Experiential retail is one of the biggest changes in commercial real estate, and it has prompted many property owners to take on multi-million dollar renovations to evolve with the market. Experience-based real estate, however, isn't exclusive to retail. Office owners are also seeing the importance of creating a quality experience for tenants. As a result, owners are adding more amenities, common areas and better design to create experience office spaces.

“All office owners are trying to create a better experience than their competitors. To do that, they are including better WiFi, better common areas and meeting spaces, better access to sunlight and open space, better food and more of a campus-type of environment,” Jeff Rinkov, president and CEO of Lee & Associates, tells GlobeSt.com. “I think that it is the same thing as experiential retail, which is what everyone is talking about. It is a similar conversation.”

Creative office has been the leader of the office market, helping to drive down vacancy and drive up rental rates. However, in 2017, there was an increase in sublease space on the market. “The increase in sublease space is evidence of a transitioning market,” says Rinkov. “People are trying to identify more experiential space, and they are trying to create identity for their employees and company based on the space that they occupy. That is finding some second and third generations of companies with higher components of sublease space available at lower rates.”

Despite the success of creative office, the expense is becoming difficult for some tenants. Rinkov believes that we might actually see a return to more traditional office spaces as a result. “I think there is going to be a little bit of a rebound toward more conventional office,” says Rinkov. “When you talk about creative office, you think of exclusively open spaces, and I can envision a rebound toward more conventional office space.”

Instant Insights /

What Is Experiential Office?

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