Research & Development (R&D) property actually originated in California's Silicon Valley. When the Silicon du an aqua city 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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GCC or what called Gulf Cooperation Council is union with member states including Kuwait, Bahrain, Qatar, Oman, United Arab Emirates and Saudi Arabia. Only Iraq from Arab States of the Persian Gulf stands out from GCC. With its own integrated and interrelated rules, regulations and policies, GCC works to promote the overall growth of member states.
Booming Real Estate
Making investment means securing life when it is made on the right sector. Real estate GCC is found to boom in last few years. There is no doubt most of the reputed companies around the world started their operations in Gulf countries. Thriving tourism and ever growing job opportunities attract several tourists and talented professionals from different parts of the world to gulf countries. All these factors increase the demand for both residential and commercial properties in GCC.
Tantalizing Tourist Spots
Gulf countries are known for their tantalizing tourist spots. Dubai itself attracts thousands of people from different parts of the world during shopping fest conducted every year. With beautiful tourist spots providing all assortments of thrills and funs, everyone loves to spend few days on the laps of Gulf staying at hotels or rental homes increasing the demand for rental and leasing properties.
Properties in prime locations
Almost all of the properties are located in prime locations that give easy access to important amenities and locations. The rates and demands for the properties are sure to rise in future to assure good investment returns for the investors. Real estate experts and researchers state that real estate recession in GCC is nowhere to be seen in long years to come.
Professional assistance
Never jump in to real estate investment without proper knowledge of real estate market. Online ads of making rich in months can make or break your investment dreams. There are professional real estate GCC consultants with years of experience to help you. Their tailor made services and years of experience help a lot in making your entry to GCC real estate investment market perfect.
Investment made to expectations
GCC never make scars on your investment expectations. You can find perfect properties to match your expectations and budget. Professional real estate marketing consultants help you to find the property without making more rides and runs. They assist you in all stages of property dealings till you get the documents on your hands.
Big Dreams with Small Investments
If you love dreaming big with small investments, then it is hard to find another option than that of properties in GCC. Bright future and consistent growth of all member states in GCC provide excellent deals in all sectors that invite more and more people from different parts of the world.
Conclusion
Investment in real estate properties of GCC with assured returns in high ratios never makes the investors to feel otherwise.