Designing perks into tech space ... two key reasons many tech companies offer employee perks -- the first is to gain or keep a competitive hiring edge against the competition -- if everyone is offering tech employees six-figure salaries, the free meals prepared on-site by the in-house gourmet chef, or free dry cleaning, or the fully stocked refrigerators with complimentary snacks and soda, or a free fitness center, or floor bike storage, lockers and showers or the game room with big screens for video games, foosball, pool and ping pong tables might just make the difference. The second reason is if you can bring your dog to work, you don't have to race home at 5 p.m., and if there is a free gourmet dinner, you can stay and work late, which tech companies love ...
Corporate "rightsizing" ... Many employees today don't come to work and sit at their desks all day -- they are mobile, work in different areas of the office or out of the office, are unfettered to a desk computer and function on tablets or laptops. As a result on lease renewal, many companies are redesigning spaces and discovering the same if not more employee headcount can be accommodated, but in 50 or 70 percent less space.
"Companies are really struggling with renew in place versus going to a new site to implement these workplace strategies," says Colliers International Chicago Principal Bob Chodos. Renewing tenants may need enhanced landlord tenant improvement packages to accommodate these changes, and are signing longer lease terms (5 to 7 years versus 3 to 5 years), and savvy landlords understand that, while in the past they could get away with minimum tenant improvements on renewal. Today this might not necessarily be the case, according to the National Real Estate Investor.
By: Jeffrey Weil
Executive Vice President | Colliers International - Walnut Creek
Jeffrey Weil is an executive vice president for Colliers International Walnut Creek. Mr. Weil has specialized in the sale and leasing of commercial properties for 38 years and has achieved CCIM, SIOR and NACORE’s Master in Commercial Real Estate Services with Honors (MCR.h) designations.
Email Jeffrey: email@example.com
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