The Business Case for Investing in Tenant Amenities

1700 Broadway, New York City Green Tenant Amenities Space

With nearly 75 percent of workers required to return to the office at least part-time, and commercial rents continuing to increase year over year, it’s no surprise that tenant expectations now extend far beyond the basics of square footage and location.

The quality, accessibility, and variety of amenities offered in commercial properties play a critical role in leasing decisions, tenant satisfaction, and overall property performance. As such, buildings that are prioritizing strategic, thoughtfully designed tenant experiences have begun to stand out in competitive markets, attracting and retaining high-quality tenants while supporting long-term financial stability.

In a market where every square foot counts, the right amenities can make all the difference, making the case for investing in tenant amenities clearer than ever.

How Amenities Influence Tenant Retention

Tenant retention increasingly depends on the quality of the workplace experience. Amenities that support comfort, productivity, and well-being create a sense of value for tenants, making them more likely to renew leases. Properties that invest in thoughtfully designed spaces stand out in competitive markets, while those with minimal offerings risk higher turnover and vacancy costs.

A recent study by Alvéole found that commercial buildings featuring biophilic design elements such as green roofs, living walls, and indoor plant features have seen measurable improvements in tenant engagement and satisfaction. The hospitality industry validates this trend, with research showing guests willing to pay 18 percent more for resort hotels and 12 percent more for city hotels with views of nature. Commercial tenants show similar willingness to pay premiums for buildings that provide authentic connections to nature through thoughtful design and programming.

These nature-based amenities not only enhance the day-to-day experience but also support lease renewals, reducing the financial and operational costs associated with tenant turnover. By focusing on the tangible impact of amenities rather than simply listing them, property owners can design spaces that attract commitment, increase satisfaction, and ultimately protect revenue through longer lease terms.

Attracting the Right Tenants

Amenities do more than retain existing tenants, they also help properties attract high-quality occupants from the outset. In competitive markets, prospective tenants increasingly evaluate buildings based on the experiences they offer, not just the size or location of the space.

For instance, properties with fitness centers and wellness rooms appeal to companies that prioritize employee health and well-being, while outdoor terraces, communal lounges, and rooftop spaces attract tenants who value collaboration and informal networking. Tech-enabled meeting spaces and adaptable layouts draw tenants managing hybrid work models. Even smaller conveniences, like on-site cafes or concierge services, can influence lease decisions by enhancing convenience and daily experience.

By strategically offering amenities that align with the needs and values of target tenants, property owners differentiate themselves in the market and position their buildings as desirable, long-term spaces. This approach ensures that both the property and its tenants thrive in competitive environments.

Financial Benefits of Amenity Investments

Investing in amenities delivers measurable financial advantages by increasing property value, supporting higher rental rates, and reducing costs associated with tenant departures. Tenants are often willing to pay premiums for spaces that offer convenience and experiential features. Research shows that properties that incorporate a diverse roster of amenities may experience up to 12 percent higher demand from tenants versus their plain commodity counterparts.

These amenities also help reduce the hidden costs of lease transitions. Vacancy periods, leasing commissions, and marketing expenses can add significant operational costs when tenants leave. By creating environments that promote satisfaction and engagement, property owners can extend lease terms and mitigate these risks. Thoughtfully designed spaces can also drive occupancy rates and long-term asset stability. Buildings with highly rated amenities attract tenants who are more likely to commit to multi-year leases, providing consistent cash flow and enhancing overall portfolio performance. This combination of higher rental rates, reduced lease-related costs, and increased tenant attraction underscores the strong business case for amenity investment.

Trends Shaping Tenant Amenity Expectations

Tenant preferences in commercial real estate have evolved, influenced by technology, lifestyle changes, and sustainability. Key trends, noted by Axis, Ciminelli, Commercial Property Executive, and Building Engines, include:

  1. Flexible Workspaces: co-working areas, hot desks, and shared offices support hybrid work and foster community.
  2. Wellness Amenities: fitness centers, yoga studios, and wellness rooms promote physical and mental health.
  3. Tech-Enabled Spaces: touchless access, smart security, and energy-efficient systems improve convenience and safety.
  4. Sustainable Features: green certifications, sustainable practices, and renewable energy appeal to eco-conscious tenants.
  5. Community and Collaboration: lounges, conference rooms, and outdoor spaces foster networking and engagement.

Properties that align with these trends can see measurable results. For example, the Arch Amenities-managed RiverSouth building in Austin, TX utilized amenities such as glass-encased fitness facilities and The Sky Lounge on Lady Bird rooftop venue with lounge, cafe, and bar to differentiate itself in a competitive market, achieving 98 percent occupancy within 18 months of opening.

Partnering with Experts to Maximize Impact

Investing in amenities is only part of the equation—executing them effectively is equally important. Partnering with experts ensures that amenity programs are strategically designed, efficiently managed, and tailored to the unique needs of tenants. Arch Amenities Group offers comprehensive commercial real estate amenity management, overseeing day-to-day operations while creating engaging experiences that drive tenant satisfaction.

To further maximize impact, Arch offers a proprietary, data-driven platform called Profiles by Arch, designed to help property owners tailor amenities to the specific needs of their tenants. The platform collects and analyzes tenant data, including preferences, engagement patterns, and usage trends, to determine which amenities will deliver the most value. Using these insights, our experts then create a curated programming recommendation of events and activations for your building.

The Business Case for Investing in Tenant Amenities

Investing in thoughtfully designed amenities is no longer optional for commercial properties; it’s a strategic imperative. The data shows that amenities influence tenant satisfaction, retention, and lease decisions, while also differentiating a property in a competitive market. By creating spaces where tenants want to be, property owners can foster engagement, encourage lease renewals, and turn amenities into measurable drivers of long-term financial performance.

Well-executed amenities enhance daily tenant experiences and provide tangible value beyond square footage. Through operational expertise and data-driven insights, property owners can design amenities—or enlist the help of partners—that not only attract high-quality tenants but also support sustained occupancy and revenue growth.

Ultimately, prioritizing tenant experience through strategic amenity investment strengthens a property’s competitive edge, builds loyalty, and secures its long-term financial performance.