How is office leasing going for small buildings?

What have you least out in the last 6mths?
Tenants looking for small space 250 sqft.? 500 sq ft. or larger?
Trying to decide if I should split up a larger unit for 3 smaller spaces.
In Leasing Property - Asked by Alicia B C. - May 24, 2012
Report Abuse
Answer this Question

Answer(s)

James B.
Broker/Agent
Allentown, PA

Alicia...what part of the U.S. are you in? Smaller units are typically "more leasable" however the construction costs associated may outweigh the benefit. I would do a pro forma and try to decide if it makes more sense splitting the spaces or reducing the rent on the larger space to induce a Tenant prospect.

May 24, 2012
Report Abuse
Gail A.
Listing Administrator
San Francisco, CA

I have found it much easier to lease small units at a better price per square foot than larger units. It all depends upon your marketplace

May 24, 2012
Report Abuse
Chris R.
Broker/Agent
Denton, TX

You may want to market the property as 250 SF to 2,500 SF. Then - if you get a 2,500 SF tenant - you are done. If you get a tenant wanting 1,000 SF - then lease that and you have 1,500 SF left over. You would have to survey your market and know the prevailing demand. Before you go chopping up a 2,500 SF space into several smaller ones - weigh the cost to do that vs. demand potential.

Jun 1, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question