Empty Office Amenities Become a Costly Burden
Once hailed as a competitive edge for office landlords, flashy amenities like gyms, lounges and game rooms are now often sitting empty—creating a costly problem for building owners. What was meant to attract tenants has instead become an underused space that drains resources without adding value.
"Office amenities making the greatest impact today are those that support how tenants spend their day, rather than those designed solely to look impressive during a tour," said Danny Dulkin, president of LIVunLtd's Development Services platform.
He told GlobeSt.com that amenities aligned with real tenant behavior—such as fitness and wellness centers, social F&B environments, flexible workspaces and access to outdoor space—continue to generate strong demand.
"Using fitness as an example, tenants are looking for more comprehensive wellness environments that incorporate recovery and relaxation products to reset during the workday," he said.
"These spaces are being used not just before or after work but throughout the day, which significantly increases their value in boosting engagement."
Dulkin pointed to CommonWealth Partners' amenity offerings at City National Plaza in Los Angeles and JDL Development's trophy office tower, 919 Fulton, in Chicago, as examples of projects that have successfully embraced this approach. The latter features extensive outdoor areas and a curated mix of conferencing and fitness spaces designed to encourage everyday use.
According to Dulkin, the biggest misstep owners make is designing spaces around aspiration rather than actual tenant behavior.
"Wrong-sized conference centers, under-programmed lounges, legacy fitness centers filled with the wrong equipment, and some novelty spaces like an underwhelming game room often fall into this category," he said.
"The spaces may look appealing on a tour, but they are not aligned with how their tenants work, recharge, or interact throughout the day. As a result, they sit largely unused after the initial interest fades."
The financial implications are significant. Dulkin noted that landlords often invest hundreds of dollars per square foot in amenity spaces.
"When those spaces are not actively used, it can translate into millions of dollars in capital that does not contribute to leasing velocity, tenant retention, or rent premiums in a meaningful way," he said.
The solution, he explained, lies in "shifting the mindset to curating actively used environments." That means, he said, "prioritizing utilization and convenience over aesthetics, right-sizing spaces based on real demand, incorporating programming and operations early in the design process, and, where possible, repositioning underperforming areas into more flexible or wellness-oriented uses that can support higher engagement."
Going forward, Dulkin believes the amenities offering the strongest returns are those that meaningfully connect with tenants' daily routines.
"In today's market, that generally includes socially driven community building spaces, wellness-forward environments, and comfortable outdoor spaces," he said. "We like to look at tenant psychographics to really hone in on building needs."
High-quality food and beverage offerings paired with a lounge atmosphere "perform well because they serve as daily touchpoints that elevate the overall tenant experience," he said. Flexible spaces that support meetings, events, or wellness programming "maximize utilization and ensure that square footage is consistently delivering value," Dulkin added.
Source: GlobeSt/ALM