Two relatively new office space trends that have impacted the general office space market are co-working office space and virtual office space. As we approach the three year mark of the recession and slow recovery, many professionals have had to look for means to reduce their overheads. With conventional office space costing an average of $4,000 per year per person along with the additional cost of staff, equipment, furniture, telecommunications and Internet on top of that, many small companies have found other means to the way they work that does not include conventional office space.
Two of those alterative workplace methods are co-working space and virtual offices. Co-working space is space in which business people can use tables, conference rooms and shared facilities such as WiFi and videoconferencing on as needed and a pay-per-use basis, significantly reducing overhead. In manu cases it is simply an open room with tables or can be similar to a lounge.
A virtual office is essentially an official address, in a typically prestigious building, in which a small business can have a full time identity and use the facilities on an as needed basis.
Both of these alternatives have impacted the office space market by reducing the need for small business to have a full time office space. Executive suites have been impacted hardest since many of these busisness would have chosen full time offices with them. Even after the effects of the recession are gone, many small businesses will continue to use these alternatives, In fact, it is our believe that these modes of office space occupancy will continue to expand and become even more popular, not just with small businesses, but many large businesses as well. They fit the lifestyle of many younger workers better than conventional office space does.
For more information, please see our article on the
21st Century Office Space.
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Executive Suites , Flexible Workspace , Office Space , Virtual Office Space
The biggest mistake made by tenants looking for commercial office space is not engaging the services of a tenant representative; thinking it will cost them money. It doesn’t. A good tenant representative, like the ones we have at OfficeFinder, is invaluable in making sure you find the right alternative, negotiate the best possible deal and avoid costly mistakes. They do this every day and only get paid when you get what you want. And you don’t even have to pay them. It costs you nothing. Most Landlords hire listing agents and the tenant rep will share in that fee. If there is no tenant rep, the listing agent keeps the entire fee and you are on your own. Tenant rep services will save you money by making sure you do it right with solid information and advice.
Many tenants don't understand what a good office tenant representative does. A tenant rep does more than just find office space. A good tenant rep will coordinate the entire office leasing process from helping you define your needs all the way to ensuring your space plan works for you. In between, an office tenant rep will not only find suitable alternatives, help you negotiate the deal, but also help with information, advice, space planning and lease review.
Here are just a few of the many comments from businesses who have taken advantage of using an OfficeFinder tenant rep:
Our OfficeFinder rep did more than I ever thought that this free service would. I hope that this man gets a Raise. He really went above and beyond the call of duty. I thank him very much.
Elizabeth M. Palmisano - Phoenix, Az
The amount of information I received and the professionalism of our OfficeFinder rep was astounding. His knowledge and understanding of what I needed was overwhelming. He will always have my business, and I have no need to recommend anyone else.
Chris Van - Level 7 Productions - Los Angeles, Ca
I have never rated anyone at this high of a level but Jeff, our OfficeFinder Rep is exceptional. I don't know how he could exceed the level of service he has provided for us. I will not only recommend him to others, I will look for opportunities to recommend him.
Michael Shovlain - New Life Outpatient Center - Davenport, Ia
Thanks for your follow up. Our OfficeFinder rep has been extremely helpful in assisting us to find the proper offices over the last several months. We are now in our new location and I frankly don't know how we would have done it without him.
Jenny Makakoa - Xinify Technologies, Inc - San Ramon, Ca
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Lease Negotiations , Office Leasing Tips , Office Relocation , Office Rental , Office Space , Tenant Representation
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
The office vacancy rate in the US is the highest it has been in 17 years, since 1993. Effective rents were lower in the 2nd quarter as the office space market continues to struggle. It is not all bad news. The negative trend is slowing. In other words the vacancy rate is increasing at a slower rate and the bottom may be in site.
According a study published by the National Real Estate Investor magazine, "There is reason to be optimistic about the fate of office properties. A
turnaround may yet happen later this year, but the real recovery will
come to fruition next year"
Office Space , Office Vacancy Rate
According to the article below from the OC Register, 20% of professional employees are considering quitting their jobs. Undoubtably most won't considering the economic climate and the difficulty in finding jobs. But, if you are one of the ones who act on it, there are many options available to lease office space to start your own business. The options range from a home office, to virtual office space or executive suite office and of course conventional office depending on your needs, budget and image requirements.
"Two out of five professionals think about quitting their jobs after taking their summer vacations, according to Regus, a provider of flexible workplace ideas. Can you relate?
Of course millions of workers heard about JetBlue flight attendant Steven Slater's spectacular "I quit" recently, grabbing a beer and sliding down the plane's emergency chute. But he hadn't been on vacation. In fact, he probably needed one.
But apparently a vacation doesn't help for many workers."As workers pack up their swimsuits this summer, they are more likely to dwell on the pros and cons of the job that is waiting for them at home," said Regus Regional Vice President Sande Golgart.The top reasons survey respondents gave for wanting to quit:
* Lack of communication with management 40%
* Lack of career advancement 37%
* Feeling overworked 34%
* Company lacks vision 31%
* Colleagues are incompetent 28%
* Lack of administrative support 26%
* Rude colleagues 21%
* Boss takes credit for respondent's work 20%"
Stress caused by overwork has escalated during the past recession with people working harder and longer to make sure they can pay their bills," Golgart said"
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