1 INSIGHT

R&D buildings blend office and light-industrial space, giving tenants the flexibility to handle design, engineering, testing, and small-scale production under one roof. Most R&D properties feature 40–60% office (drop ceilings) paired with 40–60% warehouse or lab-friendly space (open ceilings), though ratios vary widely by market and owner preferences. The right mix matters – too much office raises costs, while too little industrial space limits workflow and equipment options.

2 ACTION STEPS FOR TENANTS

• Verify the office/warehouse ratio fits your operations: Confirm the actual square footage breakdown during tours – don’t rely on listing estimates. Ensure the office area is enough for your team but not so high that you overpay for space you don’t need.
• Assess ceiling types and infrastructure early: Drop ceilings signal traditional office use, while open ceilings support lab work, light assembly, storage, or equipment installation. Check power, HVAC zones, and floor load capacity to ensure the building can support your technical needs..

3 KEY TAKEAWAYS

• Flexibility varies by building – R&D properties are not standardized; ratios can differ dramatically even within the same park.
• Open ceiling areas offer more utility – better for equipment, testing, storage, and reconfiguration..
• A mismatched layout increases costs – choosing the wrong ratio can lead to unnecessary build-outs or operational inefficiencies.