Attend concerts and puppy days, pickleball courts, golf simulators and mini golf.

“I’ve heard brokers talk about a nuclear arms race when it comes to office space amenities,” said Adam Duininck, CEO of the Minneapolis Downtown Council.

Two weeks ago, Hempel Real Estate CEO Josh Krsnak and his investors invested $300,000 to install a pickleball court, sauna and cold-water pool at LaSalle Plaza. In September, they will add free golf simulators, free transportation for downtown workers and free parking for all workers in the building.

The price is $5 million, Krsnak said.

“We say, ‘Come back to the office.’ You know? ‘Spend time with your colleagues.’ We believe people are more productive when they’re together, so we’re trying to make people want to come back,” he said.

It’s important for landlords that more workers get used to commuting. According to real estate services firm Cushman & Wakefield, the vacancy rate in the second quarter rose to a painful 33 percent in Minneapolis’s central business district and 27 percent in downtown St. Paul.

Landlords and employers are therefore looking at surveys. It shows that in the past, a gym and fitness classes were enough, but today employees and tenants also want green spaces, says Duininck. They also want cheaper lunch options, which could influence some decisions in the fall.

“We’re in the thick of things with our clients in the Twin Cities,” says Brent Karkula, managing director of Twin Cities agency leasing for JLL, which oversees downtown giants like the IDS Tower and Baker Center, the Carlson Towers in Minnetonka and 10 West End in St. Louis Park.

Clients say, “Your job is to create an environment that tenants want to be in. And they want those amenities to lure their employees back,” Karkula said. As for the pile-on of freebies for office workers, “I see that every day. And I don’t see that changing anytime soon. Everyone (companies) are constantly trying to outdo each other.”

Last month, excavators dug up the manicured lawn at the SPS Tower in Minneapolis to create a beautifully maintained miniature golf course, complete with curvy rock formations, holes, flags and clubs.

A few blocks away, advertising agency Carmichael Lynch transformed the award-winning view of Target Field into a flower-strewn barbecue and rock band concert hall for employees.

At 901 Marquette, the tenant coordinator for Ryan Companies brought in 8-week-old Chihuahua puppies to lure employees off the couch and into the office.

“Puppies? That’s an incredible idea,” Krsnak said at Lasalle Plaza. “I’m definitely going to steal that idea.”

Lisa Pool, head of the architecture firm Perkins & Will, sees that the race for public amenities is in full swing. And not just in Minnesota.

In Dallas, a financial firm converted one and a half floors into a speakeasy, a golf simulator and a putting green, she said.

“We have also done projects with golf simulators and ski simulators,” Pool said, and have designed lounges, salons and studio (film) rooms for clients.

A single golf simulator can cost between $4,000 and $16,000. But that isn’t slowing down Minnesota companies.

A golf simulator was recently installed at Waterford Park in Plymouth, and bids are being sought for a golf simulator and pickleball court at South Point Office Park in Bloomington.

Landlords such as the Metropoint Tower in St. Louis Park and the 3701 Wayzata Blvd building in Minneapolis have already spent thousands to install a golf simulation video game in conference rooms.

“People have been working from home for a number of years and are now looking for a workspace that offers either the same amenities as home” or luxurious amenities that were once only a dream, says David Little, workplace director at HGA Architects.

The cost of setting up chic rooftop decks, speakeasies, pickleball courts, putting greens, kitchens, common areas and more can range from $500,000 to $10 million, he said.

“It’s certainly not a small feat,” said JLL’s Karkula. “Creating a space like this is a big financial commitment.”

As exhibit number one, Karkula offers the 7500 Flying Cloud Drive in Eden Prairie.

The 1987 building was renovated in 2017, but since then, Hershey’s, Procter & Gamble and Nestlé have moved out. Hoping to stem the exodus and attract new tenants, the owners renovated the building again, this time adding a golf, soccer and baseball simulator, a shuffleboard court, a bar and lockable refrigerators.

“The owner was smart enough to know that a renovation that was just OK in 2017 would not be good enough for the tenants in 2024,” Karkula said.

The Braemar Office Complex in Edina has also pulled out all the stops with a new putting green, a bocce ball court and a massive bar made from shipping containers called “The Box,” which has beer taps and seating for the building’s employees.

The building owners now host weekly happy hours with live music.

“And they just signed a deal to build a pickleball court,” Karkula said. “Every tenant there right now is really looking for something new and fresh that says to their employees, ‘We’re going to invest in you because we want you to be happy and work with other employees.'”

But even if office complexes don’t have the money or haven’t yet added new amenities, they are increasing their entertainment efforts.

That’s where puppy days come in, like one that took place on a recent Wednesday at 901 Marquette in downtown Minneapolis.

“I’m the happy guy. I bring the fun,” said Patrick Bemmels, tenant coordinator for Ryan Companies, as he watched tenants from Thrivent Investments, law firm Dewitt and billboard advertising company Out Front Media stream into the lobby.

In one corner, a puppy fell asleep on a worker’s chest. In another corner, a puppy had an accident on someone’s shirt. A third puppy chewed on someone’s notepad.

“They always come up with something in this building,” chuckled Dewitt’s lawyer Paul Quast as he was kissed by a puppy barely bigger than his hand.

Bemmels first asked Bond Between Animal Rescue to get puppies for “puppy yoga” in the spring. Those two classes drew 80 employees, so Bemmels decided to try again—this time without yoga.

Such events have helped, said Bemmels, who started on the job in 2021 when COVID was still raging. Trying to bring workers back downtown “has definitely been slow.” The events have sped up their return and filled corridors that were once painfully empty.

Last month, about 300 workers came for ice cream. Dozens came for a drawing for tickets to see the Vikings. About 150 workers returned this spring to get free honey from bees that a beekeeper keeps for a fee on the 33rd floor roof.

“I’m still working in hybrid mode, but on days like today I give 100%,” said Susan Gustafson, an employee at Thrivent Investment.

Bemmels said he has a “healthy budget” for events, but it is less than $50,000 a year.

Animals actually seem to act like a magnet.

Both Kraus Anderson Construction and JLL used llamas to lure their workers back.

“I don’t have a great desire to pet a llama. But you wouldn’t believe how excited people are,” Karkula said. “People are really excited.”

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