Assumptions for vacant lease up of Class B office building
Hi, I'm underwriting a deal right now for a 190,000 SF Class B office building in a secondary market. 10-floor building with 7 vacant suites ranging in size from 3,000 - 10,000 SF. Vacancies are on floors 2 through 10. 

My question is:

* What is a fair assumption for how long it will take for these suites to lease up? I want a staggered lease up in my model but I'm not sure what is a reasonable assumption.
* Do smaller suites lease up faster than larger ones?
* Does the floor number make a suite more or less attractive? 

Thanks in advance.
[{"id": "imu5w97", "text": "Many things are unknown for someone to provide an answer : location, market, vacancy rates in the area, demographics, asking lease rates , operating cost compared to other buildings etc.\n\nOne way that you could get more info is to request the owner a copy of their budget and see what they have assumed for vacancies. Then you could survey the market and see if those assumptions are reasonable.", "replies": [], "depth": 1}, {"id": "imuzop2", "text": "I feel like we\u2019ve been saying things will go back to \u201cnormal\u201d in two years ever since COVID hit, but here we are two+ years later and things aren\u2019t back to normal (and nobody knows if or when it will be).\n\nEDIT: Especially for non-premier markets and Class B product.", "replies": [], "depth": 1}, {"id": "imuzy8j", "text": "24 yes yes", "replies": [{"id": "imva3wa", "text": "This is the way.", "replies": [], "depth": 2}], "depth": 1}, {"id": "imvcdxg", "text": "What\u2019s the vacancy for class B office. How many 10ksf tenants are there in class B buildings in your area. You\u2019ll see most of those go to class A with class b stuck with government and maybe non profits. Most likely you won\u2019t lease to such big tenants any time soon unless your leasing team has personal relationships with said tenants and you are prepared to give massive TI.   You\u2019ll be stuck with sub 1ksf tenants if you\u2019re lucky to even get that. Then again I might be completely off. Let us know it goes.", "replies": [], "depth": 1}, {"id": "imvchmp", "text": "What market? I\u2019d model 3 years to be safe", "replies": [], "depth": 1}, {"id": "imvjw3j", "text": "Way too many unknowns. Give us the city and everyone here can give you refined feedback.", "replies": [], "depth": 1}, {"id": "imvoqla", "text": "Are you underwriting for internal purposes or for lending?", "replies": [], "depth": 1}, {"id": "imvxzhg", "text": "In my secondary markets (Midwest), a vast majority of the positive absorption has been in Class A space. Class B has been pretty stagnant to negative for the past 2 years. Class B is tough. Would suggest high end of the market range leasing costs (TIs, LCs, and possibly free rent) to incentivize Class B tenants. Depends on the location but we don\u2019t usually see premiums on stories until you get past about 10 stories so should be ok there. GL my friend.", "replies": [], "depth": 1}, {"id": "imvyjsm", "text": "Fuck it and adaptive reuse", "replies": [{"id": "inacdg8", "text": "To what? Very few offices work as conversion to MF. I wish they did. I\u2019ve got about a 1% success rate.", "replies": [], "depth": 2}], "depth": 1}, {"id": "imxgmm3", "text": "I recommend developing a competitive  set for the ranges of the vacant spaces. Know your competitions quantity, quality, cost. Know what the competition is offering in TI, free rent, ect.", "replies": [{"id": "imxgo2l", "text": "\nHello! You have made the mistake of writing \"ect\" instead of \"etc.\"\n\n\"Ect\" is a common misspelling of \"etc,\" an abbreviated form of the Latin phrase \"et cetera.\" Other abbreviated forms are **etc.**, **&amp;c.**, **&amp;c**, and **et cet.** The Latin translates as \"et\" to \"and\" + \"cetera\" to \"the rest;\" a literal translation to \"and the rest\" is the easiest way to remember how to use the phrase. \n\n[Check out the wikipedia entry if you want to learn more.](https://en.wikipedia.org/wiki/Et_cetera)\n\n^(I am a bot, and this action was performed automatically. Comments with a score less than zero will be automatically removed. If I commented on your post and you don't like it, reply with \"!delete\" and I will remove the post, regardless of score. Message me for bug reports.)", "replies": [], "depth": 2}], "depth": 1}, {"id": "inevhfq", "text": "Who will be handling the leasing? Does your Acquisitions or Asset Manager have a solid connection with a leasing broker in the market? I'd start there to get a handle on what it will take in terms of TI/LC/Free rent to attract a solid tenant. Smaller Spec suites are working in some markets we know, which might lease up faster but with risks on improvement capital, tenant quality and lease terms.", "replies": [], "depth": 1}]