers are often in high-demand communities, offering convenience not only to business operators but also to their employees and customers. This adjacency allows businesses to maintain a higher customer base and revenue potential, which is especially appealing to retail and service-oriented tenants. The increased foot traffic results in more frequent visits and transactions, contributing to the commercial property's value and making it a strategic choice for businesses aiming to thrive in competitive markets.
Building Amenities That Drive Leasing Activity
In today's competitive commercial real estate market, building amenities are crucial for attracting and retaining tenants. These features boost tenant satisfaction by providing convenience and improving the work-life experience. These offerings not only increase tenant retention, but also allow properties to command higher lease values, making them essential for property developers and managers aiming to maximize investment returns.
1) New Construction
Newer commercial buildings often see increased leasing activity due to the attractive features modern construction offers. These buildings come with state-of-the-art technology and infrastructure that meet contemporary business needs and boost efficiency. Amenities like high-speed internet, smart energy systems, and advanced security attract businesses looking to stay competitive. Designed with sustainability in mind, new constructions use eco-friendly materials and energy-efficient systems, appealing to tenants who want to reduce their carbon footprint. The modern aesthetics and flexible layouts allow businesses to customize spaces to reflect their brand, enhancing employee productivity and satisfaction. These factors make newer commercial buildings appealing for businesses looking to establish themselves in prime locations with facilities that support growth and innovation.
2) Retail & Restaurants On-Site
In the realm of commercial real estate, integrating dining options can dramatically boost property value. Experience-oriented dining can elevate a typical retail space into a lively hub. For example, a mixed-use development with a carefully curated array of restaurants and bars can draw more visitors, extend their stay, and subsequently drive sales across all tenants.
Additionally, properties with top-notch food and beverage offerings often achieve higher rents and experience lower vacancy rates. Commercial property owners and investors should understand that tenants are willing to pay more for locations that offer more than just a meal— they seek venues that create memorable experiences, encouraging repeat visits.
3) Common Areas & Conference Rooms
Common areas and conference rooms in commercial properties are key to attracting more leasing activity. These spaces offer tenants amenities that boost collaboration and community among businesses. Well-designed common areas serve as informal meeting spots where employees from different companies can interact and network. This sense of community appeals to tenants who value a dynamic work environment.
Conference rooms provide facilities for meetings and presentations, eliminating the need for tenants to lease extra space. The convenience of on-site conference facilities makes these properties attractive to businesses looking to optimize space and costs. Moreover, modern conference rooms with advanced technology support virtual meetings, meeting contemporary business needs. As a result, commercial properties with these amenities often enjoy higher tenant satisfaction, lower vacancy rates, and increased demand for functional and flexible workspaces.
4) Sustainability/ Smart Buildings
Sustainability and smart features are increasingly driving leasing activity in commercial real estate. Sustainable buildings, designed with eco-friendly practices, help reduce energy consumption and create healthier environments. They often use renewable energy resources like solar panels, green roofs, and efficient water systems, leading to lower operating costs. As businesses focus more on their environmental impact, demand for these spaces grows.
Smart buildings use advanced technology to manage energy efficiently and improve building operations. Features like smart HVAC systems, lighting controls, and occupancy sensors help save costs by using resources wisely. IoT devices and data analytics enable real-time monitoring, ensuring a seamless environment.
Sustainable buildings also reflect a company's commitment to corporate social responsibility, aligning operations with environmental goals. This can enhance corporate image and attract eco-conscious customers and employees. As sustainability and technology become more important, properties with these features are set to see increased leasing activity, maintaining competitiveness in the market.
5) On-Site Parking
On-site parking and EV charging stations significantly boosts leasing activity in commercial properties. Properties with dedicated parking offer convenience and accessibility, appealing to both businesses and their clients. For tenants, on-site parking eliminates the hassle of finding nearby spaces, especially in busy urban areas where parking is scarce and expensive. This convenience improves customer experience, encouraging more visits and longer stays, which supports tenant business growth. It also streamlines employee commutes, reducing absenteeism and fostering productivity. As a result, commercial properties with ample on-site parking experience higher demand and lower vacancy rates. They attract diverse tenants, from retail to professional services, who benefit from increased foot traffic and customer satisfaction. Thus, on-site parking is not just a bonus, but a strategic asset that enhances property appeal and ensures long-term occupancy.
Finding Commercial Property Proximity to Amenities
Evaluating a commercial property's proximity to amenities is a critical part of the site selection process. LandGate's tools for commercial real estate provide nationwide amenity data, allowing you to assess a property's proximity to various amenities like schools, restaurants, shopping centers, gas stations, and more at a glance. LandGate's platform also allows you to assess the data center and renewable energy potential of commercial properties, allowing owners and investors the opportunity to take advantage of sustainable initiatives. To learn more, book a call with our team:
