Posted by Will in CA on June 04, 2004 at 14:01:04:
Thanks Carlos for your response. That helps a lot. I guess there is reason for confusion.
Definition of ‘Office’ versus ‘R&D’ ? - Posted by Will in CA
Posted by Will in CA on June 02, 2004 at 17:30:25:
I’ve been mulling over buildings that are located in a business park. Most of the buildings are occupied by either computer companies or pharmaceutical companies.
I’m not sure if these buildings are considered ‘Office’ or ‘R&D’? Anyone got a quick definition of what defines these classificiations?
Thanks in advance –
Will in CA
Re: Definition of ‘Office’ versus ‘R&D’ ? - Posted by Thomas Mote, CPM
Posted by Thomas Mote, CPM on June 17, 2004 at 20:02:38:
Actually, there are very clear-cut definitions between most market classes and sectors in the commercial real estate market.
Industrial space is clearly defined by zoning, for starters, and by use of the property. While industrial properties always have office space (always), this does not make them office properties, nor does it create confusion as to the primary and intended use of the property.
If a core function of the space is logistics, assembly, or materials handling, you have an industrial use. If the property was planned and built to accommodate truck bays and turning/staging, has more than one dock area, you are in an industrial property typically.
Flex space is space which is mixed between office and industrial in and industrial use area. You will typically have offices up front, shop or storage or warehouse in the rear. A lot of retail strip centers get converted into flex space–can be used for a variety of functions (hence flex).
R&D space is confused with flex but is different in the infrastructure requirements. Backup generators, compressed air and water lines, and power siftors are usually installed in R&D properties to accommodate delicate and expensive equipment and operating environments.
Office buildings are built and intended for professional services usage, and do not accommodate logistics and materials handling (other than supply deliveries and moving trucks, etc.).
If you get stuck trying to figure out what the building is, ask yourself what it was designed to do based on its capabilities these few areas, and that will answer most of your questions. Ironically, many commercial RE brokers confuse clients by using these expressions interchangeably, when each has its own niche, meaning, and usage from the consumer end.
Hope that helps.
Re: Definition of ‘Office’ versus ‘R&D’ ? - Posted by Carlos
Posted by Carlos on June 04, 2004 at 09:24:56:
Will,
I don’t know that there is a hard and fast definition that everyone agrees to. Typically, R&D buildings are single story and have some open high-ceiling bay space in the back, with either drive-in doors or docks for trucks. Office buildings are more often multi-story, with no open bay space. BUT, we’ve all seen lots of single-story office buildings, of course. I would say the bay space is what makes the difference, although there could be some other factors, too.
Terminology in this area is confusing. I’ve found there is a lot of overlap between “office”, “R&D”, “flex-space”, “light industrial”, “office-warehouse”, and some other similar terms.
Re: Definition of ‘Office’ versus ‘R&D’ ? - Posted by Nell Curry
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