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Chicago Office Space Market Overview

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Chicago office space is readily available to provide a place for your organization to conduct business, whether in the retail, wholesale, goods, or services sectors. Known as the “Windy City”, Chicago sits along the south western tip of Lake Michigan and is home to famed Wrigley Field, home base for the Chicago Cubs baseball team and venue of many great sporting events and concerts. According to the 2000 Census, nearly 3 million people call this great city their home.  This metropolitan area offers a great venue for conducting business in goods, services, or industrial markets.

The Chicago commercial / industrial sector is steadily recovering from the hard economic times that faced the entire nation during 2009 and 2010. March 2011 indicated unemployment of 9.2%, down .3% from the previous month, and down a full point from one year ago. An estimated total of 162,000 non-agricultural jobs were added to the workplace during March 2011, indicating the market is once again growing to pre-recession levels. Chicago is home to a range of commercial activities including the healthcare, hospitality, and service markets. Industrial lease rates remained stable at an average of $3.91 per square foot net rate, down 0.05 from a year ago. Industrial availability declined leaving end the of the first quarter of 2011 reporting 124.8 million square feet (MSF) of the 1.2 billion square foot industrial market in Chicago ready for rental leases. Construction in the industrial sector continues with projects totaling almost 3 MSF in development.

Chicago office space for rent in the Central Business District (CBD) is considered those spaces inside the area known as the “Chicago Loop”. The skyline is dominated by high-rise building and the historic commercial center of Chicago rests inside this neighborhood. Bounded on the north and west sides by the Chicago River, on the south by Roosevelt Road, and on the east by Lake Michigan, the commercial and retail heartbeat of Chicago was born in this area but has grown in recent years to extend much further into the metro area. As of the 2000 census, only 16,388 people lived in this area which hosts little residential properly compared to the density of commercial and office in this community.

Chicago’s suburban office space market has begun to stabilize after experiencing the shakiness felt by most of the nation. The direct vacancy rate holds steady at 21.8% since the sharp increase experienced in 2009. The low demand market offers businesses seeking commercial office space for lease an opportunity to benefit from the renters’ market.  Asking lease rates have fallen to $21.14, down $0.92 from 2009’s second quarter figures, providing potential business owners the chance to negotiate historically low rental costs.

The Chicago Metro area hosts nearly 107.3 MSF of commercial rental space.  Chicago Office spaces are available in all sizes from openings in serviced executive suites to large commercial office buildings. No matter what your needs, Chicago has the right venue for conducting business and the market is perfect for making a move now while rental rate are low and vacancies are available.

The Loop Retail Historic District and the upscale Magnificent Mile compliment the shopping malls and huge department stores, offering resident a cornucopia of retail opportunities for shopping and retail jobs. One of the largest art museums, the Art Institute of Chicago offers special shows as well as regular business hours. The Goodman Theater, Chicago Theater, the Joffrey Ballet, Civic Opera House, Lyric Opera and Chicago Symphony Orchestra provide a range of performances year around. The Chicago Cultural Center provides enriching events and the huge Harold Washington Library offers an extensive literary collection. Grant Park, featuring Buckingham Fountain and free Grant Park Symphony concerts, is an oft visited leisure area, among the many Chicago has to offer. Annually, a two-week long food fest, the Taste of Chicago, is attended by more than 3 million hungry food samplers. With public and private schools and a variety of state and private colleges, business owners find opportunities for education that outshine many other cities. The Chicago River offers waterfront fun and Lake Michigan completes the variety of waterside activities. There’s always a lot to do in Chicago for all ages.

If you are considering Chicago commercial office space rental for your business, consider making your move now. There are plenty of opportunities for small businesses as well as large organizations in the Windy City of Chicago.  You can find help locating the right Chicago office space for rent by contacting OfficeFinder, a free service to help you in your office location process.

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Los Angeles Office Space Market Overview

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Los Angeles office space for lease or rent is available for every size and type of business. No matter how large or small your commercial office rental needs, you will find the perfect fit in the Los Angeles metro area. Each year, thousands of businesses take advantage of the wonderful opportunity to locate their business enterprises in this market.

The second largest U.S. city, Los Angeles is home to over 14 million people and offers a wide range of culture. With a Gross Metropolitan Product of $831 reported in 2008, LA is the third biggest economic center globally.

The past 15 quarter experienced increasing vacancy rates in commercial office space. The first quarter of 2011 has shown a drop in the vacancy rate, declining to 16%, the lowest rate since early 2006. The Greater Los Angeles area has over 214.3 million square feet (MSF) of commercial office space and the average asking rental rate is a low $2.35 per square foot.

All indicators project that Los Angeles is making a major economic comeback and while the market is still a bit soft; economic recovery is progressing slowly but steadily.  Analysts feel that the low has passed and growth can be expected in coming months.

