The Evolution of Office Space: What Today’s Tenants Want

Michael Anderson

LAS VEGAS – Offices today are evolving: open floor plans, fewer private suites, and smaller individual offices are becoming the norm. Lobbies are being expanded and retail is increasingly visible rather than hidden behind walls. Fitness centers—once relegated to dark, tucked-away corners—are now prominently placed with windows and easy access.

These trends emerged during the “Workplace Evolution” panel at the 52nd annual conference of the National Association of Real Estate Editors (NAREE) in Las Vegas late last week.

“One of the biggest shifts we’re seeing is a change in the developer’s mindset,” said Michael Anderson, Executive Vice President at Colvill Office Properties, who oversees the firm’s leasing team. “Developers are now focused on the tenant experience and on understanding market trends.”

Robert Perry

Older buildings with segregated, disconnected spaces are falling out of favor, added Robert Perry, leader of CBRE’s Strategic Partners U.S. He noted tenants increasingly seek sustainable, connected, and thoughtfully designed office environments.

“Developers are concentrating on the tenant experience—how to create workplaces that energize people and help attract tenants,” Perry said. “Tenants want sustainable, connected, collaborative spaces with interesting design that brings the outdoors in and provides transitional gathering spaces. That makes the workplace more appealing.”

Natalie Snyder Bode, director of Cushman & Wakefield in Dallas, said the younger workforce is a major force behind these design changes, favoring open, collaborative layouts.

“Office space has become a recruiting tool because companies want to retain talent,” she explained. “Most offices now use open plans. Tenants are also increasing density: private offices are often as small as 10 by 10 feet, and cubicles are shrinking to roughly 6 by 6 feet.”

Natalie Snyder Bode

Prospective tenants are also prioritizing abundant amenities. “They ask where employees will eat and expect a variety of options at different price points,” Snyder said. “Many want an onsite deli and nearby restaurants within walking distance.”

Planning for amenity placement has become more intentional. Instead of consigning windowless areas to conference rooms or fitness centers, developers are allocating better, light-filled spaces to support employee wellbeing. Panelists agreed that recruitment and retention are critical, since labor represents a tenant’s largest expense.

“Employee comfort matters,” Anderson said. “Traditional amenities like fitness centers and conference rooms are being designed more thoughtfully. You no longer find fitness centers crammed into 2,000-square-foot windowless rooms near the garage.”

Fitness centers and conference rooms increasingly feature natural light, and rooftop areas are being activated for employee use, Anderson added. “Building lobbies are opening up and retail in lobbies is no longer hidden behind granite walls; it spills into the lobby and creates interaction opportunities for all tenants.”

June 18, 2018 Realty News Report Copyright 2018