Entries Tagged as 'Chicago Office Space'
According to a report by the real estate firm Studley, Chicago’s downtown office lease transactions are only about one-half of what its historical long term average has been. Completed office space transactions reached 1.1 million square feet in the 2nd quarter and 7.2 million over the past 12 months leaving the Class A vacancy rate in the Chicago CBD at 18.5%. With a market size of 120 million square feet of office space in the Chicago, Downtown area, this transaction rate is close to a complete stall.
Tenants are still slow to make decisions and transactions are taking longer to complete. There are a number of larger tenants in the market now who will have to make a decision within the next several months as to what to do with their expiring office leases. The gap between landlord and tenant expectations are narrowing and deals are becoming easier to make. As the economy picks up, these tenants will be making decisions and hopefully Chicago Office Space will see some better activity.
Chicago Office Space , Office Space , Office Space Negotiations
With office space vacancy rates at recent time highs, office rental rates down as much as 30% in many office markets and no bottom found in the woes for office building owners, now is a great time to renegotiate your lease. Even if you have 2 or more years left on your current office lease you may be surprised at the willingness of landlords to renegotiate. It is not a market specific phenomena, but one that is nationwide. It doesn't matter if you lease office space in Manhattan, Chicago, Houston, Denver, Los Angeles or even small markets such as Fresno, Raleigh or Rochester. Every office space market has been affected. Many office building owners are having financial difficulties not only on the occupancy side, but also on the mortgage side. If a landlord has a refinance coming due, you may find yourself in a great position to blend and extend. What this means is that you would extend your office space lease for another 3 to 5 years at a lower rate in order for the landlord to show to their office building lender that they have long term office space tenants. No office building owner will agree to reducing a financially strong tenant's rent, unless the restructured agreement provides them with some sort of economic benefit. In this case while you are paying less rent, it turns out to be a win-win situation since your new lease will help in the refinance process for the office building owner.
Chicago Office Space , Denver Office Space , Los Angeles Office Space , Manhattan Office Space , New York Office Space , Office Leasing Tips , Office Rental , Office Space , Office Space Negotiations , Office Vacancy Rate , Tenant Representation
How do you get this process started?
The best way is to contact your Local OfficeFinder Office Tenant representative. Office Tenant Representative services won’t cost you anything and they are professionals at negotiating office leases. OfficeFinder Office Tenant Reps average over 12 years of experience and many have advance designations earned though demonstrating their skills and knowledge. It is a no lose proposition for you. Give them a try. There is no obligation.
Federal Reserve Beige Book Summary
"Reports on commercial real estate markets indicated that demand for
space remained weak and that construction continued to decline in all
Districts. Atlanta, Philadelphia, Richmond, and San Francisco reported
that vacancy rates increased, while rates held steady in the Boston and
Kansas City Districts and were mixed in New York. Boston, Dallas,
Kansas City, Philadelphia, and Richmond commented that the demand for
space remained weak. Commercial rents declined according to Boston,
Chicago, New York, Philadelphia, and Richmond. Rent concessions were
reported in the Richmond and San Francisco markets, and Richmond noted
that some landlords had postponed property improvements in an effort to
conserve cash. Construction remained at very low levels, with modest
improvements noted in public construction in the Chicago, Cleveland,
and Minneapolis Districts."
OfficeFinder does not expect much improvement in occupancy until the employment figures turn very positive and positive office absorption can take place again. We are hoping to see some improvements by the middle of 2011.
If you need an office space, it’s as easy to find as your keyboard and mouse!
For more information, visit www.OfficeFinder.com.
Boston Office Space , Chicago Office Space , Dallas Office Space , Manhattan Office Space , Office Space , San Francisco Office Space
A recent article in the NuWire Investor describes the state of the sublease office space availability throughout the US. In a word, plentiful. In fact, Cushman and Wakefield has pegged the amount of available sublease space at 10.3 million square feet at the end of the first quarter. Cities experiencing the largest increases in sublease office space include New York, Chicago, San Francisco, Denver and Boston.
My educated guess is that there is a lot more sublease office space available than is reported. With all the recent layoffs, many companies have probably not had time or been willing to prioritize getting their excess space listed. Many of these companies have more to worry about than a little excess office space. They are trying figure out how to survive.
A word to the wise. If you are considering renting or leasing sublease office space, be careful. There are many pitfalls that need to be navigated to make sure that your sublease will stand up in the event the sub-lessor defaults. Makes sure to work with someone who knows the ins and outs, otherwise you could find yourself with nowhere to house your employees when you get evicted... without any fault of your own.
Get help finding office space.
Boston Office Space , Chicago Office Space , Denver Office Space , Manhattan Office Space , Office Relocation , Office Space , San Francisco Office Space , Sublease Office Space
According to a recent report by CBRE the amount of empty offices in downtown Chicago took an 8% jump in the first quarter of 2009. The year end 2008 empty office rate for office space in downtown Chicago stood at 12.3%. The 8% jump brings the current office vacancy to 13.3%. They also noted that there was a 40% increase in sublease office space to a total of 3.8 million square feet. Much of the sublease space came from "financial companies, including the collapsed Bear Stearns Cos. and Washington Mutual Inc. JPMorgan Chase & Co. and Bank of America Corp. also resorted to subleases."
As we see unemployment increase we will also see a corresponding increase in the vacancy rate in not only Chicago, but all major markets. The higher the unemployment, the greater the increase in the office vacancy rate in that office space market. This in turn will help turn the office rental rates lower providing better deals for those tenants who are looking for space.
Taking advantage of these opportunities can be tricky, especially if you are considering sublease space. There are risks involved and it is important that you get professional advice. A great source is to use a tenant representative; a licensed real estate professional who specializes in office space leasing and sales. They have a fiduciary responsibility to look after your best interest. Avoid using listing agents. No matter what they tell you, they represent the landlord. Typically a tenant rep will not cost you anything since they share in commissions offered by the landlord. It is a win-win for you. Make sure and level the playing field and have an advocate who know the tricks of the trade. They will make sure you not only get great space at the best price, but also avoid potentially business crippling mistakes.
Get help finding office space in Chicago.
Get help finding office space in other markets.
Chicago Office Space , Lease Negotiations , Office Relocation , Office Space , Tenant Representation