Want to fill commercial office space vacancies?
Industry experts say quality is the key.
The struggle to fill commercial office vacancies is real. Since the global pandemic disruption and the resulting tectonic shifts in how we work, play, and shop, commercial real estate owner/developers have been navigating an often-sluggish return to office life. According to the real estate and investment management experts Jones Lang LaSalle Incorporated, or JLL, the key is quality.
Sure, quality has long been important in the office space sector. But these days, prospective tenants bypass older office spaces, increasing vacancies and leaving owners struggling to attract and retain tenants. The result: aged office buildings are often facing demolition or conversion. So, what’s garnering attention and drawing in tenants? In a word, quality. Let’s take a closer look.
Major trend report in commercial office trends indicates flight-to-quality
In JLL’s most recent office report on the Minneapolis-St. Paul market, industry analysts say tenants are increasingly seeking quality, modern spaces for their offices along with amenities. Best-in-class facilities are drawing workforces back to city centers. The trend has been noteworthy since the pandemic, with new and relatively new construction commanding top dollar and coaxing employees out of their home offices and back into regular office life. Premium office spaces are coveted and offer a valuable carrot for recruiting top talent, retaining high performers, and fostering collaboration and innovation.
In the Minneapolis/St. Paul market, several recent moves have been noteworthy as they buck the widespread trend of downsizing office spaces. Among them, a move by LeGrand to 98,000 square feet, a move by Wold Architects to 64,000 square feet and a Gamer Packaging relocation to 20,000 square feet, all representative of the flight-to-quality movement.
So, what constitutes modern commercial office real estate that can attract office tenants in 2025 and beyond? Think strategic upgrades that allow for flexible environments, quality workspaces, energy efficiency, improved lighting, wellness, and other in-demand amenities. Working with a trusted design and build team can ensure you make the most of your investment, whether you’re looking to modernize an existing commercial real estate property or considering designing and building a new office space to capture discerning tenants.
The time to build for the flight-to-quality is here
If you’re planning to make the most of the flight-to-quality trend with office space in Rochester, MN, or La Crosse, WI, the design-build experts at DBS Group can help. From designing for the trending opportunity at hand to constructing commercial real estate that will stand the test of time, our team is ready to help you build out your investment portfolio to capitalize on the flight-to-quality office trend. Together, we’ll build the future of modern office life in the Upper Midwest, redesigning and redefining work for the changing needs of businesses in our region. Contact us to get started today.