Guest Post by Rob Naso, Managing Partner and Head of U.S. Asset Management at BGO

Office leasing has always been cyclical, but the post-pandemic environment is creating fresh opportunities for forward-thinking owners and investors. The “flight to quality” is reshaping demand and valuations: tenants are consolidating into smaller, more efficient, and higher-quality footprints. This is driving momentum in Class A and trophy assets while leaving commodity space behind. For institutional owners, success means more than filling square footage – it means ensuring that the office on offer remains a destination of choice in a hybrid world.

Rather than relying solely on return-to-office (RTO) mandates, the focus is shifting to workplaces that inspire employees to choose the office. For tenants, that means delivering an engaging, frictionless experience that enhances productivity and culture. For owners, it means reimagining underutilized space, positioning assets more competitively, and capturing demand in a market where adaptability and innovation define value.

RTO Strategies Beyond the Four Walls

A growing number of institutional owners are stepping beyond the role of landlord to act as strategic partners in their tenants’ workplace strategies. From investing in amenity upgrades to offering flexible space and engagement programs, landlords are rethinking their value proposition. The goal isn’t simply occupancy; it is helping tenants strengthen culture, foster collaboration, and turn office time into a competitive advantage.

That requires thinking beyond the four walls of the office. Lifestyle amenities – hospitality, retail, and residential – now play a crucial role in creating seamless, productive, and enjoyable workdays.

Our answer to this shift is RTO by BGO, a nationwide incentives program giving office tenants access to perks across BGO’s U.S. portfolio. By unlocking hospitality, multifamily, and retail assets, BGO is using its scale to creatively differentiate its office buildings by helping tenants bring their employees back to the office – and to create new sources of value that extend far beyond a single building.

A Shift in Employee Expectations

Employee expectations have outgrown the breakroom. Coffee bars and open seating once carried weight; today’s workforce seeks thoughtful design, wellness-focused amenities, and opportunities to connect in and beyond the workplace.

Leasing trends reflect this evolution. According to JLL’s 2024 Building Amenities Outlook, 77% of all leasing activity in New York City this year occurred in office buildings with at least one amenity. The line between office and hospitality continues to blur, with wellness rooms, reservable meeting suites, and curated event spaces increasingly standard.

Our company is leaning into this by activating shared spaces with experiences – from sustainability initiatives like rooftop farms and beehives, to curated art exhibitions and comedy hours. Tenants can also host their own events with exclusive catering deals from BGO-affiliated restaurants, creating opportunities for culture-building and community.

Portfolios with Purpose

A key trend is the rise of the “portfolio experience” – unlocking value across multiple properties and asset types rather than focusing on a single building.

Through RTO by BGO, tenants receive:

• Access to amenity centers nationwide
• Annual credits toward affiliated hotels and restaurants
• Rent incentives for employees in BGO residential communities

This approach delivers a frictionless experience whether employees are collaborating locally, traveling between cities, or hosting clients. It functions almost like a hospitality loyalty program – yet it represents something broader: landlords leveraging scale and diversification to deliver workplace value across more touchpoints.

Empowering Small and Mid-Size Tenants

Cross-portfolio perks aren’t just for enterprise tenants. For small and mid-size businesses, they can be transformative. Access to shared amenity spaces, lifestyle perks, and larger conference rooms – often unavailable in smaller footprints – helps these companies attract talent, encourage consistent office use, and scale into new markets without sacrificing employee experience. The offering enables smaller tenants the ability to leverage opportunities previously afforded only to much larger tenants.

Supporting the Surrounding Ecosystem

Office occupancy is also critical to the health of downtown economies. By linking office engagement with local retailers, hotels, and cultural institutions, landlords can help revitalize central business districts.

Our approach includes offering office tenants who move into BGO Residential Communities rent credits and waived amenity fees – strengthening the live-work-play ecosystem and reinforcing the role of the office as an anchor in urban life.

Where the Trend Is Heading

As hybrid work clarity continues to mature, the focus has shifted from capacity planning to maximizing experience and productivity. Landlords that can deliver flexible, hospitality-infused, cross-portfolio experiences will stand apart in a selective market.

The winners won’t simply lease space; they’ll create ecosystems of value that extend beyond the office – reshaping how tenants, employees, and communities experience the built environment.

Rob Naso is Managing Partner and Head of U.S. Asset Management at BGO