OFFICE TENANT BEHAVIOR AND CASE STUDIES

Written by: Collin Fitzgerald & Stephanie Morris

Collin and Stephanie specialize in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. They are responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis and utilizing statistical information to predict future behavior in the market. Keep reading for their take on trends in office tenant behavior and case studies. 

The Trend: Amenitizing Assets to Attract Tenants

In the post-pandemic office market, landlords face a new challenge: helping tenants bring employees back to the office. As the hybrid work model diminishes, companies are prioritizing office environments that provide compelling reasons for in-person collaboration, productivity and engagement. In response, landlords of older assets are making substantial investments to compete with newly built, amenity-rich office spaces.

Landlords are transforming traditional office buildings into experience-driven workplaces by modernizing lobbies, upgrading common areas and introducing high-end features such as fitness centers, conference facilities and hospitality-inspired lounges. These efforts attract and retain tenants and align with the broader shift toward creating workplaces that foster culture, collaboration and convenience in an era where employee preferences are reshaping office demand.

CASE STUDY 1: Capitol Square

Group RMC acquired 65 E. State in 2020, shortly after the pandemic began. Since then, the owners and leasing team have transformed the 16th floor into a premier amenity space, investing $2.2 million to replace office space with high-end features. The newly renovated floor includes a state-of-the-art fitness center with a skyline view, a group fitness room, a golf simulator, a bar, soft seating areas and multiple gathering spaces. Tenants also have access to a 3,000+ SF high-tech conference center with flexible meeting spaces, optional breakout rooms, a kitchenette, an event space and a training room.

CASE STUDY 2: Fifth Third Center

In 2018, ValStone Partners acquired the historic 23-story Fifth Third Center in Columbus, Ohio, for $28 million. Facing a 15% occupancy rate, the firm secured a $24 million construction loan to revitalize the building. Renovations commenced in November 2021 and concluded in July 2022, introducing modern amenities such as a tenant lounge with a rooftop patio, a renovated lobby, a fitness center and a golf simulator.

These improvements aimed to enhance the building’s appeal in a competitive office market, providing an updated and attractive workspace to help attract tenants and improve retention. By integrating lifestyle-oriented features, ValStone strengthened the asset’s value, positioning it as a desirable destination for businesses seeking high-quality office space. CJ Schebil, asset manager with ValStone Partners, emphasized that these enhancements aimed to help employers better build value propositions for their employees. The upgrades reflect a broader trend of office landlords adapting to shifting workforce expectations, prioritizing amenities that foster engagement, collaboration and employee well-being.

The overarching goal of the Sky Lounge, the fitness center, and really the entirety of this project, is to help employers better build that value proposition to their employees.

-CJ Schebil

Valstone Partners

Columbus Business First

The Trend: Employers Call Employees Back to the Office

As more companies prioritize collaboration, productivity, company culture, and associate development, employees are required to return to the office full-time and hybrid schedules are diminishing. Major corporations such as Amazon, Goldman Sachs, JPMorgan Chase and Tesla have mandated full-time office attendance, while others, including Apple, Google and Meta, have adopted hybrid models requiring two to five in-office days per week. Many employers argue that in-person work strengthens teamwork, fosters innovation and supports long-term business goals.

The KPMG US CEO Outlook Report highlights a significant shift in corporate work expectations over the next three years. CEOs now anticipate that 79% of employees will work in-office, a dramatic rise from 34% earlier in 2024. Meanwhile, hybrid work is projected to decline from 46% to 17%, while fully remote work will remain minimal at 4%. This shift also affects the commercial real estate market, increasing demand for office space in some areas while prompting landlords to adapt workspaces to evolving corporate needs. As businesses navigate economic challenges, many view office returns as essential for maintaining efficiency and growth.

CASE STUDY 1: State of Ohio

The third-largest employer in Central Ohio is calling their employees back into the office, a move expected to impact downtown Columbus significantly. Governor Mike DeWine has issued an executive order mandating that all permanent employees of state agencies, boards and commissions under his authority return to in-office work five days a week. “As we are seeing the private sector now move more and more people back, it made sense to me to have a general rule that people would move back with exceptions,” Gov. DeWine said. Approximately 17,000 state employees in Franklin County will be affected by this directive.

Downtown Columbus is anticipated to experience increased economic activity as a result. Experts suggest higher office occupancy can lead to stabilized commercial real estate values, increased income tax revenues and more foot traffic benefiting local businesses such as restaurants and retail shops. Overall, the return of state employees is expected to bolster downtown Columbus’ economic vitality, supporting local businesses and contributing to the area’s ongoing revitalization efforts.

CASE STUDY 2: AEP

American Electric Power (AEP) is ending its hybrid work model and requiring employees to return to the office five days a week starting June 1, 2025. The change affects about 2,400 employees in Central Ohio across the company’s downtown, Gahanna and New Albany offices. AEP says the shift will support its $54 billion investment over the next five years to improve service and meet growing energy demand. A company spokesperson emphasized the benefits of in-person collaboration, stating that face-to-face interactions will help drive efficiency and innovation as AEP modernizes the energy system.

For more information on current office trends, check out our 2025 Columbus Office Tenant Report!

2025 Foresight Report