Office

Class A towers to medical office: tenant improvement packages, stacking plans, and BOMA measurement.

Property Types

  • Class A trophy tower
  • Class B suburban office
  • Class C value-add office
  • Medical office building (MOB)
  • Coworking / flex space
  • Government / single-tenant net lease

Physical Attributes

  • Floor plate size and efficiency (rentable vs usable area)
  • Core factor and BOMA measurement standard (ANSI/BOMA Z65.1)
  • Ceiling height, column spacing, and window line depth
  • Base building HVAC zoning and BAS integration
  • Elevator count, cab capacity, and lobby queue times

Value-Add

  • Spec suite build-out targeting small tenants in soft markets
  • Amenity floor addition (fitness, conferencing, tenant lounge)
  • Lobby and common area modernization to reposition class
  • Energy retrofit (LED, VFD drives, building envelope upgrade)
  • Hybrid-work reconfiguration: hoteling stations, collaboration zones

Appraisal Approach

  • Income approach dominant: direct cap on stabilized NOI or DCF
  • Vacancy haircut based on submarket absorption and WALT
  • Rent roll analysis: in-place vs market rent, rollover schedule
  • Below-the-line TI and leasing commission reserves at renewal

Management

  • Tenant mix management: industry diversification, credit quality
  • Operating cost control: utility procurement, service contracts
  • Stacking plan optimization for contiguous block availability
  • Lease administration: escalation tracking, CPI resets, holdover

Strategic Concepts

  • WALT management and lease staggering to reduce rollover risk
  • Hold-sell analysis: cap rate expansion risk in rising-rate environments
  • Flight to quality: Class A premium widening post-pandemic
  • Adaptive reuse conversion feasibility (office-to-residential)
  • Suburban vs CBD allocation in a hybrid-work portfolio

Related topics

Net Operating Income (NOI) in Commercial Real EstateGross Lease Structure in Commercial Real EstateTriple Net (NNN) Lease Structure in Commercial Real EstateTenant Improvement Allowances in Commercial LeasesHold-Sell Analysis in CRE Asset ManagementCap Rate Compression in Commercial Real EstateBuilding Automation Systems (BAS/BMS) in Commercial.
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