What is a Contiguous Block in Commercial Real Estate Leasing?
I've noticed many business owners get confused about commercial space options when planning their next move. Let me clear up one of the most useful yet misunderstood concepts in commercial real estate: contiguous blocks.
Contiguous Block: A contiguous block refers to multiple connected or adjoining commercial spaces within a building that share common walls or boundaries. These spaces are typically located next to each other on the same floor, allowing for the possibility of combining them into a single larger unit.
Key Features of Contiguous Blocks
The physical makeup of contiguous blocks offers unique advantages that set them apart from standard commercial spaces. These units share walls or boundaries and exist on the same floor level, making them perfect candidates for combination into larger spaces.
For tenants, this setup creates amazing opportunities. You can start with the space you need now and expand later without relocating your entire operation. Think about the time and money saved by avoiding a complete move! Plus, your team stays connected and productive since everyone works on the same floor.
Property owners benefit too. Large companies often search for buildings that can accommodate future growth, making properties with contiguous blocks more attractive to these premium tenants.
Common Uses and Applications
Corporate offices make excellent use of contiguous spaces. I've seen countless businesses start with a modest footprint and gradually take over neighboring units as their teams grow. It's much smoother than splitting operations between different floors or buildings.
Retail businesses love these spaces too. A clothing store might start with one unit for their main shop, then expand into the next unit to add a shoe department. Medical practices also benefit - they can add new treatment rooms or specialist areas without sending patients to different locations.
What to Consider When Leasing Contiguous Blocks
Before signing that lease, think about:
Your current space needs versus future growth plans
Building systems like HVAC and electrical capacity
Renovation requirements to combine spaces
Local building codes and necessary permits
Lease terms for multiple units
Construction costs for combining spaces
Common Misconceptions Cleared Up
Many people think contiguous spaces are always available or easy to secure - that's not true. You might need to wait for neighboring tenants to move out. Some assume combining units is as simple as removing a wall, but it often requires careful planning and proper permits.
Related Concepts You Should Know
Floor plate efficiency matters when considering contiguous spaces - it's about how usable the combined space will be. Space planning becomes extra important too, since you'll need to think about both current and future layouts. Don't forget about tenant improvement allowances, which can help offset combination costs.
Looking Ahead: The Future of Contiguous Spaces
Office spaces are changing. More companies want flexible areas that can grow or shrink as needed. Mixed-use developments are incorporating contiguous blocks in creative ways, giving businesses more options than ever.
Ready to Find Your Perfect Space?
Contiguous blocks offer fantastic opportunities for growing businesses. Bellhaven Real Estate specializes in finding the right commercial spaces for companies like yours. Our team knows exactly what to look for in contiguous blocks and can guide you through the entire process, from initial search through lease negotiation.