Landlords Amplify Services to Attract Tenants

CHICAGO—Creating a “live, work, play” environment has become essential for developers and municipal officials seeking to attract new residents to their downtowns or cities. But according to a recent survey conducted by JLL's property management division, landlords across the country are discovering that their office tenants increasingly look for buildings that can provide a similar atmosphere.

JLL's product differentiation survey reviewed services and events offered at all JLL-managed properties across the US totaling 500,000 square feet or more. In total, 66 buildings were surveyed. And with a majority of Americans working more than 40 hours per week, office users want to work in places where they can blend the office with other aspects of their life. These include a sense of social responsibility and activities that make up a healthy lifestyle, along with access to conveniences that smooth their commute to work.

“According to the United Nations, Americans work an average of 499 hours more than French workers every year,” says Dan Pufunt, president of property management at JLL. “Something's gotta give and an increasing number of landlords are realizing that the office can be a great place to add balance for the stressed-out worker. Plus, it's just good business sense. Offering services that drive tenant retention adds to the building's value.”

Recently, corporate social responsibility efforts have grown beyond individual companies and become building-wide initiatives, driven by property managers. JLL found that 85% of surveyed buildings have incorporated more philanthropy into their tenants' lives by hosting at least one charitable event at their property. The survey shows that collecting food, toys, school supplies and clothing for the community and hosting blood drives and free mammogram screenings are the most popular methods for giving back. And 88% held tenant appreciation events such as ice cream socials and holiday gatherings.

“Providing opportunities for community involvement at the property helps boost both tenant engagement and morale,” says Jennifer Christakes, property management operations manager for JLL's Midwest region. “People are always ready to give back, so having it organized at work makes it that much easier for them to incorporate it into their daily lives.”

Other top findings from the survey include:

• Nearly half of properties offer wellness events and more than half provide gym access to tenants. Gyms are the most requested amenity among tenants, proving that health and fitness are a growing priority.
• 53% of buildings offer services such as oil changes, car washes and electric vehicle charging stations.
• Concierge services are another way to facilitate work-life balance for building tenants and are particularly popular in premium quality assets, and 24% of properties offer on-site concierge services.