How Amenities Are Driving Office Leasing Prices

As fundamentals in the commercial real estate market continue to improve, institutional investors are now increasing their participation in the recovery, including in the office sector. And much of the leasing activity is concentrated at the top of the market, where the office has begun to function as a luxury good.

In a recent Chief Investment Officer (CIO) article, Varun Chari was quoted on the role improved amenities are playing in driving value for office leases.

“Approximately 80% of 2025 U.S. office leasing landed in Class A, and the owners winning that share are investing in experience managers, curated programming and reimagined amenity floors,” Chari says. “The hospitality shift and amenity focus belong in underwriting, because repositioning a building for that shift is increasingly the cost of remaining competitive.”

The focus on amenities has shifted office from a real estate product into a hospitality product. In addition to creating new opportunity for investors, this trend requires careful consideration during the lease negotiation phase for both landlords and tenants.

Read the full CIO article here.

Looking to understand the role office building amenities will play in an upcoming investment or lease? Reach out to Varun Chari or another member of LP’s Real Estate Group.