Company News
Owner of 2323 Grand building offers 'spec suites' for smaller, fast-moving tenants

By Miranda Davis

The owner of a Kansas City office tower is introducing a product designed for smaller tenants that want to move fast.

Stanton Road Capital LLC has been renovating the 2323 Grand Blvd. building since buying it in January 2018. Among the changes for the 11-story, 321,000-square-foot building is the addition of “spec suites.” These are smaller turnkey offices that require minimal tenant finish and, thus, can be ready for tenants in a shorter period of time.

The Los Angeles-based investment management firm bought 2323 Grand from Assurant Inc., which was acquired by Sun Life Finance Services Co. In 2016.

Stanton Road founder and Managing Partner Tim Ronan Jr. said Sun Life continues to operate out of five floors in the building and is renovating those floors in line with upgrades Stanton Road is making to the rest of the available space. Other tenants include the Seigfreid Bingham PC law firm and Thornton Tomasetti Inc., an engineering consulting firm.

The owner is building out spec suites in unused and dated conferences spaces on the lower levels of the building. The spaces range from 1,100 to 1,900 square feet, although the sizes can be customized.

The suites, which get their name from speculative office space that is built out or renovated without a particular tenant in mind, are smaller in size and have top-of-the-line finishes, Stanton Road hopes they attract small-but-nimble companies that are coming out of the city’s coworking spaces but don’t have time or capital for a traditional 3-month office build-out.

The spec suites are configured with amenities and lounge and break areas at the entrance of an office, instead of being hidden in a back corner as they are in older office layouts. The suites include lots of natural light and neutral grey and white tones.

The concept is something Stanton Road has executed in other markets and though it hasn’t been done yet in Kansas City, Ronan said he thinks there is demand. The spec suites will be finished in about 45 days. Stanton Road has a tenant for one space and interest in another, he said.

“Our experience is that if you build something like this, it’s either going to lease right away or while it’s under construction,” Ronan said.

He said Stanton Road remains interested in the Kansas City market, and continues to look for additional acquisitions here.

Cushman & Wakefield handles leasing and property management for 2323 Grand, as well as the building’s next-door neighbor, 2345 Grand Blvd. That 28-story, 630,000-square-foot building also is undergoing updates as owners,CrossHarbor Capital Partners LLC and Lingerfelt CommonWealth Partners, work to create an “amenities hub” for tenants.