As remote work continues to reshape the commercial office market, a Midwest-based real estate investor faced a harsh reality: dwindling tenant retention, increasing vacancy rates, and a marked decline in revenue. With 3 of its 5 major tenants downsizing or exiting, and few signs of long-term lease commitments returning, the investor needed more than a leasing strategy—it needed a rethinking of the office experience itself.
Through a combination of research, repositioning, and experience-focused innovation, the property rebounded, increasing occupancy by 20%, reversing a 15% revenue drop into a 20% gain, and boosting market perception by 34 percentage points.
Project Overview
Asset Type: Commercial Office Tower
Location: Midwest Metropolitan Area
Status: Operational, Underutilized
Client Type: Private Real Estate Investment Group
Initial State
- Occupancy: 65% average occupancy, with regional fluctuations
- Revenue: 15% loss compared to pre-pandemic performance
- Market Sentiment: Only 42% of stakeholders held a positive outlook on the asset
- Tenant Behavior: Office downsizing driven by remote work, low tenant engagement, and poor amenity value
Key Challenges
- High Vacancy Rate — 3 of 5 anchor tenants vacated or reduced square footage
- Remote Work Resistance — Employees lacked motivation to commute to outdated, uninspiring spaces
- Amenity Gaps — The building offered few incentives for tenants or employees to return
- Weak Tenant Confidence — Long-term leasing outlooks were dim
Turnaround Results
- Occupancy Increased to 85%
- Revenue Recovered from -15% to +20% (35% swing)
- Market Perception Jumped to 76%
- 75% Return-to-Office Compliance among a major tenant
- Tenants attracted by differentiated features, notably an on-site daycare and revitalized community spaces
Program Details
Research: Understanding Stakeholder Needs
- Tenant & Employee Engagement: Found to be extremely low, especially regarding environmental satisfaction and well-being
- Investor & Property Manager Alignment: High urgency and openness to strategic capital improvements
- Turnover Drivers: Lack of flexibility, uninspired design, and commuting stress were core deterrents
Perception: Repositioning the Space
- Collaboration-First Layouts: The herringbone desk pattern encouraged spontaneous collaboration
- Balance of Privacy & Community: Alcove-like rooms provided retreat without isolation
- Workplace Wellness: Added greenery and garden features improved air quality and employee well-being
- Cultural Touchpoints: Art installations sparked creativity and elevated the atmosphere
- Narrative Strategy: Shifted building identity from “workspace” to “community hub with purpose”
Experience: Innovations That Delivered Results
- Daycare Facility Transformation:
- Entire floor converted into a licensed childcare center
- Became a major draw for tenants with young families
- Eased return-to-office friction by addressing a top pain point
- Dynamic Common Areas:
- Redesigned spaces encouraged casual interaction and social cohesion
- Created a “third space” feel—neither strictly office nor lounge
- Layered Collaboration Zones:
- 10+ small rooms for focus work, 7 mid-sized conference spaces, and 3 large-scale presentation rooms
- Interspersed alcoves for impromptu collaboration
- Flexibility in Commuting:
- Support for hybrid schedules and potential transit benefits improved accessibility
The Impact: A Model for Post-Pandemic Office Success
This transformation did more than boost numbers—it redefined what a workplace could be in the post-pandemic era. By focusing on flexibility, human connection, and family-first amenities, the investor turned an underperforming asset into a case study in modern office resilience.
With occupancy stabilized, revenue up, and tenants re-engaged, the asset is now positioned as a flagship example of how thoughtful design and stakeholder-centered strategy can future-proof commercial real estate.
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