Office landlords offer pickleball and retail pop-ups to attract tenants

Singapore office buildings now have pickleball courts and fitness classes to attract tenants.

Analysts say buildings with amenities can charge 20% more rent.

These initiatives turn shared spaces into areas for wellness and social activities.

Property owners say the trend is driven by changing workplace expectations after the pandemic.

Frasers Property Singapore makes placemaking a key part of its office management.

The company offers urban farming, food trucks, fitness, and pickleball across properties.

Instead of new space, the landlord repurposes existing areas for multiple uses.

Hot-desking areas can become event spaces, and pickleball courts share space with futsal courts.

The firm's senior director says they look for opportunities to provide new amenities without needing more floor area.

Demand for such facilities is strong across different types of tenants.

Shared amenities help companies that cannot provide them on their own.

Big companies can provide such spaces, but not every company can, so landlords create common spaces.

This helps interaction between workers from different organisations and strengthens workplace communities.

At CapitaLand's properties, placemaking includes workplace experiences and events with retail partners.

One example is a collaboration with fashion retailer Love, Bonito, for styling sessions and a fireside chat.

Other programmes include wellness activities with Adidas and a wildlife conservation pop-up event.

There's a shift towards integrating work, live, and play, so offices are no longer just for work.

Analysts say such efforts influence leasing decisions.

Companies emerging from the pandemic realised offices need to offer more than just desks and meeting rooms.

The driver for employees is around amenities, access, and conveniences.

The best buildings in town offer those amenities.

Landlords that create such offerings can command 10-20% rental premiums and higher occupancy.

The highest quality buildings with the greatest amenities have the highest occupancy and drive rental growth.

Singapore's office market is supported by limited new supply and steady demand from financial services.

Vacancy rates in prime office buildings have fallen from 5.5% to 3.3%.

Demand is coming from artificial intelligence firms expanding from co-working spaces.

These firms are taking up more space as they grow, with some taking 10,000-100,000 sq ft.

Analysts say the tight market is expected to persist.

Around 609,000 sq ft of new office space is expected to be completed this year.

Supply is expected to remain below 1 million sq ft in 2027 before rising in 2028.

With supply constrained, analysts expect office rents to continue rising in the coming years.

COPYRIGHT DISCLAIMERS

4English does not own the rights to this content. All rights belong to the owner. 4English only uses this content to help users learn English via the app's features. Contact to request the removal of your content: contact@4englishapp.com.

Практика аудирования