Property owners here in Orange County and elsewhere who intend to rent out space in their buildings may think that leaving the space open for improvements would be the best option. While that may work for certain industries, when it comes to office space, that is not always the right option. A landlord may find that a prospective commercial tenant would prefer a more turnkey property.
When it comes to office space, potential tenants often either cannot or do not want to wait for a build-out to be complete. Rental spaces that are already built, called spec suites, tend to take much less time to rent than those requiring tenant improvements. It can take anywhere from 12 to 36 months to find a tenant for an office space that requires improvements. That time could be shortened to as little as six months for a space that is already built.
These are the results of one study conducted on the suburban areas of Chicago, but the information could prove useful for property owners here in Orange County as well. Even though the rents may be higher on turnkey rental spaces, but tenants who want a space quickly are often willing to pay. For this reason, researching the habits of renters wanting office space in the area in which a property is located could prove invaluable.
Investors and developers who want to own office buildings would certainly benefit from doing this type of research when it comes to finding the right commercial tenant for the area. These developments could be lucrative with the right planning. If tenants want spec suites, then it would certainly be worth the initial outlay of funds to make sure they are available for rent.