He said the show floor concept drastically increased deal flow. Property
tours increased from between one and two tours per week to seven to ten
tours per week. Those spaces that sat vacant for ten years were leased within
months. By the end of 2011, the property was 95 percent occupied.
“Despite being virtually empty, the clean, fresh appeal of the rentable
space still gave prospective tenants enough of a vision that they could see its
possibility. The open canvas gave them the freedom to brainstorm concepts
that would work for them, rather than having to overcome the obstacle of
seeing past whatever the former tenant left behind.”
Whether an owner decides to pre-finish or white-box a space, or do either,
a lot of market research must be done to determine the potential effective-
ness of each strategy.
“It’s a risky practice to pre-finish to a heavy degree, said David Fisher,
CPM, and regional property manager in Brentwood, Calif. “White-boxing
space and creating generic space that multiple businesses could use is safer.
Regardless, research is necessary to determine if either strategy will offer a
return on investment.”
AND THAT AND
Considering the wide variety of
possibilities when it comes to pre-finishing or white-boxing a space,
the average amount of money spent
on either concept cannot truly be
measured, nor can the return on investment, experts said.
“No two buildings, areas or owners are alike,” said Day-Harrison.
“How buildings perform is different. How owners invest their