The folks at Trinity Partners are trying a new approach to attracting office tenants.
They are building out office spaces in their uptown
getting them move-in ready for prospective tenants. They are installing modern,
upscale finishes such as bamboo flooring and glass tile, the developer says. Conference
rooms and break areas will also have upgraded finishes. Ally Center
Traditionally, office tenants sign leases for unfinished spaces and work with landlords to build-out the area.
The owners of the 15-story
decided to offer finished units to cater to smaller tenants who wanted space
immediately, said Ally Center Gary Chesson, a partner with
Trinity Capital Advisors, a real estate investment firm that developed the
office building and has an ownership stake.
“We are trying to pioneer this concept here in the downtown area,” Chesson said. “Many smaller tenants...don’t want to wait for the six-
process of negotiating terms, then signing a lease document, then doing
drawings, pricing and permitting and finally building the space.”
In all, the building at
S. Church Street has 130,000 square feet available
on five floors. Trinity plans to offer
roughly 19,000 square-feet of pre-built space: 3,500 square feet on the second
floor, 11,400 square feet on the third floor and 3,200 square feet on the 8th
The building, completed in 2009, will be able to accommodate tenants ranging from 2,000 square feet to 10,000 square feet. The larger space can also be configured to extend to 26,000 square feet, Chesson said.
Pricing will range from $23 a square foot to $24 a square foot, depending on the tenant's size.
In the past, pre-built offices were seen by some as inferior because they involved leftover pockets of space and low-quality finishes, such as basic carpet.
Attitudes are changing, say people involved in commercial real estate. These days, more companies are attracted to pre-built space if they have nice finishes. The interest is coming from companies that don’t have the time or the cash to endure the construction process, which can last half a year.
Last year, a growing number of
New York landlords got involved in the
pre-built business, offering space with granite and marble finishes,
stainless-steel appliances, and coffee bars, the New York
Times has reported.
Chesson said the building is getting nibbles from tenants and that his company has agreed to lease a small portion of one of the suites to a law firm. He said he couldn’t provide details because the lease wasn’t yet signed.
"It's working already," Chesson said of the pre-built concept. "This was a firm that needed space by June 30 but couldn't find a layout they liked in the market, and this was going to be ready to go when they needed it."