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.
Chicago Office Space , Lease Negotiations , Office Relocation , Office Space , Tenant Representation