Ultimate Office Real Estate Resource

Office Real Estate Definition

Commercial buildings that provide a working environment for primarily administrative, technical, and professional services.

Mezzanine Offices

Mezzanine refers to office space typically built within an industrial facility that is usually located along the perimeter of the building and creates an intermediate floor inside the existing building structure. Mezzanine offices are great for industrial property tenants that have a need for onsite office space. They are usually raised off of the ground floor on a second level to maximize valuable floor space, and can even double as a break room or conference room.

Medical Offices

Medical office buildings are designed to accommodate the specific needs of healthcare practitioners and patients. These facilities often include features like patient waiting areas, examination and treatment rooms, and specialized infrastructure for medical equipment. Additionally, they must comply with various health and safety regulations, and are typically located in areas with easy access for patients and often near hospitals or residential communities.

Industrial Office

Industrial office buildings blend office space with industrial facilities, catering to businesses that require both administrative and production or warehousing capabilities. These structures are typically characterized by larger floor plans, higher ceilings, and robust infrastructure to support industrial activities, such as manufacturing, assembly, or distribution. They are often located in industrial parks or areas with good transportation access and are designed to accommodate heavy machinery, storage needs, and larger workforce requirements, while also providing dedicated office areas for management and administrative staff.

Office Parks

Office parks are planned developments that cluster multiple office buildings in a suburban or semi-urban area, offering a cohesive work environment outside of traditional city centers. These parks often feature a mix of low to mid-rise buildings set in a landscaped setting, providing a campus-like atmosphere with shared amenities like parking, cafes, and sometimes recreational facilities. Designed for convenience and efficiency, office parks cater to a variety of businesses, promoting a community of professionals while often providing easier access and more relaxed settings compared to urban office locations.

Class A

• Lobby Concierge
• 24/7 Security
• Night and Day Janitorial
• Restaurant Dining Options
• Executive Suites
• Gyms and Fitness Centers 
• Daycare Centers
• Lounges and Creative Spaces 
• Valet Parking Services
• On Site Car Wash
• Electric Vehicle Charging
• Private Outdoor Space

Class B

• On-Site parking
• Exterior Security Patrol
• Nightly Janitorial
• Shared Conference Room
• Cafeteria and/or Vending Machines
• Common Outdoor Space

Class C

• On-site Parking Lot
• Shared Conference Room
• Shared Break Room and/or Kitchenette

Central Business District (Commonly called CBD) refers to the commercial and business center of a city. In larger cities, it is often synonymous with the city’s financial district and geographically coincides with the “city center” or “downtown”. Office real estate located in a central business district are usually characterized by high-density development, being high-rise with 25+ floors with structured parking and multiple elevators. Tenants are usually large and national household names such as banks, law firms, and other types of professional service companies. Office buildings located in Central Business Districts often sell naming rights on the top of buildings (i.e. signage located on top of the building facade) for both branding and leasability purposes. Below is a list of pros and cons:

Central Business District Pros

• Centrally located with high walkability among highly desirable amenities such as performance venues, popular restaurants, and public transportation.
• Prestige and a strong professional presence demonstrates a respectable image to both  clients and employees.

Central Business District Cons

• Congested traffic conditions and unfavorable commuting requirements for daily employees.
• Rental rates and other associated costs are at a premium when compared to alternatives located outside of the CBD.

Suburban office space refers to mid-rise office buildings that are located outside of the core of a  city’s center. You can think of these buildings as the medium-sized building you often see sprinkled throughout commercial corridors that run through suburban neighborhoods. Their sizes range from 80,000-400,000 square feet and may not have an elevator depending on the height. Suburban office parks are a subtype of this type of office class, in which several of these low to mid rise buildings are assembled into a campus-like setting. Although amenities are usually limited, suburban offices have several favorable characteristics over central business district offices. Below is a list of pros and cons:

Suburban Pros

• Convenient location for employees and clients by not having to commute and fight downtown traffic.
• Rent pricing and other associated overhead such as parking, is more affordable than CBD office locations.

Suburban Cons

• Located away from popular major amenities commonly found in central business districts such as popular restaurants, public transportation and walkability.
• Limited number of Class A buildings in these secondary locations may present a challenge to find desirable amenities.

• Law Firms
• Financial Services
• Government Agencies
• Healthcare Providers
• Real Estate Agencies
• Consulting Firms
• Marketing and Advertising Agencies
• Educational Institutions and Training Centers
• Technology Companies
• Non-Profit Organizations

• Location: Prime locations in city centers or business districts typically command higher rents due to greater demand and accessibility.
• Building Quality and Age: Newer and well-maintained buildings with modern amenities often have higher rental rates.
• Infrastructure and Amenities: Buildings with advanced technological infrastructure and amenities like parking, gyms, or conference facilities can command premium rents.
• Market Demand and Supply: High demand with limited supply in an area can drive up rental rates, and vice versa.
• Economic Conditions: Broader economic factors, such as inflation and economic growth, can impact rental prices.

• Property Size and Layout: Larger spaces and efficient layouts that maximize usable space can attract higher rents.
• Lease Length: Longer lease terms can sometimes lead to lower per-month rental rates due to secured occupancy.
• Accessibility and Transportation Links: Easy access to public transport and major roads makes an office more desirable and can increase its rental value.
• Neighborhood and Local Amenities: Proximity to restaurants, banks, and other services adds value to office spaces.
• Zoning and Land Use Regulations: Restrictions and allowances in zoning can affect the availability and future development of office spaces, impacting rental rates.