Journal
More Than an Office: The Investment Case for Interurban (Foundry Plano)
Interurban is more than a place to work—it’s an opportunity to own a flexible Class A commercial asset built around your business and investment strategy. From occupying your own headquarters to generating rental income, creating flexible workspace, or combining multiple uses under one roof, Interurban gives owners greater control, customization, and optionality from day one.
Most people look at an office building and ask one question:
Do I want to work here?
At Interurban, we think owners should be able to ask a much bigger question:
What can this asset do for me?
Interurban was designed to give owners something that is increasingly difficult to find in commercial real estate: control and optionality.
Control over how the building is purchased and developed. Control over how it is designed. And, perhaps most importantly, flexibility over how the space can ultimately be used.
For an owner thinking beyond simply occupying an office, that creates an entirely different investment opportunity.
Greater Control From the Beginning
The investment story starts with the structure of the transaction itself.
Interurban owners may have the ability to purchase the real estate and pair it with a separate design-and-build contract. This structure can provide greater visibility into the development process, including build costs on a per-square-foot basis, construction decisions, deposits, and the timing of capital throughout the project.
Instead of purchasing a finished product with many of those decisions already made, owners have an opportunity to participate in the process from much earlier on.
That control extends into the design of the building.
Buyers work directly with our in-house architecture and design team, creating the opportunity to thoughtfully plan and itemize the building's components from the beginning. For owners working with their tax and accounting professionals, this may also allow the property to be designed and documented with strategies such as cost segregation in mind.
The result is an asset built not only around how an owner wants it to look, but potentially around their broader financial and investment strategy.
Occupy It. Lease It. Or Do Both.
One of the most compelling aspects of Interurban is that an owner doesn't necessarily have to choose between being an occupant and being an investor.
They can potentially be both.
An owner could occupy the entire building.
They could lease the entire property to another tenant.
Or they could design the building so they occupy one portion while generating rental income from another.
In fact, many of the buyers we're currently working with are exploring some version of the third option.
Because owners are involved in the design process early, spaces can potentially be configured with independent entrances, access points, restrooms, layouts, and other features that make portions of the building easier to operate separately.
That flexibility can fundamentally change the economics of ownership.
Serving a Gap in the Office Market
There is another opportunity we believe is particularly interesting: flexible Class A office space.
The traditional office market often asks businesses to commit to lengthy lease terms.
But not every company wants—or needs—a conventional long-term lease.
A growing business may need space for a year.
An entrepreneur may need a professional environment several days each week.
A company entering the market may want flexibility before committing to a permanent footprint.
An owner may even choose to explore daily office rentals or a coworking-style model where appropriate.
Interurban gives individual owners the potential flexibility to respond to those needs.
And when shorter-term, flexible space is offered within a Class A building in a Class A location, we believe it can become particularly compelling to prospective tenants.
That flexibility may also allow an owner to pursue rental rates different from those associated with conventional long-term office leases, depending on market demand and how the space is operated.
Build an Asset Around Your Strategy
There isn't one correct way to own an Interurban building.
That's the point.
For one buyer, it may be the headquarters they've wanted to own for years.
For another, it could be a combination of company headquarters and income-producing real estate.
For another, the building may be primarily an investment property.
And for investors evaluating strategies such as a 1031 exchange, portfolio expansion, or long-term commercial real estate ownership, Interurban offers an opportunity to evaluate an asset that combines customization, flexibility, and ownership in a highly desirable North Texas market.
The common denominator is optionality.
Instead of locking an owner into one use case, we're creating buildings capable of evolving alongside the owner's business and investment objectives.
The Value of Having Options
The best investment isn't always the asset that does one thing exceptionally well.
Sometimes, it's the asset that gives you more ways to win.
Occupy it. Lease it. Divide it. Create flexible workspace. Build around your tax strategy with your advisors. Hold it as part of a larger portfolio. Or combine several of those strategies under one roof.
Interurban gives owners a level of control that is difficult to find in traditional Class A commercial real estate.
And in a market where flexibility has become increasingly valuable, we believe that control could prove to be one of the project's greatest assets.
This article is for general informational purposes only and is not intended as tax, legal, or investment advice. Prospective buyers should consult their own professional advisors regarding their individual circumstances.