As executive vice president for Elite Building Corp., based in Waltham, Massachusetts, Michael Snedeker assists with tasks such as acquisitions and planning. One of the Michael Snedeker’s main duties involves negotiating financing for commercial real estate transactions for Boston-area clients.
While Boston is abuzz with high-rise construction starts, with several skyscraper projects underway as of February 2020, mid-rise office space offers investors benefits not found with larger buildings. For one, renting mid-rise office space is more cost-efficient and much less expensive than leasing space in a high rise.
In Culver City, California, for instance, leasing office space in a high rise costs at least $1,000 per square foot, but a comparable office in a mid-rise building would be roughly just over $315. For investors, these lower prices translate into higher profit margins.
The mid-rise office is attractive to certain demographics because they are more versatile. For example, for the millennial, the mid-rise office space is ideal for creating office space with an atmosphere similar to a campus. Moreover, these offices can easily be converted to co-working spaces. Ultimately, this versatility lends itself to more opportunities to have offices in the building leased.