OFFICE · FEASIBILITY RESEARCH

Office Feasibility Study

An office feasibility study connects the proposed building and tenant profile to its submarket's leasing conditions. FDS evaluates competing space, rent assumptions, leasing costs and financial outlook. A new building, partly vacant acquisition and renovation each need different evidence, with available leases and property records informing the scope.

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THE QUESTIONS THAT MATTER

Test the space, leasing assumptions and cost of attracting tenants.

Before committing to a site or an operating plan, test the assumptions that will drive the project’s performance.

Which tenant types and suite sizes fit the proposed office space?
What direct and sublease space competes in the relevant submarket?
How do concessions and fit-out costs affect effective rental income?
When do existing leases expire and new rent payments begin?
How does slower leasing change the project's cash requirements?

A CLOSER LOOK AT THE OPPORTUNITY

What the study examines.

Industry-specific research connects site conditions and market evidence to the financial picture.

01 / STUDY SCOPE

Submarket & tenant demand

Employment and establishment data help identify the local business base. Research then considers the intended tenants, preferred locations and space requirements. Workplace patterns and employer announcements provide context; the forecast still needs evidence of demand for the proposed building format, suite sizes and rental terms.

02 / STUDY SCOPE

Comparable buildings & availability

Comparisons consider location, building quality, floor layouts, amenities and access. Direct landlord offerings and sublease space are distinguished, alongside physically vacant space and future availability. Planned deliveries and competing renovations are assessed with their timing so a broad city average does not substitute for the relevant competitive set.

03 / STUDY SCOPE

Rents & tenant acquisition costs

Quoted rents are examined with lease length, free-rent periods, tenant improvement allowances and expense responsibilities. The model states how effective rent is calculated and separates leasing commissions and other capital outlays. This makes comparisons clearer when competing buildings advertise similar rents but offer different financial terms.

04 / STUDY SCOPE

Building plan & lease rollover

For an existing office property, suite conditions, lease expirations, tenant concentration and proposed improvements shape the repositioning assumptions. Available building assessments and contractor estimates inform costs. The analysis considers downtime between tenants and the timing of rent commencement, with technical conditions confirmed by the appropriate project specialists.

05 / STUDY SCOPE

Operating forecast & downside cases

Property income, vacancy, operating expenses and the project budget are connected across the leasing period. Alternative cases test renewal rates, delayed occupancy, concessions and additional improvement spending. A signed lease, occupied suite and rent-paying tenant are tracked as distinct milestones when their dates differ.

06 / THE REPORT

Findings in context

The executive summary brings together the project overview, key assumptions and feasibility conclusion. The agreed scope reflects the project and its information requirements.

Share your lender’s requested scope when you enquire. Study requirements vary by project and financing arrangement.

Explore our research methodology →About FDS feasibility reports →

BEFORE YOU GET STARTED

Your questions, answered.

What is included in an office feasibility study?

The study examines the proposed office concept, tenant demand, competing buildings, availability and rental terms. Those findings inform leasing, operating and investment assumptions. The scope can address development, an acquisition or a defined renovation using the property's available records and plans.

Why is the office submarket important?

Tenants compare practical alternatives that fit their location, space and budget requirements. Downtown towers, suburban campuses and smaller neighborhood offices can serve different needs. A useful competitive set explains those differences and the effect of nearby sublease space, amenities and accessibility on positioning.

Can a building be leased but still have limited cash income?

Yes. A lease may be signed before tenant improvements are complete or rent begins, and concessions may defer payments. The forecast should show those dates and costs explicitly. Physical vacancy, committed space and effective income answer different questions about the property's progress.

What records help evaluate an office acquisition?

Share the rent roll, lease summaries, expiration schedule, occupancy history, income and expenses, suite plans and available building assessments. Include the purchase budget, planned work, tenant allowances and proposed financing. Identify any assumptions that depend on tenants renewing or expanding.

How are the office study cost and delivery date set?

They depend on the property, market research, leasing complexity, financial scope and completeness of the supplied records. Send your decision date and any lender requirements when requesting a proposal. FDS defines the engagement before work begins; the study does not guarantee tenancy or financing.

PLAN YOUR STUDY