4 Current Trends Driving Commercial Tenant Improvement Projects

If you haven’t renovated your commercial office space in a while, there are several economic and social factors are driving commercial tenants to seek out the newest and and most recently renovated buildings, and we’ll dive into those below. Let us know if you have any questions about commercial tenant improvement trends or need a partner for your next renovation!

1. Millennials Will Soon Be Half Of The Workforce

According to the Pew Research Center, millennials have made up ⅓ of the workforce since the start of 2015, and by some predictions they will make up half of the workforce by 2020. Companies will continue to compete for this valuable talent pool, meaning tenant improvement projects which cater to millennial tastes will create good returns for landlords.

Millennials tend to want flexible, collaborative office environments and integrated technology. Many commercial buildings have added gyms, coffee shops and café-like office kitchens or break rooms to attract tenants with millennial workers.

2. The Number Of Commercial Tenant Vacancies Continues To Drop

According to research from JLL, commercial tenant vacancies have been steadily dropping since 2011, leading to increased competition among landlords for quality tenants. Commercial tenant improvement projects in many downtown areas are bringing older city office spaces back to life with open, collaborative spaces, and the unique architecture and convenient location are important to many possible commercial tenants.

With the continued rising cost of land and growth of e-commerce, many businesses no longer need sprawling buildings or multiple locations and are happy to consolidate into a centralized, downtown location.

3. Technology Is Transforming Commercial Tenant Improvement

According to an interior design trends report, popular design trends right now include collaborative, multipurpose, playful workspaces as well as designs which bring natural elements indoors. With the help of our collaborative partners we’re able to help create more interesting tenant improvement project designs than ever before.

Besides design technology, the technology companies seek to have in a commercial space has changed. Many commercial tenants today are looking for a cool, high-tech office even if they aren’t in a tech-related industry. By utilizing specialized lighting fixtures and security systems which can be operated by computer software, adding digital displays to meeting rooms and common areas, capabilities for high-definition video conferencing and more, you can draw those tenants to your space.

4. Businesses Are More Environmentally Conscious Than Ever

As the past few decades have progressed, the entire nation has become increasingly environmentally conscious, especially in small personal decisions such as recycling or the amount of packaging a product comes in.

To play into this mentality, a commercial tenant improvement contractor like i2 Construction can leverage net zero design strategies – meaning energy is produced on-site to offset energy usage, and energy usage is reduced – such as passive solar technology, ultra energy-efficient construction materials and highly-efficient water usage. Building automation, lighting controls and sensors can contribute to energy efficiency, and many of these items have state or federal tax incentives attached to them.