Building tenants have responded positively to communication technologies
such as Office Media Network’s Wall Street Journal Office Network.
space,” because they might not need it on a regular basis.
However, what may be a desirable amenity in one setting may
seem superfluous in another. “New York’s a funny place,” says
Siegel. "With so many options for food within two or three blocks,
it’s hard to make a case that a cafeteria makes a difference in a
negotiation. If it’s already in the building, offering it to tenants
helps. But if it isn’t, you wouldn’t make an investment to put it in.”
In the context of a suburban office park, though, the convenience
of an on-site cafeteria might be more of a draw. “Even in some of the
more urban settings, like Stamford, you’re using valuable time to get
in your car and drive,” says Siegel. “A number of buildings in
Stamford have cafeterias, which tenants really appreciate.”
Regardless of whether an office building is urban or suburban,
most tenants appreciate some form of convenience retail, “so you
don’t have to leave the building to get your newspaper or chewing
gum,” Siegel says. Even better, he says, is if other convenience retail
is available from inside the building. “It may not be part of the
lobby, but it may be accessible,” he says. “The most extreme example of that is something like the Rockefeller Center concourse.”
Parking is also an important issue, in some parts of the city as well
as in the suburbs. “Whether you have structured parking under the
building vs. surface parking, whether you have reserved versus nonreserved—all of this influences decisions on some level and certainly it’s something that get negotiated,” Siegel says.
In some instances, the tenant’s appetite for a particular amenity
is determined less by the setting as it is by the type of work the tenant does. For example, in a law firm, where the workday extends
well beyond the normal 9-5 setting, “what’s important is some kind
of relatively inexpensive HVAC,” says Siegel. “Instead of the landlord providing basic services from 8 a.m. to 6 p.m. Monday through
Friday, they’re available from 8 a.m. to 8 p.m. or 7 a.m. to 8 p.m.
Monday through Friday and then from 8 a.m. to 1 p.m. on weekends. You can call that an amenity, but it’s a real savings to those
tenants that have to be there outside of normal business hours.”
Even so, Siegel says building owners shouldn’t pin all of their
hopes on the amenities available at their properties. “Having food
choices available, having a drugstore close by—on the margin,
those things do influence tenants’ decisions,” he says. “But these
days, it’s about the cost of leasing space.” —RENY
THE BACHRACH GROUP, LTD.
WORKING T OGETHER TO DE VELOP NEW YORK ’S FUTURE
CFO The Bachrach Group is your source for leading edge
Executive Recruiting and Consulting Services for
the Real Estate & Construction Industries.
Our reputation is built on over 30 years of success
providing a broad range of services and solutions for
Real Estate and Construction Firms:
• Commercial / Residential
• Owner / Manager / Developers
• Private Equity / Hedge funds
• Advisory Firms
• Investment Banks
PLACEMENT SERVICES • CONSULTING SERVICES CEO
Director of Finance COO
Property Controller Acquisitions
Project Controller Asset / Portfolio Manager
Property Accountant Construction Manager
Real Estate Analyst Director of Leasing
Real Estate Investment Banker Property Manager
AP / AR - Tax Lease Analyst / Abstractor
Portfolio Controller / Accountant Office Manager / Administrator
THE BACHRACH GROUP
39 West 37 Street, 5th Floor • New York, NY 10018
Phone 212.279.7777 • Fax 212.465.0966
thebachrachgroup.com
