SPECIAL REPORT: Tenants Weighing Amenities More Than Ever

"The amenities of a building, its attractiveness, ease of access and parking, as well as being located in an area that's easy to get back and forth to, are becoming more and more important on all sides," says Logan Brown, senior vice president, Grubb & Ellis Co.'s Houston office. But it's not only parking and nearby restaurants that drives decisions.

"These days, tenants also look for a building to expand in," says Chris Oliver, a Houston for Cushman & Wakefield of Texas Inc.

And right up there with expansion is employee security. "Right behind location, we get questions on whether the environment is secure," Bob Cromwell, managing director with Moody Rambin Interests in Houston, tells GlobeSt.com. "Employee safety issues can really drive the decisions of where a tenant will end up."

Also because deregulation has led to higher energy costs, the question of who springs for those costs can be a make-or-break deal. Oliver, who works with many oil and gas companies, says who pays for the power is a definite tenant concern. "They're using a ton of computers to do their jobs," he says. "These require more power. A more densely populated employee base in the space also drives up your power use per sf."

Cromwell agrees. "It's a big line item for tenants," he says. "As a result, people are more curious to find out when an owner's power contract is up. A new contract could mean higher electrical rates, which could subject everything to an increase."

But Pat Pollan, senior vice president of leasing with locally based Yancey-Hausman points out that some building owners are trying to help by using new technology and programs geared toward less energy use. "A lot of them are doing their best to control electric consumption on the buildings with those methods," he says.

Brokers say a facility's ability to handle the hot business buzzword, "Wi-Fi," isn't quite so important in the Houston leasing arena. Pollan points out that it doesn't make or break a lease even if the building owner steps up with Wi-Fi capabilities. "Some of the tenants still want to go with their own Wi-Fi systems," he explains.

Cromwell says his clients, though, are starting to lob Wi-Fi questions. "They want to know how the building is wired," he says. "Six years ago, we thought it was a big deal to offer fiber optics. Now wireless is the new buzzword."

While amenities continue to play a factor in terms of tenant demand, where the tenant ends up is still a major decision-driver, though that is changing. "Depending on the location, some leases end up being rate-driven while some are amenity-driven," Pollan adds.