Over the past week we have tweeted quite a few times on the improving office space market. While we all like to hear news of an improving economy, what good news for the office space market means is that the office space market is in the process of beginning its transition from a tenant market to a landlord market. As has happened with economy in general (and will hopefully continue), this process will take a couple of years for the transformation to complete. The process will not be even from market to market, but we will see markets such as New York, Washington DC and San Francisco lead the way in declining vacancy and increasing rental rates. As employment continues to improve other primary and secondary markets will follow. The general consensus is that this will take a couple of years to happen, but most are in agreement that most markets have hit bottom and rental rates will begin to climb.
For tenants who have been on the fence as to whether or not to renew or relocate their office, now is a good time to get started to ensure a low rental rate for a long-term lease.
Manhattan Office Property Surges Bolstered by a stronger-than-expected recovery in hiring http://ow.ly/a7NMm
The Jumpstart Our Business Startups (JOBS) Act: What You Need To Know http://ow.ly/a6Wma
It's slow all over - The US #officespace vacancy rate at the end of March stood at a whopping 17.2% http://ow.ly/a6DOw
#OfficeSpace lease opportunities to tighten in second half - Office Rents on teh rise http://ow.ly/a5cxl
Information and media companies pass Wall Street as top leaser of #officespace in New York as office rents increase http://ow.ly/a3G5t
U.S. #OfficeSpace Sector Records 8th Straight Quarter of Improving Fundamentals - Asking Rents on the rise http://ow.ly/a3FRc
ULI: Consensus of Economists Sees Promising CRE Outlook Through 2014
Why Is Your Landlord Sprucing Up Your #Officespace Building? http://ow.ly/9W5IM
Manhattan Office Space , New York Office Space , Office Space Negotiations , San Francisco Office Space , Washington DC Office Space
Last week I went to a seminar on making the business case for sustainable and energy-efficient buildings: value beyond cost savings. The program was sponsored by the Building Owners and Managers Association (BOMA) of Seattle and was well attended by not only building managers and real estate agents but architects as well. The program presented numerous ways to evaluate why it building owner would and should go green.
In many office buildings there are many opportunities to take advantage of low hanging fruit related to cost savings that to pencil out. These would include simple activities such as changing out the lighting to lower wattage or compact fluorescent bulbs, turning off computers and other equipment when not in use as well as turning the lights out. More of these simple methods can be found on OfficeFinder's green office page.
Unfortunately many of the other more significant means of going green can get very costly and may never pencil out in a discounted cash flow analysis. If you are evaluating whether or not to implement major green initiative retro fits strictly due to cost savings, in most cases they just won't make sense.
What does make sense in implementing green technology into an office building is related to tenant demand and tenant retention. As I have discussed in previous blog posts related to workplace trends, employees are happier and more productive in workplaces that promote sustainability. This means businesses will make their decision on where to lease space or purchase office space based at least partially on whether or not the property promotes sustainability. This doesn't mean that it will be the sole factor in deciding where to locate, but it will help those buildings that are LEED and energy Star rated at the top of the list of office space alternatives to consider.
For building owner this can add up to some significant monetary savings, although it is a difficult one to measure accurately. If an office building owner is able to retain an office tenant rather than have to go out and find new ones, they will save not only the time space would have been empty, but also save related to tenant improvements, commissions and their time that they would have to spend on releasing.
Another benefit to building owners in improving the sustainability of the buildings is that government regulations related to sustainability is continuing to get stricter. By making improvements now, rather than waiting for government regulation to require those improvements, building owners can "proof" against future regulation.
When deciding on whether or not to retrofit equipment the landlord will be take into consideration their occupancy, market position, and equipment cycle. Related to equipment cycle, it may not make any sense to replace a new piece of major equipment, but when making the decision on replacing equipment that needs to be replaced, it only makes sense to look into sustainable products.Green Office , Office Space
Coworking is the latest trend to hit the Office Space market. I thought it would be interesting to find out what they think they are selling. To do so I decided to track down the tag lines many coworking spaces are using. Here is a sampling of them. As you can see, the ideas that permeate are that "It's The People" who you can collaborate with and an "Alternative to the traditional workplace" are the most important ingredients.
Love Where You Work - Select Office Suites NYC
Individuality Without Isolation – Office Nomads Seattle
A Physical Social Network - WeWork NYC, SF & LA
Community Center for Independents – New Work City NYC
Where Entrepreneurs Work and Connect – Green Space NYC
Where Change Goes to Work – The Hub SF
The Workplace for the New Economy – NextSpace SF
Collaborative Office Space to Think, Work and Innovate – Co-Spot SF
A Nicer Place to Work – Citizen Space SF
Building the World We Want to Live In – Hub Seattle
A Coworking Boutique – The Mill Seattle
Space. Work. Network. – The Yard Brooklyn
Work. Learn. Make. – 3rd Ward Brooklyn
Rethinking the Workplace – WorkBar Boston
Better Work Starts with Better Coworkers - Independents Hall Philly
A Workspace Retreat from Traditional Office Monotony – Work/Playce Philly
You name your passion and we will help you find a way to make it grow – Spice Factory Chicago
Neighborhood coffee house built for mobile professionals, freelancers, creatives and anyone else who would like to get work done – Topics Chicago
A clubhouse for entrepreneurs, designers, and geeks – The Speak Easy Indy
A Place to Work & A Place to Grow – 151 Locust Atlanta
You know how you always wonder where all the cool kids hang out? Well, wonder no more - Lightbulb Charlotte
work FOR yourself, not BY yourself - Blankspaces LABoston Office Space , Chicago Office Space , Coworking office space , Flexible Workspace , Manhattan Office Space , New York Office Space , Office Rental , Office Space , Philiadelphia Office Space , San Francisco Office Space
- Veterans born before 1946 (*13% of the Workforce)
- The Baby Boomers 1946 – 1964 (*26.4% of the Workforce)
- Gen X 1965 - 1980 (*19.8% of the Workforce)
- Millennials/Gen Y 1981 on (*27.7% of the Workforce)