You’ve likely heard of SaaS, or “software as a service,” but what about space as a service? If there is unused square footage sitting vacant within your property, you’re leaving valuable revenue on the table. Think conference rooms, event spaces, even wellness facilities or food and beverage outlets. There is a demand for these venues, and by incorporating them into your existing floorplan you open your facility to an entirely new revenue stream.
There are two main ways these vacancies can create additional revenue: through external rentals or tenant activation. For example, a commercial real estate property can create co-working spaces or conference rooms available for public booking on an open floor. But say your facility isn’t interested in opening to the public at this time, that same available space can be turned into service areas that augment your tenant’s workweek, like private phone rooms, mother’s rooms, showers or locker rooms, even cafés or bars. Gallup reports that companies with engaged employees see 17 percent more productivity and 21 percent higher profitability than those without, and activating underutilized spaces is just one way to engage employees and tenants.
There doesn’t need to be a lot of square footage for a vacancy to become profitable, either. Even small vacancies can be valuable, but success hinges on the commitment to dedicating resources and attention to the space. The more strategically an amenity space is planned and activated, the quicker results can be generated. But how do you identify these areas within your property, let alone activate them? That’s where a professional firm like Arch Amenities Group can assist. By partnering with an amenities management group, you gain access to their expertise in identifying potential spaces and maximizing their profitability. This removes the burden of planning, marketing, and operating these spaces from your shoulders, positioning you for increased revenue and a strong return on investment.
Rockhill Management is reaping these benefits at its 42-story office property at 1700 Broadway in New York City. Looking to both attract new tenants and retain its current ones, as well as encourage a return to the workplace, Rockhill reached out to Arch Amenities Group for amenity center management in addition to hosted conferencing and community engagement services. After undergoing a dramatic, modernizing transformation, the Class A Midtown Manhattan building became a hub for community and collaboration with a lounge featuring coffee and cocktails, community programming, an intimate state-of-the-art gym, flexible meeting and event space, and a 2,000 square foot rooftop terrace.
In Austin, TX, Arch Amenities Group worked with Stream Realty to activate amenities and space at RiverSouth, a Class A facility in Austin’s South Central Waterfront District. The Arch team designed—and now manages—stunning glass-encased fitness facilities and The Skylounge on Lady Bird rooftop venue with lounge, café, and bar. Additional amenities including spa-inspired changing rooms, ground-level restaurants and shopping, bike valet and storage, underground parking, and 24/7 onsite security make the building all the more attractive to potential tenants. Since the start of its partnership with Arch Amenities Group, RiverSouth reached a 98 percent occupancy within 18 months, received a SmartScore Platinum Rating and became LEED Gold Certified.
If you’re wondering if partnering with Arch is the right way for your property to turn underutilized space into a revenue source, take a look at the following questions:
What are the most popular ways buildings are activating their spaces?
The most successful Arch Amenities amenity consulting and technical services clients are offering hosted meeting and event spaces, which include audio and visual services, food and beverage offerings, and concierge services. Other popular activations and amenities include training and professional development spaces, wellness facilities, game rooms, cafés and lounges.
What if I don’t have enough vacant space to develop an offering?
Square footage is just one factor in turning a vacancy into a profitable space. A landlord or building manager’s commitment plays a bigger role, such as investing in transforming the space, conducting market research to see what amenities their tenants find valuable, and optioning knowledgeable partners for assistance with planning and execution. While size can be a factor, the key lies in strategic planning and activation—a well-designed phone booth can be a more valuable addition for focused work, while a large, poorly planned conference room might not attract users.
My property has already been built and developed, is it too late to activate new spaces?
We can provide premium services regardless of timeline on your building’s development. While it’s ideal to onboard during pre-opening so we can consult with your architects, AV installers, furniture procurers, and network designers, we’ve also been successful contracting within 60 days of opening. It’s never too late to add additional revenue streams to your business.
Why work with a management group rather than fill my own space?
The Arch Amenities team has decades of experience maximizing the potential of spaces. By partnering with an outside firm, you’re getting a fresh perspective on a floorplan you’ve likely grown too familiar with. We provide feasibility studies and need analyses followed by architectural and interior design solutions. From there, we’ll share a brand development and action plan complete with strategic marketing and promotion. We’ll be with you from pre-opening through launch and beyond with ongoing operational maintenance and support should you need it. We’ll do all the heavily lifting so you don’t have to.
What types of locations does Arch help create activated spaces for?
If there’s an empty space, we can activate it. Arch has created additional revenue streams within spas, fitness centers and hotels, commercial real estate properties, country clubs, residential communities, even meetings and event venues.
What does the development process look like?
Once we receive your request for proposal detailing services you’re looking for, an Arch expert will reach out to you with more specific questions to ensure our team can add value to your space. From there, the Arch team will tour your facility and generate a proposal based on what renovations and services are feasible within your budget.
Who manages my space once its open?
Arch Amenities Group offers continued site management on all of our development projects. Most of the services offered by our meeting and event clients such as receptions or community engagement are managed by Arch.
How long until I see an ROI?
This depends on how your business defines its return on investment as well as the services offered and the positioning of your assets. New builds tend to see returns once new tenants are signed, while repositionings (the introduction of new activations in an existing space) often see immediate impact with existing tenant excitement and bookable space occupancy. Cost associated with these investments can also be shared as annual operating expense amongst tenants.
Ready to turn your underutilized space into a revenue stream? Connect with Arch Amenities Group today.
