JLL recently issued a report showing that, as demand for high-quality and differentiating office assets intensified during the pandemic, highly amenitized office buildings are outperforming other market offerings, particularly those offering enhanced gathering spaces and prioritizing wellness.

JLL reports that assets with 10 or more amenities and at least one unique offering such as roof terrace or full-service fitness center have managed to buck the overall downsizing trend in the U.S. office market, adding that these buildings have collectively seen 23.3 million sq.f. net absorption since pandemic’s start, while most urban Class ‘A’ product lost over 50 million sq.f. of occupancy during that same timeframe.

Differentiation and quality are at the forefront of amenitization’s benefits for rent premiums: while fitness centers alone may generate only 0.5% rent premium against peer assets, those equipped with full-service gyms with locker room and shower facilities often garner over five times greater premiums compared to baseline rent premiums. Buildings offering some form of food service or restaurant, such as cafeteria or food court offerings only see negligible 0.1% premium against peers while those equipped with food hall amenities garner 1.4%.

Many of the strongest rent premiums can be seen with enhanced outdoor gathering spaces: roof terraces and courtyards featuring outdoor seating areas generated significant rent premiums against comparable assets in JLL’s analysis, according to its findings.