Key points
Occupiers move up
Demand is concentrating in the best, most experience-rich buildings.
Differentiation is priced
JLL links rent premiums to the quality and differentiation of amenities.
Experience counts
The everyday experience of a building is part of what occupiers pay for.
Why occupiers pay for the best buildings
Flight to quality describes occupiers moving to better buildings when they relocate or renew. As companies use offices to attract staff and impress clients, they increasingly choose buildings that offer a better experience, not just more space.
Highly amenitised US Class A buildings leased about 23.5 million sq ft more than they vacated since 2020, while other top-tier buildings lost more than 50 million sq ft, as reported by CoStar. JLL research reported by Bisnow found differentiated amenities carried higher rent premiums than basic ones, and that quality and differentiation drive the premium.
Where scent fits
Scent is not measured in these studies, and we make no claim of a scent premium. What the research shows is that quality and differentiation of the experience are priced. A signature scent is a differentiated, premium element of the arrival experience. A catalogue scent is not.
What flight to quality means for owners
Experience has become part of the product. Applied through scenting for REITs and landlords and portfolio scenting.
Occupiers compare experience, not just specification
Differentiated amenities support rent premiums
Generic amenities are easily matched by competitors
Arrival experience shapes every viewing
Applying it to your building
A practical way to think about experience.
Audit the experience
Walk the arrival journey as a prospective tenant would.
Remove what reads down
Generic or functional details undermine the building’s grade.
Add what differentiates
Specify elements competitors cannot easily copy, such as a signature scent.
Frequently asked questions
1. What is flight to quality?
The trend of occupiers moving to higher-quality buildings with better amenities and experience.
2. Is this happening in Singapore?
Singapore’s office market has seen demand concentrate in newer and higher-quality buildings. Your leasing agents can advise on your submarket.
3. Does scent create a rent premium?
We do not claim it does. The research links premiums to differentiated quality; scent is one way to differentiate the experience.
4. Why is differentiation important?
Amenities every building offers do not set a building apart. Distinctive ones do.
5. How does this connect to value?
Rent and occupancy drive NOI, and NOI divided by the cap rate gives capital value.
6. Where can I read more?
Get started
Differentiate the arrival experience
Request a site assessment and see how a signature scent sets your building apart.