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Workplace_Amenity Arms Race

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In the amenity arms race, are we losing sight of how to build a better workplace? Zombie buildings and the amenity lfyou'resomeonewithastake incommercialreal

estate,youmighthavenoticedthehypearoundoffice amenitiesrampinguplately.Theintemelisburstingwith "must-ha veperks" toincreaseproperty valueandwin the amenityarmsrace.But inthebattletoluretenants with luxury,a re we losingfocusonhowto bu ildabetter workplace? Threeyearsafterthepandemictumedlivelyproperties AttheTallcklnc.headquarters, theofficeisthestar

into zombiebuildings,agooddea l ofofficespace

amenity.

remains vacantorunderutilized . Andit mightgetworse beforeitgetsbetter:withmorethan 74milhonsquare feet ofleasedofficeandmixed-usecollateralsetto

expire in 2024, tenantswillsurelyseizetheopportunity toclaimhigher-qualityspaceonmorefavorableterms

Morethanhalfofcompaniespfanto reduceofficespace by30% overthenexlthreeyears

The age of amenitization The word amenity comes from a Latin root meaning " pleasantness" or"delightflllness."Assomethingthat providesoomfort,convenience,orenjoyment_amenities havebeenaroundformillennia.AncientRomancities hadpublictoiletsandbathhouses.Medievaltownshad

Flight to Quality

horse stablesandvillagegreensforpubliceve nts

There'snodolJbtthattop-tierbllildings inprime locationshaveanedgeovertheirlesser-qllalityandnot-

Overthepastfewdecades,amenitieshavetakenona newlifeand meaning.Sincetheadventofthem odern

as-ideally-locatedcolJnterparts.BlltevenClassA propertiesaren'timmllnetoseismicshiftsinwhereand

office,they'vegonefrom metaltrashcans {top revent firesfromdiscardedcigarettes)andairconditioning

how work gets done

{introducedinthe1920s) to beehives andpickleball Upscaleamenities- the moreextravagant_thebette rmight looklikethegoldentickettofulloccupancyand premiumrents.Butthenoisearound luxuryseemslobe drowningoutmore importantconversationsaboutthe

Amenitize, as a verb, entered the Oxford English Dictionary in 2020.

ro leoftheofficeandhowitcanmeettheverydifferent needsofaposHXlVIDworkforce

~

1/

39%

A well-considered workplace is the best amenity

oi commercia\ property owners p\an to add amenities \ike fitness centers, tenant lounges, and outdoor spaces over the next several years

Yes,amenitiesareimportant.Officebuildingswith diverseanddesirableofferingswill probably fare better inacrowdedmarket.Butwethinkawell-considered workplace,onethatispreciselytailoredtotheroutines, needs,andpreferencesof lhepeople whouseit- while stillbeingflexibleenoughtowithstandchange- willbe the starattractionforposHXlVIDofficebu ildings

SoUrCC'

THREE IDEAS ... to amenitize your office

1

CHANNEL THE • POWER OF 10+

ThePowerof10+isa planni ng conceptusedbythe ProjectforPublicSpaces to brealhe lifeintourban settings.llhingesontheideathatsuccessfulpublic spacesneedtohavea · criticalmass " ofcompelling activitiesandfeatureslodrawpeopleinand hold their attention.lnotherwords, ·irsnotenoughtohavea singleusedominateaparticularplace_· lnanurbanpfan ningcontexl,thismight looklikea publicparksurroundedbyfoodvendors,afountain,a dogpark,shadyseating,aplayground,andotheractive features .Appliedto workplacedesign, this might look likeanofficethatprovidesarangeof mterestingand usefulreasoos foremp loyeestobe there

MAKE IT RESIMERCIAL

2

The res1mercia l trend blendsresidentialandcommercial designtocarveout home-/ikespacesin theoffice Sofas, armchairs,ambientlighting,flexiblespaces,and

• usingdesigntogivepeopteasenseofsafety,comfort, and belonging_ ln ourownresearch,we'reexploringthebenefitof home-l ikequalitiesinwork settings.Anecdotally, employeeswitha"homecourtadvantage· aremore creative,productive,andhappyatwork.Evensimple interventions likeadjustabletask lightingand reconfigurable furnishings, orencouragingemployeesto personalizetheirdeskswithfamilyphotosormementos, couldhaveapositiveeffect

3

THINK • SMALL

Now thathybridis heretostay,theofficehasan even higherbartoclear.Manyworkersha veadecenthome setup,sowhyshouldtheyspendan hourmthecar just to sitatadifferentdesk?A workp lacethat increases productivityandmakesit eas1ertoconnectwith coworkers providesva luethathomeofficescan'teasily match Whenitcomestoworkplacedesign.identifyingday-today frictionpointsandfocusingoninlerve ntions to streamlineworkprocesses,addresssourcesofirritation, orprovidesmall,unexpectedmomentsofdelightcango a longwaytowardsimproving theoveral l employee

Source: Mom/ngConsultSfateofWorkersreport,

2023

,.. Thenextstageofgettingworkersback Productivity consultant Joe O'Connor attheirdesksincludes incentivesand discussesstrategiestooptimizetime consequences, acoordingtoTheNew

asa!imitedresourceinthe "Happ1er

YOfKTimes

atWork"podca st.

NeuroeconomistPaulZak recommendstaking"quickbreaksto refreshthebrain "likewa lking, medilal ing,orevenpausingtolookout thewindow, acCOfdingtoBloomberg


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