The commercial real estate sector must adjust to a trend in which corporate tenants increasingly see buildings as tools to recruit and retain talent and boost workforce productivity, panelists said at the ULI Spring Meeting in Nashville. Real estate developers need to focus on designing innovative, customized spaces and offering amenities that help their tenants meet their strategic goals concerning human capital.

Rich Monopoli, senior vice president for development for Boston Properties, noted that things have changed since the days when companies chose locations based on factors such as proximity to the chief executive’s home or keeping costs as low as possible. Instead, they now see well-designed, environmentally sustainable office spaces as a branding opportunity. In addition, companies are looking for space that will facilitate collaboration and create an ambiance that will help them attract, develop, and maintain talent, he said.

To deliver a product that meets such expectations, developers need to rethink their relationship with their tenants and do extensive research, Monopoli said. Boston Properties began to shift its approach during the last economic downturn in the late 2000s when the lack of activity gave the company time to reflect, he said. “We spent a lot of time trying to become a client-focused company,” he said. “We really wanted to understand how our clients were using our space—what are they doing there, how they are using our space to advance their business goals.”

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