Office Tenants Champion Company Morale

McNeil: “Visible amenities tenants can gravitate to immediately will lead to higher rents.”

LAGUNA HILLS, CA—Making sure employees are happy at work is a major driver behind the office-amenities arms race, in which what may once have seemed like a crazy idea is no longer, Lincoln Property Co. leasing agent Kevin McNeil tells GlobeSt.com. McNeil handles the leasing for Oakbrook Plaza, a 120,000-square-foot, class-A office asset here, purchased a year ago by Lincoln and its partner Angelo Gordon.

At the time of purchase, the asset was approximately 75% leased with rents at $2.35 per square foot. Over the past year, the leasing team has completed more than 15 leases and increased occupancy up to 97%, and rents are now at $2.85 per square foot. Among the reasons for the increase in occupancy and rental rates, according to Lincoln, are the owners’ investment in outdoor collaboration spaces, on-site amenities, “back of house” upgrades and other improvements; drafting off of Irvine Spectrum as rents and occupancy increase there; benefiting from area redevelopment (retail, apartments, restaurants, etc.) both at nearby Five Lagunas Mall and the area in general; and improvements in market conditions, where tenants are making decisions to expand, open new offices and relocate with longer term commitments.