Guess who’s dropping big money to keep millennial workers happy?

Big commercial landlords are laying down millions to update offices

TRD WEEKEND EDITION /
Jan.January 07, 2018 01:45 PM

(Credit left to right: The Real Deal for Brian Kingston and Owen Thomas photos; Stephen Schwarzman photo by World Economic Forum; Pexels photo, back)

If you guessed Blackstone Group, Brookfield Property Partners and Boston Properties, you’d be right. The major commercial landlords are investing big to stave off the WeWorks of the world and keep millennial workers in their offices.

Without altering office to include the perks of a gym, free in-office cafes and bars and a flexible, open-concept layout, these landlords don’t believe they can hold on to tenants, according to Bloomberg.

“The way towers were built in the 1980s, they were a monument to the corporation,” says Lisa Picard, CEO and president of Blackstone’s Equity Office. “Now, if it feels corporate, that’s the kiss of death.”

The numbers support her theory: Colliers’ research team noted vacancy rates were up to 11.5 percent in Boston last year in the fourth quarter while in Manhattan, the firm expects about 8 million square feet to be vacant in the coming years.

To keep old tenants and attract new ones, landlords are getting creative: Boston Properties reportedly dropped $100 million to renovate 399 Park to include bike valets among other new features, while Brookfield’s tenant JPMorgan Chase is renting new space for its software engineers in 5 Manhattan West which will be outfitted with soundproof rooms for playing music or games.

[Bloomberg] — Erin Hudson


Related Articles

arrow_forward_ios
WeWork's co-CEO Sebastian Gunningham speaks at the launch of Dock 72

What, We Worry? Execs remain confident in WeWork-anchored Brooklyn project

An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!

Blackstone buys Colony Capital’s warehouse portfolio for $6B

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

arrow_forward_ios