Research & Development (R&D) property actually originated in California's Silicon Valley. When the Silicon Valley boom was going strong, they couldn't get space fast enough to build all the office buildings they needed. They had difficulty getting permits, buying land, and constructing buildings. Remember, office building construction is far more time consuming and costly than building warehouses-because of the interior finish work entailed, it's harder to do and takes much longer.
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What they did in Silicon Valley was to build very nice warehouses with dry wall and movable partitions on the inside, and call it R&D/Flex space.
This new construction alternative made it easier and faster to build a warehouse with a small office space rather than a formal office building. Most of these structures are one-story buildings with high ceilings, rear loading docks, and ample parking. If you are in flex space, you can combine office, light manufacturing, or even a warehouse into one space. Having no shared costs for hallways, bathrooms or a lobby means that you can get more space for your money, and rent exactly what you need. Companies are putting their staff into warehouses that are built as nice as any office.
R&D or flex space is becoming more popular today, given the shortage of office space. If you wanted to rent 3,000 square feet instead of 33,000 square feet, they might even be willing to do that. All they have to do is build a wall and add the ceiling. One of the issues you run into when you start building walls is fire ratings. You need to make sure that if you are working with flex space, you know the specific building codes and the applicable fire codes.
Flex Space Story (The following story is related by one of our real estate investment instructors)
I tear down walls, once a wall is built. However, tearing down a wall is a lot more expensive than building that first wall. The ceilings are all in now, but when you first built the walls, there may have been no ceilings.
Perhaps all the duct work and everything else in that section were still exposed. When you built this wall as a firewall, it was very easy to build it right up to ceiling. Now, you have other ceilings installed, so when you take down that wall, the first thing you must do is fix the ceiling. The second thing is-there's a place where there is no carpet along the floor. So, to rebuild the wall, you have to go through the ceiling, which is much more costly. So, all of a sudden, it's probably not flex space any more. Usually, it's flex space only one time. After that, the space takes on a more permanent quality.
Hope you enjoyed this article about R&D/Flex Space origins. Stay tuned for more interesting facts about commercial properties in upcoming articles.
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Real estate in philippines varies in price according to many factors. Among these factors, there are three that have the greatest influence:
Location
The location of real estate in philippines has one of the most, if not the most, effect on the real estate's price. Usually the closer the land is to commercial centers or recognized vacation spots, the more expensive the land becomes.
If a real estate is residence long an found in a highly developed and commercialized area, it is closer in proximity to essential services and establishments such as schools, hospitals, parks, entertainment grounds, municipal halls, museums, and other important institutions. Areas that are considerably far from such amenities and institutions are generally less appealing because people would have to travel greater distances to avail of the services these establishments provide compared to those that are nearer.
On the other hand, if the real estate is located near a recognized vacation spot, its cost increases, but for more obvious reasons. Apparently, relaxation and privacy come with a hefty price tag.
Sometimes though, there are just areas that are inherently more expensive than others. This may have something to do with the historical significance of the place or its proximity to one.
Accessibility
The price of real estate in philippines and in any other countries also has something to do with how accessible the location is. Roads and other infrastructure cost a great deal of money to build and maintain which is why lands supported with paved streets cost more than lands surrounded with dirt roads.
Land Developer
Real estate prices are also affected by the companies that own them. The more popular the real estate company is, the more expensive the lands are. This is because bigger and more widely-recognized realty companies invest large sums of money on quality service and infrastructure in order to provide prime real estate and service. It is not surprising why lands owned and sold by these large companies cost more than those offered by less familiar real estate competitors. While smaller companies offer only real estate, the bigger companies offer land, road, and other amenities. Plus, larger companies have a greater amount of experience with land management and development than smaller and newer competitors which ensure buyers of more stable service. For more information visit to our site at