Currently, Los Angeles has sufficient vacancies that landlords are quite flexible in working with tenants on lease negotiations. With rental rate on commercial office space at such affordable rates, this is a great time to lease Los Angeles office space. By the end of 2011, rates will likely have risen.

Unemployment in the Greater Los Angeles area continues to be quite high but is slowly falling. By mid-2012, unemployment should fall to 12% or less, according the experts. With the defense-related cuts in the aerospace market, LA will experience some impact. Current construction will add another 725,000 feet to the commercial business space.

Los Angeles with its varied culture and nearby Pacific beaches has a lot to offer workers living in this area. The weather is pleasant year round and there’s always a lot to do for fun. You can spot celebrities along the streets, visit museums, art galleries, festivals and so much more.

The residential choices for LA residents range from tiny, cozy bungalows’ to huge mansions. There are plenty of apartments and condos for lease, so people staffing your Los Angeles office will have no problem with housing.

The schools, but public and private offer great educational opportunities, and the many private  and state universities make high education easy for any of your children to find a college that suits them in the nearby areas.

Basically, with the wealth of Los Angeles commercial office space for lease, the fantastic weather, and variety of activities, LA is a great place to relocate your office, open a start up office, or expand into the area. You can find help locating the right LA office space for rent by contacting OfficeFinder, a free service to help you in your office location process.

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Recent OfficeFinder Tweets - Follow us!

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Here are a few od our recent Officeifnder Tweets. We'd love to have you follow us.  We promise not to Tweet about our breakfast!

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Office Tenant Improvement Costs are Skyrocketing

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dollar signCommercial real estate tenant improvements (TIs) have always cost a lot, but you would think that with the real estate market as a whole slowly marching back from the worst overall recession since the 1970s that some discounts would be available. This has not proven to be the case at all; in fact, costs for TIs requested by new tenants has taken a significant upturn during the first two quarters of 2011. What is driving this trend?

Misconception Regarding Labor Costs: One matter that causes people to think TIs should be flat or decreasing in cost is the fact that the commercial and private real estate markets went flat or, in some areas, sank into chaos. Unfortunately, the price or availability of real estate has nothing to do with the cost of workers that must be hired in order to perform tenant-requested modifications to a commercial real property. While there are plenty of workers available, the minimum wage for even menial tasks has risen and the cost of skilled labor has remained the same or increased due to average wages in a given market. In no case has the cost of construction labor, especially skilled labor, been reduced by the economy. A fair wage remains a fair wage and when a licensed contractor is required to perform work, that contractor requires a labor payment sufficient to cover his or her own pay as well as those people who must be hired to perform the tasks involved in the upgrade. As has always been the care, the more education, licensing, insurance, bonding, and other requirements that must be met by a legally operating skilled labor contractor, the higher the costs passed on to the property owner and, in the end, to the tenant paying for TIs.

Cost of Material Increases: As the economy rebounds, it seems that inflation is sneaking its ugly nose into everything everywhere. Even though salaries may not be increasing, costs are definitely on the rise. Donald Miller, a Central Texas contractor stated, “My cost for steel studs and related materials (used in TIs) have almost doubled during the first quarter of 2011. I’m not sure what caused this jump, maybe it is inflation, but I still have to pay the higher prices when I purchase materials to do my work.” Miller, like all other contractors, has no control over the cost of materials that must be included in job bids for TI work or any other type of work and it is only because all contractors are faced with this same increase that bids remain competitive. It isn’t just Central Texas that is facing these increases. Kenny Thompson of Thompson Concrete Construction, a Central Florida contractor, states, “I have to purchase lumber and steel for my jobs and I’ve noticed a sharp increase in the materials for what jobs that are available for RFP in the area in the last few months.” This impacts new commercial real estate, residential, and TIs – all phases of the real estate market and makes costs inch up.

Reverse Impacts of Poor Economy: Two years ago when the economy in the U.S. took a huge hit, many manufacturers of materials used in TI construction work had to lay off employees and reduce their inventory to bare-bones levels. Some companies had to close their doors completely, leaving holes in the manufacturing of some areas and resulting in shipping costs to move materials from regions still producing or having on-hand inventory. This means that premium prices are required by the construction supply companies because of reduced inventory on hand or higher shipping costs being rolled into the price of materials.

So while the “reasonable” person would expect TI cost to be lower, reality is quite the opposite.

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Coworking Office Space User Costs

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Coworking office spaceAccording to a recent article in Gigaom.com coworking space costs less for a user than using a coffee shop if you take into account the cost of buying drinks and snacks.  According to the study quoted, the average monthly cost of using the facility by way of a flexible desk is only $152 / month. A 24 hr / 7 days per week plan would run around $207.00 / month and a permanent 24/7 desk would be $387.00 / month.

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