Office Spec Suites Are Becoming a Standard

KBS is launching a spec suite program at Union Bank Plaza. Last week, the office owner announced plans to reposition the 700,000-square-foot office tower to the tune of $20 million. The spec suite offering—part of the repositioning project—will provide move-in ready spaces for tenants, and in some ways is an iteration of co-working spaces, which offer the same move-in ready environment.

“KBS is an institutional firm with an owner-operator mentality. We understand what today’s tenants are seeking, and we consistently identify innovative ways to deliver best-in-market offerings to our current and future tenants,” Tim Helgeson, SVP and asset manager and KBS, tells GlobeSt.com. “Our new spec suite program is an example of this innovative thinking. While many office owners have begun to bring available space to clean, white-box status, we are taking that a step further by building out spec spaces that truly demonstrate the flow, function, and aesthetic that is available within the property.”

KBS currently has eight spec suites under construction, and two have already been preleased. “To date, this program has been a tremendous success—many tenants have opted to move directly into the newly designed spec suites with no changes,” says Helgeson. “In fact, of the eight suites currently under construction at Union Bank Plaza, two have already been pre-leased and a third is in contract negotiations.”

Tailored office spaces and high-level service are becoming a standard in the office market, and forward-looking owners are looking for ways to stay ahead of this curve. “We are confident in this new strategy based on our tremendous depth of experience in the market,” says Helgeson. “KBS has owned Union Bank Plaza since 2010. As progressive owners, we understand that the market is always evolving, and we must be proactive in order to continue to meet the needs of today’s companies. This repositioning is an example of that proactivity.”

Downtown Los Angeles has become a market for forward-thinking owners looking to cater to more modern tenants, and several office projects in the market reflect that evolution. “Los Angeles is an established epicenter for top talent and a highly educated workforce,” says Helgeson. “This is a mature, thriving market with a workforce that continues to demand the very best in live/work/play amenities. Our upcoming Union Bank Plaza renovation and repositioning will deliver exactly that.”