The continuing appeal of pre-built suites is dramatically revealed in W&H Properties' leasing activity during the first half of 2005. Pre-builts accounted for a remarkable 15 percent of the total space leased in the period, an especially impressive statistic when one considers that these units are relatively small in size compared to blocks of up to 100,000 square feet leased by large tenants.
Why are W&H pre-builts so popular? Simply put, they put tenants in outstanding offices without the trauma typically associated with an office move. The tenants can experience quality while avoiding the hassles of planning, designing, constructing and scheduling, and the uncertainties of costs, timing and end results. With pre-builts, you can see exactly what you're getting, with no problem of visualizing how raw space will turn out.
Leasing a W&H pre-built unit means you have quality, appearance and function in a top building at a great address. Tenants can also "special order," customize and personalize details of their space without the inevitable complications of major construction.
In the first six months of 2005, pre-builts totaling 46,421 square feet were leased in W&H buildings, out of a total of 332,381 square feet leased in the full portfolio. Pre-built transactions generated $511,700 in commissions for brokers. To keep up with the growing demand, close to 85,000 square feet of these units will be delivered in the four W&H office properties during the remainder of 2005.
The strongest interest was in the Lincoln Building, where pre-built leases accounted for 33,341 square feet in the six-month period, representing one-third of the building's total activity and $263,531 in commissions to outside brokers. "We needed to move quickly, but we also wanted quality space," said one Lincoln Building tenant. "Our pre-built was the ideal solution for us. We've been here now for more than a year, and we're extremely happy with the decision we made."
At 250 West 57th Street, leases of pre-built units amounted to 9,900 square feet and $175,000 in commissions. One lessee was YSGF Management, part of the real estate investment group that purchased The Sheffield, located nearby at 322 West 57th Street, in one of the city's largest residential property transactions ever. "YSGF's decision to lease one of our pre-builts is significant," says Barry Zeller, executive vice president of Cushman & Wakefield, the building's managing and leasing agent. "This is a company that recognizes an outstanding real estate opportunity when it comes across one."
It's not just tenants who appreciate pre-builts. Brokers are also fans of the ready-made suites. The reasons are clear-cut: Move-in condition usually entails fewer negotiations and faster lease signing, which, of course, means faster commissions. And don't forget that W&H pays 100 percent of commissions upon signing!
In short, whether you're a broker or a tenant, we're sure you'll find our pre-builts enticing. Why not stop by to check out what we have to offer? No need to make an appointment; just drop by. We look forward to seeing you!