by Brianna Crandall — August 1, 2016 — Real estate company Transwestern’s latest edition of “Insights” explores new commercial real estate trends that are gaining popularity among property owners, tenants and developers. The articles focus on the WELL Building Standard, contemporary office building renovations, and niche multifamily developments, demonstrating how each can boost tenant satisfaction and improve the bottom line.
Quantifying healthy workplaces
Workplaces that promote health and well-being are important to corporate real estate users seeking to improve employee productivity and compete for the most talented workers. But until recently, no method was available to measure the effectiveness of those efforts, notes Transwestern. The International WELL Building Institute introduced the WELL Building Standard performance-based system last year, and adoption of this tool is growing.
- WELL identifies 100 performance metrics, design strategies and policies for measuring, certifying and monitoring how the built environment impacts health and productivity through air, water, nourishment, light, fitness, comfort and mind.
- Transwestern provides comprehensive WELL consulting services, in addition to WELL assessments to determine the score a building or tenant space could earn.
- Whether or not an occupier’s space obtains certification, adopting certain recommended improvements from an assessment could achieve the desired outcome.
Read more at “Working WELL: WELL Building Standard Quantifies Tenants’ Healthy Workplace Advances.”
Executing popular property improvements
With Millennials now making up the largest segment of today’s workforce, building owners need to stay abreast of their wants and needs to keep their buildings competitive, reminds Transwestern. In the article, Transwestern details how Shorenstein Properties invested $20 million to renovate 1.2 million square feet at Washington Square in downtown Minneapolis.
During the first 16 months of renovation, Transwestern leased more than 345,000 square feet of vacant space, boosting occupancy from 81 to 93 percent at 100 Washington Square and from zero to 65 percent at 111 Washington Square.
Net rental rates have increased from $11.25 to $16.25 per square foot — 30 percent above pro forma.
Some of the improvements include:
- LED-backlit staircase leading to a widened main entrance and new coffee shop, creating a pedestrian-friendly street-level presence
- Eight-mile skyway system linking buildings throughout downtown Minneapolis
- Ceilings removal to expose ductwork and create 14-foot high space
- Conversion of an under-utilized outdoor plaza into a multi-purpose space with a club lounge, lawn space, coffee shop, bocce court and Zen garden
Read more at “It Pays to be Cool.”
Developing for Baby Boomers
Astute developers are targeting a growing rental demographic — Baby Boomers — and the resulting communities are as different from traditional multifamily assets as Baby Boomers are from conventional renters, says Transwestern.
Transwestern Development Co. is constructing The Laurel, a new 159-unit community in the Park Cities area of Dallas, Texas, that targets those who are reaching retirement age. The community design, amenities, services, unit size and features will allow residents to downsize without compromising their lifestyle or location.
- The Laurel will feature a significant number of two- and three-bedroom floorplans, with units ranging from 1,100 to 2,310 square feet. This is significantly larger than other similar communities in Dallas that average 825 to 1,000 square feet.
- Boomers may spend more time at home entertaining guests, so the units were designed to have defined dining areas and kitchens with extra cabinets and more counter space.
- Interior finishes, appliances and master baths will rival those of the custom homes Boomers are accustomed to, while private garages will provide additional security.
Read more at “Developing for Baby Boomers: Not Your Millennials’ Multifamily Unit.”
