Browse Tag: office building

Commercial Real Estate National News Roundup For July 7, 2015

REITs cautious because of possible interest rate hikes, offices surge in some secondary markets, good news and bad news about Atlanta’s CRE, industrial property will be hot for the rest of 2015.  It’s all here at the Commercial Real Estate national news roundup for June 22, 2015.

General

Office

 

Industrial

 

Retail

 

Multifamily

Humor From McSweeney’s: Let’s Take This Open Floor Plan to the Next Level

There’s something of a trend war going on today in office layout. Tenants of course want the most from their expensive space, but what does “most” really mean?  Before the rise of the Silicon Valley-style open floor plan layout craze inspired by Google and the like, getting the most from office square footage meant cramming as many cubicles as possible near traditional conference rooms and corner offices with doors.

But cubicles are no longer vogue and doors are often enough seen as hindrances to “collaboration”.  Some workflows in some industries do benefit from a layout that encourages semi-random encounters between teams, but others — perhaps those not quite as high-tech — suffer. In a digitally-enabled world where even law offices are rethinking what it means to have floor space — and taking up less of it with giant law libraries of “dead tree” (paper) — to where do all these rethink sessions point?

I’m pretty sure it’s not in this direction…thankfully!.  Enjoy this satire of an announcement memo from an office re-layout project gone awry, courtesy of Kelsey Rexroat at upscale humor site McSweeney’s. NOTE: Don’t drink coffee while reading. It’s funny enough that you might accidentally spew on your monitor.

  • You will no longer have access to instant messaging, which leads to private, non-collaborative conversations. If you need to communicate with another employee without leaving your workstation, stand up and address them with your supplied megaphone.

Read the whole thing at McSweeney’s Internet Tendency: Let’s Take This Open Floor Plan to the Next Level..

Commercial Real Estate News Roundup for May 26, 2015

A commercial office/retail building.
A commercial office/retail building. (Photo credit: Wikipedia)

 

Commercial continues on the mend, Asian auction markets heat up online, retail development up in secondary and tertiary markets and iconic apartments sell for record prices in East Los Angeles. It’s all here at the Commercial Real Estate new Roundup for May 26, 2015.

General

Office

the largest sale-leaseback transaction in suburban NJ history, Verizon will lease back the entire facility from Mesirow for a 20-year term.Read more at: https://www.bisnow.com/new-york/news/commercial-real-estate/cushman–wakefield-closes-6503m-deal-on-verizon-campus-in-basking-ridge-46064?utm_source=CopyShare&utm_medium=Brows
largest sale-leaseback transaction in suburban NJ history, Verizon will lease back the entire facility from Mesirow for a 20-year term.Read more at: https://www.bisnow.com/new-york/news/commercial-real-estate/cushman–wakefield-closes-6503m-deal-on-verizon-campus-in-basking-ridge-46064?utm_source=CopyShare&utm_medium=Browser
largest sale-leaseback transaction in suburban NJ history, Verizon will lease back the entire facility from Mesirow for a 20-year term.Read more at: https://www.bisnow.com/new-york/news/commercial-real-estate/cushman–wakefield-closes-6503m-deal-on-verizon-campus-in-basking-ridge-46064?utm_source=CopyShare&utm_medium=Browser

 

Industrial

Retail

Multifamily

 

Office Space Classes: How Do You Know What Class Your Property Is?

Class A?  Class B?  When it comes to office space, what’s the difference?

Turns out it’s pretty informal, inconsistent, and has more to do with market reporting than characterizing individual properties.  It’s an old problem in real estate information handling: when you’re describing a single property, you aren’t describing a wider area, trend or factor.  It also holds in the reverse: information about markets by its nature depends on summaries, means and averages when being put together; these summaries don’t often work well as ways to differentiate properties.

That said, office buildings are generally classified by brokers and landlords as being either a Class A, Class B, or a Class C buildings. But differences between each of these classifications varies widely by market.  Class B and C buildings are generally classified relative to Class A buildings, meaning that comparing across markets using these categorizations can lead to dangerous misinformation.

While the industry lacks a definitive formula for classifying a building, we get by (or don’t get by) on three sets of  general property characteristics:

  • Class A. The highest quality buildings in their market. Generally they look the best, use the best construction, their infrastructure is high quality and are professionally managed.   Location and access is premium.  Class A office buildings attract the top quality tenants and the highest rents that go with them.
  • Class B. Typically a Class B property is older than a Class A, yet still has quality management and tenants.  One aspect the distinguishes a Class B from a Class C is its “upward mobility”.  Does the building’s location and circumstance allow the possibility of restoration to Class A status through common area improvement, renovation or facade?  If yes, then it’s a solidly Class B office property.
  • Class C. Usually older than 20 years, a Class C office property needs extensive renovation and/or is located in a less desirable location.  Marked by out-dated technologies and infrastructure, and low architectural appeal,  Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities.

No formal international standards exist for office building classification, which is another way of saying that office buildings should be viewed in context and relative to other buildings within the sub-market; a Class A building in one market may not be a Class A building in another.

 

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