It’s happening — companies are doing all they can to get employees back to the office! But at the same time they understand that hybrid work and downsizing is here to stay…or is it? This is a scary unknown for business owners, so how do they hedge their bets? Enter the “Spec Suite.” Over the last 18 months, spec suites have become both Landlords’ and Tenants’ best friends. Here are the main benefits of spec suites for both Landlords and Tenants:
Landlords:
- Control over design and finishes
- Quicker lease-up time frame.
- Higher initial expense BUT cheaper to clean up and re-tenant after initial lease up
Tenants:
- Term Flexibility – Landlords will do shorter term deals (3 years) in spec suites, allowing Tenants to try the hybrid work experiment without committing to 7-10 year leases.
- Time Savings – Most Tenants NEED SPACE NOW and don’t have the 8-12 months needed in today’s market to design and construct a space
- No construction cost overage exposure – If Tenants go over their Tenant Improvement Allowance to build their space, that is a financial hit a lot of them are not expecting.
However, the above is only half the battle. Not all spec suites are created equal. To help you understand the difference we have created a checklist to help you determine if a spec suite is true best in class or yesterday’s standard spec. Standard spec suites have gone the way of the Packard.
We have extensive experience with this type of space. If you want to talk about the coolest spec suites in your market, give us a call.
Gregg
gkafka@leearizona.com
602.954.3777
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