May 29, 2023
September 19, 2019 - Arminco Inc.
Recently, several projects have been undertaken where they aspire to create an office building with unusual amenities for those who are willing to pay. Because people feel more comfortable and more at home in a hotel, these projects decided to borrow several ideas from these hotels.
For one, they don’t want to use traditional material such as white or gray marble used in office buildings. They are focusing on a much more modern approach. Turnstiles tend to be eliminated. Instead, a doorman can be placed at the front gate where they will greet tenants, much like a real hotel. Several phone applications are incorporated that help the tenants to choose certain food and drinks to be delivered to their office. The food and beverage are also selected based on tenant feedback. It’s not just the most expensive kind available, there is actually a wide variety of choices for the tenants.
The key to running these projects is not to focus on a standard layout but to focus on the local scene, the locale, type of tenant, and the type of client that may visit. A high-end law office requires a much different vibe than Google or Facebook. In fact, a standard layout can even cost more. For example, some buildings could include a golf simulator, something that you may find that no one really uses! They have decided to focus more on features the tenants are more likely to use.
Most people assume that these kinds of projects are unnecessarily expensive and there are several ways to simplify the design and save money. Many times, developers want to create an experience rather than focusing on profit. There is no single formula for this type of this program and the developers are trying to be creative.
Unlike extended stay hotels, in which short term tenancies are longer than traditional hotels, the turnover of customers is still directly related to the current economy. An immediate effect is felt if something scares the market. While long term leases can help guarantee that there is still a revenue flow to keep the building afloat. It’s that ‘feel’ of a hotel that the tenants enjoy.
Needless to say, these properties have much higher rents than average buildings, but it is probably worth all the amenities and services that you are getting!
Photo Courtesy: Cisco Systems San Jose, CA.
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