Forward Thinking Solutions to
Attract & Retain Existing Tenants

Workplace strategies and building technology are constantly evolving. To attract and retain tenants, the buildings themselves need to keep pace with these changes – or risk becoming obsolete.

To provide their occupants greater flexibility and a choice of when and where they can work, progressive companies are embracing a range of workplace solutions, both within their existing tenancies and external support space opportunities. These new ways of working, and their implications on office space, include:

• Activity Based Working provides office staff with a choice of settings for different work activities.
• Coworking is a business services provision model to create innovative, collaborative, and community-driven workspaces that move beyond traditional work environments.
• On-demand Spaces are paid for on an as-used basis – allowing employers to more easily manage and respond to changes in demand.
• Hoteling is the short-term provision of office space to a temporary worker.

Benefits of Repositioning for Building Owners

With more businesses looking to adopt agile workplace strategies, buildings that are equipped
with the necessary amenities will be in high demand – resulting in tenants who are prepared to pay a premium for the space.

When an office building can’t accommodate new workplace practices, it risks further downgrades,
longer vacancy periods, or reduced rental returns.

Successfully upgrading a building’s services and activating its common areas will lead to a broader
tenant pool, improve the overall rental achieved, and increase the capitalization rate of the building – ultimately providing incremental value uplift to owners.

The internal rate of return on investment on these upgrades varies depending on a project’s circumstances, but is typically between 10-20% a year.