By Burns Scalo Real Estate

There is a talent war occurring for quality employees in our region that is not only exclusive to tech companies. Organizations across the board require a welcoming and engaging office space to hook fresh talented workers.

The buzz words such as “amenities,” “collaboration” and “agility” are a reality for commercial real estate in this tremendously competitive, cutting-edge world. The truth is, expansive cafes, fitness centers, open and flexible workspaces, plug & play technology, game areas, natural light, excellent air quality and high ceilings may end up increasing your office rent.

Another truth is CEOs in the decision-making chair may challenge the notion of paying these “extra” dollars for the new and improved office features, and they are thinking of rent in all the wrong ways. Here’s why: most business’s cost of rent is 5% to 7% of their total expenses, and payroll/payroll-related items are equal to 50% to 65% of total expenses. To gain the competitive advantage in a new and better workplace, decision-makers need to let go of the fractions of percentage points on rent because this minimal cost plays such a huge role in the recruiting and retention of their staff.

Burns Scalo Real Estate is a Pittsburgh-based full service commercial real estate organization that has full confidence in the new and improved office space and how it transforms a workplace. The company is currently developing The Riviera, a brand-new Class A office building situated on the riverfront. The six-story, 160,200 SF structure sits inside the Pittsburgh Technology Center along 2nd Ave and plans to open its doors Summer of 2019. With leasing interest contact sdiguglielmo@burnsscalo.com.