Driven by the evolving business landscape and those looking to revive commercial leasing, prebuilt offices look dramatically different than they did pre-pandemic, attracting both building owners and their corporate tenants alike.
These more refined, specialized digs are no longer leftovers — in some buildings, they’re the main feature. With expedited project schedules, shorter lease terms, and inflationary pricing pressures, rolling out a prebuilt office program is not as simple as it sounds.
What exactly makes prebuilt office space an attractive solution?
In buildings with limited or dated existing office spaces, prebuilts provide building ownership with a move-in ready show space to demonstrate the possibilities and ‘wow factor’ that a prospective company is seeking in their next office space. From the corporate tenant’s perspective, being able to walk through the completed space before moving in allows them the immediacy of seeing the finished product without a time-consuming design and build process.
Often evolving from a prebuilt office space program is a turnkey offering, where building ownership essentially builds a prebuilt office for a specific corporate tenant. Where this differs, however, is in the level of customization, while still delivering the space on time and on budget. Offering customization within a framework makes the turnkey project model a compelling choice for corporate tenants who have specialized needs beyond the ‘building standard’. Both the prebuilt office and turnkey office programs require detailed planning to implement and deliver consistently.
Developing a Strategy
After deciding to implement a prebuilt office program, a strategy has to be developed to understand the potential office space customer and their typical space needs. With the design team, the ownership and leasing teams should hold a visioning session to establish how the building is positioned in the local real estate market, how they see the market within their building, and the types of corporate tenants attracted to the neighborhood and building. Lease duration, construction cost, and market-rate rents all play into the project valuation, which should also be established. With a range of target tenant types and a construction budget established, designers can create prebuilt office space layouts to get the process started.
Commuting to the office is now more of a conscious decision than ever before — the space needs to reflect that choice by providing elements and details that are intentionally, not accidentally, designed.
Adding small Zoom Rooms, cell phone chargers in café tables, and dimmable lighting in offices are some ways of providing functional, thoughtful details in the office. We’re also seeing more soft seating “heads down” moments for people to get up and away from their desks, smaller reception lounges without a full-time receptionist, and enhanced cafés with large central islands for catered lunches.
The building’s architectural style and neighborhood also plays a crucial role for the design team. When creating prebuilt office spaces it’s helpful to blend the neighborhood’s character with the preferences of potential tenants so that the office space has a sense of ‘place’. For example, in an industrial New York City neighborhood, a prebuilt might feature exposed ceilings and concrete floors, showcasing an original aesthetic that reflects the character of the building.
Cohesiveness is Key
The design team’s next job is the fun part — establishing an aesthetic direction for the building. It’s crucial to enhance the building’s best features while appealing to a broad range of audiences. There isn’t a one-size-fits-all formula; designers should develop two color schemes to give potential tenants a choice that best matches their branding and overall aesthetic. Optionality is key. This includes providing one standard carpet in two colorways, a range of accent paints, an upgraded floor finish, or an exposed ceiling option. By establishing a limited range of flexibility and choice within reasonable guidelines, the space can be tailored and ownership will still have a consistent and easily modified offering for the next corporate tenant.
Design accents should correspond with elements found in the building’s lobby or align with the materials already found on the property. This creates a seamless experience, ensuring that the transition from the front door of the building to the suite flows nicely, as though even the smallest corporate tenant looks like they own the entire building.
Prebuilt office spaces have to be memorable. It’s up to the design team to source or create something unique for the space without being overly extravagant or impractical. Sometimes it’s an exquisite light fixture you might find in someone’s home; other times it’s the convenience of having a seltzer water dispenser or cold-brew coffee tap in the pantry.
Benefits of Prebuilt Spaces
Buildings that offer prebuilt spaces bring a number of benefits to both building owners and potential tenants as these spaces serve as versatile solutions for both short and long-term tenants. Prebuilt offices can be used as flexible “swing spaces” within the building. In addition to the standard unfurnished prebuilt offices, ownership teams are also offering one or two suites fully furnished and pre-wired for the most immediate, move-in-ready space. Existing corporate tenants can temporarily relocate during expansions or renovations while retaining the same address. Ownership can accommodate tenants earlier than their new space may be ready, making for an easier experience during construction.
Once a prebuilt office program is established, documented, and built, the opportunity to lease a space doesn’t end. New corporate office tenants, seeking spaces built to the standard of the prebuilt program, are enticed because they had the opportunity to walk through a finished product. But meeting their specific needs – the office count, size of the suite, the orientation of the pantry – is sometimes easier done in a new space than in an existing prebuilt office. Enter the turnkey solution.
Turnkey projects offer the corporate office tenant, the ownership team, and the design team an opportunity to build a new office space that meets all, or most, of the tenant’s needs with a clear understanding of the project budget and schedule. Enhancements, beyond the standards shown in the prebuilt office, can be itemized and detailed at the tenant’s choice and expense. A revised layout, a custom-sized suite, and an enclosed pantry, or vice-versa, can be built for the new tenant with the design guidelines from the prebuilt office program. With building ownership input, it’s the design team’s job to make sure that the plans closely adhere to the building standards and that the finished space is something that could be re-used or slightly modified for a future tenant. While not as straightforward as a prebuilt office, the turnkey project approach offers a more long-term solution for both ownership and the corporate tenant.
Future Opportunities Using Prebuilt Spaces
What started as a way to rent leftover space is now an entire approach to leasing and attracting new tenants. The market will continue to demand more than just prebuilts, pre-furnished suites, and turnkey projects. Corporate office tenants are in a quandary, trying to entice employees back to the office while still benefiting from the cost-savings of reduced office square footage on shorter-term leases. Ownership teams need to take a close look at the entire property, not just the empty rentable square feet, in order to develop a whole-building strategy that can attract new corporate tenants. Leasing teams want a thoughtful offering that not only meets today’s tenant needs, but remains competitive and adaptable in the future. Design teams need to stay connected with the end-user office tenants to anticipate how best to meet their demands within the context of the building.
Overall, prebuilt offices have become an attractive option for landlords and tenants, providing time-saving attributes and move-in-ready spaces. However, creating successful prebuilt offices requires careful strategy and design implementation, all starting with understanding typical corporate tenants’ needs and creating tailored spaces in context with the building. Through close teamwork between the design team, leasing team, and ownership, prebuilts are the starting point to meet today’s office demands while remaining nimble for the future.
Images provided by TPG Architecture
