87% of all leasing transactions in 2017 have had some form of fitout (speculative or existing) available to tenants
*Savills Office Leasing Market Bulletin – August 2017
With the objective of proactively increasing tenancy, many landlords are creating speculative suites (aka “Spec Suites”) to accelerate leasing time & enhance the tenancy experience. These spec suites are designed to inspire prospective tenants and provide a platform to allow tenants to envision their workplace before signing up. The trend is being seen across the major CBDs in Australia with leasing agents favouring this proactive strategy.
With office vacancy rates still over twenty per cent and conditions continuing to favour tenants, proactive landlords have been completing speculative fitouts or redecorating existing fitouts in order to make their offering attractive to tenants. This trend is likely to continue over the next few years as landlords look to attract and retain tenants.
– James Phelan, Savills WA
The ultimate goal: accelerating the leasing time of vacant suites and providing tenants with benefit of quick occupancy.
So what’s the key to success?
Designing speculative show suites is focused on creating environments that are flexible, functional and importantly, appealing to a wide range of potential tenants. They need to demonstrate the latest in workplace innovation and provide tenants with an efficient layout that can be easily adapted. They should be interesting and creative to meet the needs of today’s emerging businesses, yet neutral enough to address the demands of a wide audience.
Spec suites range in size, layout and finish qualities depending on the targeted tenant base, market location and landlord objectives. However, in general they feature the common areas of a contemporary office space including reception areas, workstations, breakout areas, meeting rooms, kitchen areas and facilities.
Current economic conditions are creating a slow decision making environment. High quality fitted out options are enticing tenants to make decisions faster. This can offer tenants a smoother and less complicated transition into new office accommodation.
– James Phelan, Savills WA
IA Design have worked with large and small clients across Australia to successfully design and lease spec suites. The key to this success lies in understanding our clients’ visions, expectations and needs, before applying our rigorous and creative design process. We take a pragmatic approach to understanding the competing issues of time, cost and quality, with the ultimate aim of creating environments that exceed our clients’ expectation.