The Flight to Quality: How Tenant Preferences Are Shaping Office and Industrial Markets

By Brian Wallace, Broker | York Properties, Inc.

___________________________________________________________________________________________________________________________

The commercial real estate landscape continues to shift, and one trend has risen to the top: the flight to quality. Across both office and industrial sectors, tenants are gravitating toward modern, amenity-rich, and sustainable properties. This evolving preference is influencing leasing activity, fueling renovations, and reshaping investment strategies.

What Is the “Flight to Quality”?

“Flight to quality” refers to the growing tenant demand for newer, well-located spaces that offer top-tier amenities and sustainability features. In the post-pandemic era—and amid economic uncertainty—companies are prioritizing environments that promote employee well-being, productivity, and long-term efficiency.

Hallmarks of high-quality properties include:

• Modern construction or recently completed renovations
• Flexible, open layouts that support hybrid work
• Advanced HVAC and air purification systems
• High-speed internet and smart building infrastructure
• On-site amenities such as fitness centers, lounges, and green spaces
• Sustainability certifications like LEED, WELL, or ENERGY STAR

Office Market: Smaller Footprints, Higher Expectations

While remote and hybrid work models remain the norm, companies are increasingly intentional about the office spaces they do lease. Many are reducing their square footage but elevating quality to entice employees back on-site.

Top office tenant priorities:

• Touchless entry, smart access, and integrated tech
• Natural light, biophilic design, and wellness rooms
• Collaborative workspaces and designated quiet zones
• Proximity to public transit, restaurants, and retail

Class A office buildings with robust amenities, upgraded systems, and strategic locations are outperforming outdated properties that lack these features.

Industrial Market: Smart, Sustainable, and Scalable

Demand for industrial real estate remains strong, particularly in last-mile logistics and advanced manufacturing. But tenants aren’t just seeking space—they’re seeking functionality and sustainability.

In-demand industrial features include:

• High clear heights and flexible loading dock configurations
• LED lighting and energy-efficient HVAC systems
• Solar energy integration and EV charging stations
• Advanced security systems and smart warehouse technology

For industrial users, operational efficiency and ESG alignment are just as important as square footage.

What This Means for Landlords and Investors

As tenant expectations evolve, landlords and investors must pivot accordingly. Staying competitive means focusing on:

1. Property Upgrades: Modernize interiors, enhance building systems, and invest in smart technology. Even small updates—like common area refreshes or EV chargers—can make a big impact.
2. Sustainability: Energy efficiency and green certifications are no longer optional for many tenants. Consider pursuing LEED, WELL, or other sustainability standards to appeal to forward-thinking occupiers.
3. Flexibility: Adaptable layouts are key. Whether it’s modular office configurations or convertible warehouse setups, flexible design helps future-proof your assets.
4. Amenities That Matter: From wellness spaces and outdoor work areas in offices to enhanced breakrooms and secure access in industrial buildings—thoughtful amenities attract and retain quality tenants.

The York Properties Advantage

At York Properties, we understand what today’s tenants are looking for—and how to position properties to meet those expectations. Whether you’re leasing office space, managing an industrial asset, or planning capital improvements, our team can help you stay ahead of the curve.

Let’s future-proof your portfolio.
Contact your York Properties team today to explore how we can help you attract and retain high-quality tenants in 2025 and beyond.

📞 919-645-2773
✉️ [email protected]
🌐 www.yorkproperties.com

Sources:

https://www.forbes.com/sites/jeffsteele/2024/12/26/commercial-real-estate-trends-to-watch-for-in-2025/

https://www.ccim.com/real-estate-insights/blog/commercial-real-estate-2025-hurdles-and-horizons

https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025