Before you decide that Class A office space is beyond your budget, take a moment to explore Class A buildings’ second-generation space. When leasing second-generation space or space that has had a prior tenant, your tenant improvement dollars can go much farther because you may be able to reuse some walls, doors, ceiling treatments, and light fixtures.
Finding second-generation space that has high-end finishes can be a huge benefit to your organization’s tenant improvement budget as the only places money would then have to be spent on is getting a professional locksmith from New Westminster to install high-security locks, on a few pieces of new furniture and showpieces to make the place look better. Ed Farrell, an Associate at Nemschick Silverman Architects P.C., provided his thoughts on second-generation space. “When a company is looking to move into a formerly occupied (or second generation) office suite, the framework is there for that user to take over with minimum resources. Whether simple, cosmetic upgrades or minor office configuration changes are called for, the infrastructure is already in place; making the process a simple endeavor, saving both time and expense.
When we work through a design with a tenant, we find companies stepping-up to a Class A office building often take advantage of common meeting rooms and conference centers that they may otherwise only occasionally need. This means that they don’t have to incorporate such spaces into their office suite, saving additional costs on their lease. We also find that tenants take advantage of lower cost building storage, which can be another space and cost saving feature for the tenant. Meanwhile, their staff enjoys the extra amenities that typically come with these buildings, such as an on-site cafe, exercise space, and building security.”
Ray Ruiz Executive Vice President JLL Long Island, said, “In order to preserve capital, companies should not overlook the cost to improve and construct vacant space. If a company locates a vacant space with high end finished offices, they can use money saved on improvements to invest in other business initiatives.”
While looking for new offices, pay close attention to companies in a similar industry or service sector that vacates a space in buildings you might like to occupy. Sandra Eavens, Vice President of TRITEC Asset Management, cited a specific example, “We recently had a tenant leave the sixth floor of 100 Motor Parkway. The tenant was in the financial services industry on the top floor of a building rated by Long Island Business News as one of Long Island’s top 10 office addresses. The space is beautiful with improvements that cost well over $100 a square foot. Any professional service firm that is looking to make a statement in the Hauppauge market should visit the space.”
Ultimately, if you are looking for a new location for your business, previously occupied spaces may provide you with the right cost savings to put your company in the address you desire.