“HOUSTON-An increasing demand for trading space has led Jones Lang LaSalle to launch a new practice dedicated to helping companies find, expand or develop trading floor space. The seven-member group is part of the firm’s mission-critical practice, which includes data, call and customer-care centers.”
Although it’s considered office space, Egger and JLL vice president Barry Weiner point out that trading space has different requirements. Because trading is a 24/7, year-round activity, the building needs to support day-and-night productivity, meaning high security and nearby amenities. Floor plates need to be larger and open so traders can see one another. Also as with any lease or development, telecommunications is a prime consideration because traders are dealing with multiple providers. “Power requirements are significant beyond standard office space,” Weiner says.
Then, there is the equipment. “A typical office is eight-by-eight or six-by-eight and has one CPU,” Weiner explains. “A trader could have up to four CPUs and up to nine monitors.” Such a set up requires a higher infrastructure level and system, he adds.
Egger tells GlobeSt.com that the equipment collectively puts out a lot more heat than an average office, requiring a special HVAC system. Trading floor space requires a chilled water system, one capable of cooling densely occupied space without going on the fritz. “A lot of buildings don’t have that kind of infrastructure and capacity,” Egger says.
Leases tend to be longer because of the significant capital investment needed to develop a trading floor, Egger continues. “TI dollars contributed by the landlord aren’t much more significant than in an office build-out, but there is a larger investment from the tenant,” he says. “That’s why the tenant needs a longer-term lease.”
Credit goes to Globest
Tags: energy corridor, energy trading, enron, jones lang lasalle, trading floor
