In last week’s FunnelCast, I wrote about One Meadowlands Plaza in East Rutherford and their top-of-the-market amenity package. Since imitation is the sincerest form of flattery, other buildings in the market and throughout the state are following suit with similar amenities.
One of the most talked about amenities is shuttle service. Statistics will show that buildings and submarkets with immediate access to rail outperform those without. While landlords can’t pick up their buildings and move them next to train stations, they can provide free access to the train, as well as other area amenities, similar to One Meadowlands.
Their shuttle was initiated when a large tenant was considering a move from Jersey City to the Meadowlands and didn’t want to force their employees who used public transportation to drive to work. In addition to a continuous loop to and from Secaucus Junction during commuting hours, they also offer tenants rides to the airport and other local destinations throughout the day.
Park Avenue at Morris County, located in Florham Park, also has a shuttle service which stops at the Madison Train Station, the Short Hills Mall, Downtown Morristown, and more. Just this week, shuttle service commenced in Ridgefield Park for the tenants located at 55, 65, 85, and 100 Challenger Road providing access to Secaucus Junction.
One of the key drivers behind the shuttle service is the labor pool represented by the Millennial Workforce. By 2020, they will make up roughly 50% of the overall workforce. If their preference remains to live in urban areas and utilize public transportation, we will see a greater demand for shuttle service.
In a large building or office park, it is not cost prohibitive and is included in the building’s operating expenses. What I don’t think we will see is competing landlords sharing the cost of a common shuttle.
What are your thoughts on shuttle service? Are there other amenities you see as being key to attracting the millennial workforce?