ReLifeBuildings—Optimising tenant experiences within aging assets.
40% of the Australian commercial tenant market is sub 1000sqm
With the adoption of hybrid work patterns and heightened flexible working, the way we measure floor plate performance has shifted—less so about occupancy densities and centred more around organisational connection and supporting the diverse presence patterns of workers in the office.
Asset holders are igniting the appeal factor through building brand personality and contributing to the vibrancy of precincts through the introduction of new amenity, service offerings and enhancement of visual connection into the vibrancy of reLife buildings.
The advent of new workplace models and workplace landscape embracing a richer diversity of settings and with a heightened demand for collaboration space, the shift from traditional planning has improved the opportunity to optimise outcomes for older commercial buildings. B Grade assets play an important role and are optimal to smaller businesses (sub 1,000 sqm) and start-up businesses looking to be centrally located at more affordable rents.
These buildings also afford opportunity for larger tenants who seek to enhance brand positioning by occupying a whole of site rather than an address within a multi-tenant building.
There is a unique opportunity to enhance and leverage commercial outcomes within these assets is reinforced through traditional non-CBD tenants seeking new space and now viewing the CBD favourably.
With competitive rents and a broader employee amenity offered within a CBD precinct, tenants in fringe locations or business parks are reassessing the merits of CBD locations.
Owners of older assets are seeking competitive tenant positioning as well as capital growth and return and proactively reviewing options to invest in assets to attract and retain tenants. Differentiation in a high vacancy market is important. Often located in prime and desirable CBD precincts – whilst not all tenants want to be perceived to be In premium buildings most are attracted to the benefits of premium precincts. This is particularly appealing to smaller mid-sized professional services firms who desire to be located adjacent to their larger competitors.
40% of the Australian commercial tenant market is sub 1000sqm making B Grade / older asset classes well suited to targeting the single floor or two floor tenants.
The appeal of speculative suites providing quality ready to occupy solutions are also favourable to this market. With heightened tenant expectations towards ESG influencing is also being focused on both environmental performance and social recognition related to demolish and rebuild sentiment. Upgrades to older stock recognise the environmental contribution made through retention and repositioning rather than replacing. Often with iconic architectural merit and character the class of asset is certainly holding appeal to the increasing growth in creative industry who desire brand personality in the buildings they occupy.
