CREJ - Property Management Quarterly - April 2016
As the nature of work evolves, so too must office suites. When planning a spec space for a vacant suite or floor, property managers must take these changes into consideration. One of the most important considerations is addressing higher densities in a smaller footprint. Another is the importance of health and well-being in the work environment. From this, there are two emerging trends worth noting: 1. Furnished space. When landlords provide furnished spaces, it is an attractive feature to younger start-up companies, which are abundant in Colorado. “There is a growing trend of early stage companies to co-locate in incubator-type spaces and as these tenants outgrow these spaces, they will need to find their own offices,” said Bill Baldwin, a Cresa tenant rep broker. “The capital cost for a company to move into a space is significant, and the more landlords can do to mitigate this upfront cost, the more successful they will be in attracting these tenants.” Furniture dealers and manufacturers are getting in on the trend and offering flexible economical solutions to property managers to furnish the suites, which presents a creative solution in budgeting and marketing the space, said Jim Graczyk, a principal at Box Studios. The term “furnkey” – a play off “turnkey” that implies fully furnished in addition to being built out – was trademarked by Cassidy Turley, now part of Cushman & Wakefield. 2. Tech space. A tech suite is a spec suite that has been enhanced through details to make it more tailored and cool, said Graczyk, whose firm specializes in tech spaces. “For young tech companies, this is what makes the office more appealing than your average spec suite,” he said. “These creative environments have an open plan mixed in with unique details that can be simply personalized to the incoming tenant’s brand, without necessarily a lot more money.” Originally, tech spec spaces usually were around 3,000 to 5,000 square feet. Now some tech suite projects range from 12,000 to 16,000 sf, he said. For the design aspect, tech companies want a functional open plan, flexible furniture, exposed ceilings and brand identity. Employees also like to work in environments that offer alternative workspaces, such as reception areas, comfortable lounges, communal meeting area and small private, quiet rooms, all of which should feature comfortable and hip furniture.