Offices are increasingly vacant. According to Moody’s Q2 2024 CRE trend report, office vacancy rates have exceeded 20% this year as businesses reduce their space or leave the office entirely, driven by the continued demand for hybrid work. In response, building owners and facility leaders are under increased pressure to offer enhanced amenities, to help tenants attract employees back to the office and stand out in an increasingly competitive market. The space made available by downsizing tenants presents a prime opportunity for building owners to rethink their offerings, positioning their properties as more than just office buildings but as complete neighborhoods at one address.
Nahla Capital contracted us at architectural and design firm FCA to repurpose giveback space from our recently renovated headquarters at 2000 Market (2000MKT), a 29-story Class A office building in the heart of Center City Philadelphia. The project highlights how strategic office-to-amenity conversions can reshape commercial real estate, and how this initiative allowed us to bring the kind of amenities our clients seek to our own building.
After reducing our office footprint, we collaborated with the building owner to transform the remaining space into shared amenities for all tenants. The renovation features a 5,000-square-foot conference/amenity space on the sixth floor and a modern fitness center with an exterior pickleball courtyard in the lower level, offering enhanced experiences that benefit the entire building.
Key Considerations
Today’s office tenants seek comfort and convenience, as it’s something we all grew fond of working from home during the height of the pandemic. Beyond proximity to public transportation, employees value offices that are close to food and beverage options and other services such as fitness centers and child care. By offering these amenities within the building, owners and facility leaders can offer a level of convenience that saves tenants time and effort—a precious commodity in today’s fast-paced world. Offering these conveniences in the same building allows tenants to save time during their workday, which can translate into higher employee satisfaction and retention.
Cafés and lounges, in particular, provide employees with the option to grab a bite to eat without needing to leave the building. The sixth-floor lounge at 2000MKT provides employees with a casual space to unwind, grab a coffee, or meet with colleagues. The space is also designed to accommodate catering services for client entertainment and conferences, and features cold brew coffee available throughout the day. For more substantial dining options, Coventry Deli on the ground floor offers a convenient alternative.
With various seating options, the lounge serves as a versatile area for work, socialization, or relaxation. This casual setting naturally fosters conversation and collaboration within the work environment and gives employees more flexibility in how they use the workplace throughout the day.
Throughout the planning and design process, the design team must collaborate with facility leaders and existing tenants to evaluate the current offerings and needs of the building. These conversations can help uncover which amenities are most valuable for their particular environment and which are most worth investing in.
Flexible, Multipurpose Design
The shifting hybrid work landscape has caused business leaders and designers to re-evaluate the way we see workplace design. With many employees now accustomed to the comfort of working from home, it’s crucial to offer flexible in-office environments. To meet this need, amenity spaces should include adaptable rooms and multipurpose furniture. Common areas might feature movable seating, allowing for small-group collaboration or quiet work sessions.
Conference rooms are also evolving to include configurable layouts that can accommodate both large-scale events and smaller team meetings. For example, the 2000MKT renovation features a large conference space that can be partitioned for various uses. Previously located in the basement of the building, the conference center was moved to the sixth floor to provide both easier access and beautiful city views. To better service the needs of various tenants, the space can be divided into two rooms that allow businesses to host a variety of events from large meetings to small group collaborations. Having access to this space offers an excellent solution for businesses that cannot accommodate meetings of this size in their own offices.
Private meeting rooms are another important feature, enabling employees to participate in virtual meetings or handle sensitive conversations without disruption. A smaller meeting room with adjustable curtains can similarly offer separation for privacy. These spaces also cater to the hybrid work model, ensuring employees work collaboratively regardless of whether they are in the office or working remotely.
Beyond the floor plan itself, multipurpose furnishings are important to consider for optimal comfort and flexibility. Multiple seating arrangements such as cushioned chairs, tables, and private meeting rooms allow staff to choose where and how they’d like to work throughout each day. Employees have the option of sitting in a lounge chair or using a height-adjustable table. This not only enhances physical health and concentration but also promotes greater inclusivity.
Underscoring the Importance of Health and Wellness
As businesses increasingly prioritize employee health and wellness, fitness centers and outdoor activity areas are becoming more common in commercial buildings. By incorporating wellness-focused amenities, building owners and facility leaders can show their commitment to tenant well-being, further supporting the attractive ethos set by many business owners.
On the lower level of 2000MKT, we converted the former conference room into a state-of-the-art fitness center, offering modern equipment and convenient options for physical activity. Directly outside, the previously underutilized courtyard has been converted into a versatile outdoor space, featuring a pickleball court and areas for outdoor fitness classes like yoga. A custom mural integrates art into the building for tenants, while drawing additional interest to the court from street level.
Outdoor spaces like these further enhance the value of a property. They allow companies to host fitness activities, provide fresh-air breaks, and even serve as additional gathering spaces for tenants and guests. Beyond physical fitness, the focus on wellness can extend to creating spaces that support mental and emotional well-being. Flexible relaxation zones within these amenity areas can include comfortable seating arrangements, quiet rooms for focused work or relaxation, and dedicated meditation areas. By offering these varied spaces, building owners and facility leaders can cater to the diverse needs of tenants, promoting a balanced work-life experience and contributing to a more fulfilling and productive workplace environment.
The new meeting spaces and amenities at 2000MKT are already in high demand, with bookings consistently filled month-to-month. This success highlights the appeal of thoughtfully designed amenity spaces and underscores the team’s efforts in creating an attractive and functional work environment. This project serves as a model for how architectural design can address the evolving challenges of the commercial real estate market. As this trend continues to evolve, office-to-amenity conversion projects will likely play a central role in the future of workplace design, offering a valuable solution for employers and building owners alike to meet modern employee and tenant needs.
Tiffany Hughes, NCIDQ, LEED ID+C, is a senior associate and senior project interior designer at FCA.