Undertaking investment in your property can often entice new tenants into your space and also show your existing tenants that you want to continue to provide the best experience for the duration of their current tenancy and beyond.
Great communal facilities are something that can either make or break a building, providing the foundations for your tenants to create destination workplaces for their staff. While each occupant may not have space for showers or bike storage, the availability of these facilities in shared spaces can very well impact their choice of building.
Your building’s shared spaces will be shaped by the type of tenants that you’re looking to attract. Smaller businesses will be attracted by open plan and communal facilities that they wouldn’t necessarily look to build, or have the budgets to dedicate space to in their own fit out. These could include communal or co-working spaces to entertain clients, such as an open plan cafe to casually meet clients away from standard office areas. Larger corporate tenants would make use of these spaces (who doesn’t love a good cafe!), while also placing an added importance on an impressive reception and concierge service.
Enticing common areas can also make your building more attractive to both incoming and renewing tenants...and this includes the toilets, which shouldn’t be overlooked! If your tenants’ employees have been complaining for years about the drafty, clogged toilet on the third floor, then chances are they’re going to want to have that sorted as soon as possible. Tenants don’t want the impact of their own new fit out to be weakened by shabby or underwhelming common facilities that are embarrassing to both staff and clients.
Wellbeing accreditations and facilities
Investing in the base infrastructure needed to achieve a BREEAM or Ska rating can help entice new tenants that’re looking to target a wellbeing or environmental accreditation in their fit out. Installing an energy-efficient mechanical and electrical (M&E) setup that supports their accreditation could just make their decision to move that bit easier. By installing an environmentally friendly M&E setup, you may also qualify for tax benefits and concessions, while also reducing lifetime running costs for your tenants.
Quality shared services can also help your tenants implement wellbeing initiatives for their staff. For example, shower facilities would be needed for your tenants to promote cycling to work, or implementing a lunchtime running club. Providing these shared amenities for the building can help your tenants attract and retain (and keep healthy) their industry’s best talent.
Reduces void between tenancies
If your new tenants move in and can rely on the Cat A infrastructure you’ve provided, it’ll make their Cat B fit out easier to build and allow them to occupy their space sooner, reducing your tenants build costs. This will help you in lease negotiation, as you may have to make fewer concessions to get a new tenant in, such as extended rent free periods.
Increases rental yield
By investing in your property, you’re sending an active message to your tenants and to the market that your building still deserves that premium yield that you’re asking for. Good Cat A foundations, shared services, reliable M&E and an impressive reception can also help you retain tenants and see you making fewer concessions at your next rent review.
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