Commercial Property Upgrades That Attract Higher-Paying Tenants

Things have changed in the commercial real estate world. Owners who aren't upgrading are losing their top tenants. And the ones who remain? Aren't exactly high-paying.

The Problem:

Upmarket tenants don't want just four walls and a slab of carpet. They want attractive spaces that make employees excited to come to work. Spaces that speak to their brand. Spaces that feel premium.

Fortunately, there's a solution.

What you're going to learn:

• Why Commercial Outdoor Living Solutions Are Important

• Premium Commercial Property Upgrades Tenants Want

• The Financial Benefits of Outdoor Spaces

• Making Your Property Stand Out From The Crowd

Why Commercial Outdoor Living Solutions Are Important

You may have heard the phrase commercial outdoor living solutions floating around lately. They've become one of the hottest topics in property right now for good reason.

Here's why:

Modern office tenants aren't just concerned with the traditional space inside the building anymore. Outdoor spaces such as balconies, rooftops and landscaped courtyards are critical to their decision-making. These spaces allow teams to work, collaborate and spend time together outdoors. Results have shown that when employees are given these options, there is higher productivity, less stress and increased employee retention.

This is great news for property owners looking to push their rental price. Upgrades such as custom pergolas can turn a bland and unused courtyard or rooftop space into a beautiful outdoor "room" that tenants will pay more money to work in. By installing commercial outdoor living solutions such as pergolas, property owners can gain an advantage over others that remain a plain office box.

According to JLL research, properties that offer more amenities than the average saw 12% more demand than those that didn't. This should be reason enough for commercial property owners to listen up.

But there's more.

Premium Commercial Property Upgrades Tenants Want

Installing random upgrades to your property that look nice isn't going to magically get you premium tenants.

If you want to upgrade your property to appeal to high-paying tenants, you need to know what they're looking for.

When evaluating their commercial lease options, premium businesses care about factors that will improve their teams' wellness, productivity and happiness.

Some of the upgrades they're looking for include:

• Beautiful outdoor amenity spaces

• Flexible common areas

• Modern utilities and wifi

• Energy efficient features

• Automated building systems

How do you provide all this? Outdoor living spaces.

As we get deeper into this you'll understand exactly why outdoor upgrades are key to upgrading your property.

Outdoor Spaces = More Money In Your Pocket

This is the section where the money talk happens. How much can commercial property owners actually make from installing commercial outdoor living solutions?

Let's assume that right now your commercial property has an ugly, empty courtyard in the back. That courtyard is costing you money. Yeah, you heard that right.

But by adding a nice covered pergola, some furniture, Wi-Fi and plants... you can now rent that space above market price because it's considered a nice "bonus" area.

According to CRE Daily, offices in areas with nearby outdoor spaces can charge up to 30% more in rent. Who wouldn't want that?

Bonus fact: Outdoor spaces don't just attract new tenants, they help retain your current ones. Tenants with access to these "perks" are much less likely to leave when it comes time to renew.

Tenant turnover is costly. In fact, some estimate that finding a tenant to replace your current renter can cost you three times more than retaining them.

By giving your tenants access to world-class outdoor spaces, you're giving them a reason to stay. That's got to help out with the old budget.

Essentially, when you install commercial outdoor living solutions you aren't just attracting new customers. You're also retaining your best ones.

Standing Out From The Crowd

Commercial property investors are faced with a massive problem. Too much space and not enough renters.

Office vacancies are higher than they've been in decades. This puts pressure on owners to make their properties stand out from their competitors.

Here's the deal:

When lease-up time rolls around and it's time to find new tenants, you have to sell your property as best you can. If you're investing in upgrades that today's tenants care about, you'll always be one step above the competition.

So what are today's commercial tenants looking for?

1. Wellness

2. Experience

3. Flexibility

If you want your property to stand out from the crowd, you must deliver on these three key items. How do you do that? Through commercial outdoor living solutions.

Let's take a look.

Start by looking around your commercial property. Specifically outdoor spaces. Find areas that are wasted, and use them.

• Shade is crucial. Install pergolas or awnings to keep tenants comfortable throughout the seasons.

• No office space is complete without plants. Greenery will make that wasted area come to life.

• Don't forget about Wi-Fi. Make sure those outdoor spaces are usable by installing an effective outdoor network.

This can't be stressed enough. If you're a commercial property owner and you're not utilizing your outdoor spaces, you're leaving money on the table.

Bringing It All Together

Attracting and keeping high-paying tenants to your commercial property can be easy if you follow one rule.

Your property must deliver an experience.

Upgrading your property with amazing commercial outdoor living solutions is one of the best ways to provide that experience. Fill your property with beautiful landscaped spaces, outdoor workplaces and covered pergolas.

Here's your commercial property upgrade checklist again:

• Make sure your commercial property has amenity spaces. Ideally outdoor ones.

• Install modern upgrades tenants will appreciate such as shade, plants and tech.

• Outdoor spaces = More rental income.

• Remember to stand out from the crowd. Provide an experience that keeps tenants happy and they won't leave.

Commercial property owners that take advantage of their outdoor spaces and throw some sweet upgrades at them will thrive. The ones that don't? Will be lucky to keep their tenants at all... let alone charge them premium rents.