Inside the Minds of Top Commercial Real Estate Tenants

Introduction

On November 12, 2024, I attended CREtech 2024, one of the leading conferences in the commercial real estate industry. During the event, I participated in a seminar titled “Inside the Minds of Top Tenants,” which featured speakers from prominent companies, including McKesson, Interpublic Group of Companies, Comcast, Pfizer, and Salesforce.

What stood out to me about this seminar was the evolving mindset of employer-tenants in a post-COVID-19 world. This discussion resonated deeply with me because, before establishing my own law firm, I worked at a firm that maintained an entirely in-office model—even during the peak of the pandemic.

The legal industry, and particularly law firms, is known for its traditionalism and resistance to change. While many companies quickly adopted work-from-home strategies during COVID-19, small to mid-sized law firms faced significant challenges in implementing such transitions. These challenges stemmed from both a lack of technological infrastructure—such as work laptops for employees—and a general reluctance to embrace non-traditional work arrangements.

As a result, many law firm employers opted to remain in-office, unwilling to embrace remote work due to its perceived disruption to the conventional legal work environment.

The Problem

Do you know what the worst part about working in an entirely in-office model in an increasingly connected and flexible world is? It’s the constant, nagging question: Why?

Why am I working primarily in an office when there’s little to no collaboration happening? Why am I enduring a grueling one-hour commute to work and another hour back home, only to spend my day isolated at my desk, behind a closed door, with minimal interaction with others?

The reality is that as attorneys, much of our work is inherently solitary. Our days are primarily spent drafting, researching, and analyzing legal issues—tasks that don’t require collaboration. When we do interact with others, it’s usually over the phone or via Zoom calls, as clients rarely visit the office in person anymore. Even hearings, mediations, and arbitrations have shifted to remote formats, reflecting the changing nature of how legal work is conducted.

So, what is the real purpose of being physically present in an office when the work itself doesn’t demand it? Couldn’t the time lost to commuting be better spent on professional growth, personal interests, or simply improving work-life balance? Does the in-office model genuinely enhance productivity, or is it merely a vestige of outdated workplace norms?

The Solution

Let’s be honest—while collaboration doesn’t happen every day, it’s still necessary at times. Plus, interacting with colleagues occasionally and fostering connections with others is both enjoyable and beneficial. It’s also healthy to get out of the house and into a different environment.

However, the traditional five-day, in-office workweek may no longer be the most effective model. A hybrid setup strikes a balance, fostering collaboration, connection, and company culture while respecting employees' need for flexibility. This is precisely the conclusion that many top companies have reached. They are now rethinking their approach to office spaces, seeking innovative commercial real estate solutions that not only support their operations but also make employees want to come in—on their terms.

So, what are these top tenants looking for in a commercial real estate space? Let me break it down for you.

First and foremost, these tenants are prioritizing healthy commercial real estate spaces. What does that mean? They’re looking for buildings that meet the gold standard for LEED certification and other health and building certifications. These measures ensure that office spaces are clean, sustainable, and conducive to employee well-being. By prioritizing health and safety, these companies aim to show their employees that their wellness matters, creating an environment where they feel valued and supported.

Next, these tenants are seeking shorter lease terms. Why? Because the future of commercial real estate is uncertain. Will companies continue to maintain traditional office spaces in fixed locations for over a decade, or will they gravitate toward shared, communal workspaces that reduce costs and foster collaboration with other businesses? Shorter lease terms provide tenants with greater flexibility and minimize the risk of being locked into a space that may no longer meet their needs after a few years. This approach allows companies to adapt to evolving business models, changing workforce preferences, and shifts in the commercial real estate market, ensuring they remain agile and responsive to future challenges.

Additionally, these tenants are prioritizing attractive amenities in their office spaces. Whether we like it or not, amenities such as gyms, saunas, steam rooms, pickleball courts, and similar features play a significant role in attracting employees back to the office. Employees often weigh the pros and cons of commuting—considering the time and effort of a potentially hour-long drive each way. Offering amenities that employees can enjoy before or after work creates an enticing incentive to make that commute worthwhile. These perks not only benefit employees but also make the office space more appealing to tenants by fostering a positive, engaging work environment that supports both productivity and well-being.

Moreover, tenants are no longer drawn to environments where employees are chained to a desk for eight hours a day. Instead, they are gravitating toward flexible, plug-and-play office setups. These spaces allow employees to come in at their convenience, plug into a desk for a few hours, get their work done, and then head out to work from home or another location to break up the day. This kind of dynamic workspace encourages flexibility and autonomy, aligning with the evolving expectations of today’s workforce while still offering opportunities for in-person collaboration and engagement when needed. As a result, tenants are seeking commercial spaces that are fully equipped with the technology and infrastructure to support such a setup seamlessly.

Finally, another key feature tenants prioritize when selecting a commercial space is reliable connectivity. This includes smooth, efficient elevators and a building fully equipped with Wi-Fi throughout all areas or capable of supporting all major cellular data plans. Tenants should not lose connection when entering the building. The reality is that most workdays begin long before employees set foot in the office. Tenants want to avoid spaces where dropped connections disrupt important calls or workflows, whether in the lobby, elevator, or even the parking garage. A seamless, uninterrupted connection ensures productivity from the moment employees arrive, reinforcing the value of the office environment.

Conclusion

The evolving expectations of tenants and employees in a post-COVID-19 world have redefined what makes a commercial real estate space desirable. Gone are the days when rigid, traditional office setups sufficed. Today’s tenants are prioritizing flexibility, connectivity, and employee well-being when selecting office spaces. From shorter lease terms that provide adaptability to state-of-the-art amenities that incentivize in-office work, the modern workplace is shifting to accommodate the dynamic needs of both employers and employees.

Tenants are also seeking innovative features like healthy, certified spaces that demonstrate a commitment to wellness, plug-and-play setups that offer autonomy and convenience, and reliable technology infrastructure to ensure uninterrupted connectivity. These considerations reflect a broader cultural shift—one that values work-life balance, sustainability, and meaningful employee experiences.

For landlords and property developers, the message is clear: to remain competitive, commercial spaces must evolve to meet these demands. By embracing flexibility, prioritizing health and technology, and offering modern amenities, they can attract top tenants and create environments where companies and their employees can thrive. The future of commercial real estate is not about simply providing office space; it’s about fostering a workplace experience that meets the needs of a changing world.