Floor Plate
A term commonly used in commercial real estate to refer to an entire floor of a building. The term is commonly used when discussing square footage and/or variations in size and shape of floors within a building.
Example of how it can be used:
There are two different floor plates in this building that should accommodate various users. The bottom third of the tower has 30,000 GSF floor plates that are rectangular, while the upper two thirds of the building consist of 20,000 GSF floor plates that are square.
Putting “Floor Plate” in Context
Redfield Capital, a real estate investment firm specializing in core-plus acquisitions, is evaluating the purchase of Preston Towers, a 150,000-square-foot suburban office building in Plano, Texas. The building, constructed in 2004, is located in a prime business corridor, but the competitive nature of the Plano office market means Redfield Capital must carefully assess key building features before proceeding with the acquisition.
One of the most important features the firm is evaluating is the floor plate of each level of Preston Towers. In commercial real estate, floor plate refers to the size and shape of each individual floor within the building. Preston Towers features a consistent floor plate size of 25,000 square feet per floor, which provides flexibility in accommodating a variety of tenant needs, from single-floor occupants to multi-floor leases.
The Role of Floor Plate in Office Leasing
The floor plate of an office building is a critical factor in determining the types of tenants a building can attract. Larger floor plates are ideal for companies that require open-plan layouts, such as tech firms or large corporate offices. Smaller floor plates, on the other hand, are often preferred by professional services firms, law firms, or other businesses that benefit from smaller, more compartmentalized spaces.
At Preston Towers, the consistent 25,000-square-foot floor plates allow for significant leasing flexibility. The rectangular shape of each floor means it can be efficiently divided into multiple suites for smaller tenants, or leased entirely to a single, larger tenant. This flexibility makes Preston Towers attractive to a diverse range of potential occupants, from local accounting firms to regional corporate headquarters.
However, Redfield Capital has also noted that many competing office buildings in the Plano-Frisco area offer floor plates as large as 30,000 to 40,000 square feet, particularly in newer developments. Larger floor plates can be more attractive to larger corporate tenants who prioritize expansive, open office environments. As a result, Redfield Capital must position Preston Towers carefully, focusing on attracting tenants who value flexibility, efficiency, and central location over sheer floor plate size.
The Investment Strategy
Redfield Capital’s investment strategy includes leasing flexibility as a core component. The 25,000-square-foot floor plate at Preston Towers allows the building to target a variety of tenant types. Redfield Capital plans to reposition the building with upgraded common areas and modern tenant buildouts, while also marketing the efficient floor layouts to appeal to small and mid-sized companies.
Additionally, Redfield Capital plans to implement space-planning strategies to highlight the efficiency of the building’s rectangular floor plates, which maximize usable space while minimizing wasted square footage. The company’s leasing team believes this will make the property attractive to tenants looking for adaptable office space at a competitive price point, particularly as nearby properties with larger floor plates typically command higher rental rates.
Conclusion
In the case of Preston Towers, the consistent 25,000-square-foot floor plate plays a crucial role in the property’s leasing strategy. While the floor plate size is smaller than some newer competing properties in the Plano market, its flexibility and efficiency make it an ideal fit for small to mid-size tenants. By emphasizing these strengths, Redfield Capital can position Preston Towers as a competitive option for a variety of businesses looking to lease office space in Plano’s growing market.
Frequently Asked Questions about Floor Plates
What is a floor plate in commercial real estate?
A floor plate refers to an entire floor of a building, typically used to describe the size and shape of a floor, especially when discussing square footage or layout variations.
How large are the floor plates at Preston Towers?
Each floor plate at Preston Towers measures 25,000 square feet and has a rectangular shape, offering flexibility for both single-tenant and multi-tenant leasing configurations.
Why does floor plate size matter in office leasing?
Floor plate size impacts a building’s appeal to different tenant types. Larger floor plates suit open-plan offices for larger firms, while smaller or mid-sized plates offer efficient layouts for smaller businesses and professional firms.
How does Preston Towers compare to competitors in floor plate size?
While Preston Towers offers 25,000 SF floor plates, some newer competing buildings in the Plano-Frisco market feature larger plates of 30,000 to 40,000 SF, appealing to larger tenants seeking expansive layouts.
How does Redfield Capital plan to leverage the floor plate design?
Redfield Capital plans to highlight the leasing flexibility and space efficiency of the 25,000 SF rectangular floor plates, making them appealing to small and mid-size tenants while upgrading common areas to attract interest.
What is the advantage of a rectangular floor plate?
Rectangular floor plates maximize usable space and simplify space planning, allowing for efficient office layouts and flexible suite configurations for a wide range of tenant needs.
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