Conventional Office Leasing Could Change.
Written by Chris Shaheen, Development Specialist with Saurage Commercial Real Estate
In a world of ever changing markets and economies, the typical office lease landscape may see some changes. Due to the uncertainty of the future, businesses are going to look for more flexibility in their leases and less commitment. Think executive suites on steroids.
Executive suites provide a business owner the ability to move into a space that can be furnished and is ready to go. Executive suties are complete with a receptionist, conference room, copy and fax machines and many other amenities that can be tailored to the tenants specific needs, thereby reducing their staffing needs. It provides the business owner immediate credibility without the committment of signing long term leases. In fact, some are month to month. The tenant can downsize or upsize, as needed. It also allows a business to test a new market without the large capital outlay that would normally be required. Since Executive suites are full service leases, businesses only have to write one check every month which can help with budgeting. Tenants may end up spending more on a per square foot basis, but their long term risks are hedged.
Landlords will also need the ability to be flexible with their office space and may require more modular office space. This doesn’t mean that we still won’t see the traditional 3000 square foot, 3 – 5 year lease, but there will be more demand for the service type space for larger users and where there is a market, there is usually someone trying to satisfy it.
Chris Shaheen is a graduate of Louisiana State University where he obtained a Bachelor of Science in Business Management. Shaheen obtained the Louisiana Real Estate Sales License in 1995 where he began work as a consultant with Saurage Company Inc. as a specialist in development, land valuation, and financing.
Saurage Company, Inc dba Saurage Commercial Real Estate was founded in Baton Rouge in 1991 with the purpose of providing exceptional real estate services with an emphasis on commercial property and property management. Saurage Commercial Real Estate offers to its clients a full range of real estate services including brokerage, investment advising, development consulting, REO disposition specialists, asset management, fee based consulting, tenant representation, and buyer representation. The staff of professionals includes combined experience of 50 years, as well as CCIM Designees and Candidates and recipients of Master of Business Administration.
