chicago office space listings

Office Space: Now That The Lease Is Signed, What’s Next?

chicago office space listings

Okay, so you finally found the perfect Chicago commercial office space to rent. What to do now that the lease is signed.  The lease is signed and moving in the near future is inevitable. The best way to ensure that your commercial office space move goes as smoothly as possible is to have a to-do list prepared prior to doing so. By having everything in writing, you know that the move will go according to plan and no stone will go unturned in the commercial office space move. The following offers a moving preparation list that you can consult and feel good knowing that your move will be a successful and uneventful one.

  • Prepare a Game Plan: Once the office space lease is signed and you know how much time you have prior to moving, the first step is to prepare a game plan. Write down what you will need to do and in what time period you will need to complete each task. Also, in addition to having a list of the pertinent items for the move, you should also have a calendar dedicated solely to your office space move as this will help you to keep things orderly.
  • Choose a Moving Company: The next thing to do once your office space lease is signed is to hire a moving company to move your belongings to your new commercial home. Contact various commercial office space movers, review their price listings and make sure that they are available on your desired move date. In addition, ask them if they offer boxes and, if so, whether that is included in the price of the move.
  • Create Communication Alternatives: When you are in the moving process, it is not always possible or wise to cease business operations during that time. Since you will have to cut off communications in some ways when you are in the move process, make sure that you have alternate communication options available for your clients, such as providing them with cell phone numbers or email addresses which they can use to contact you when needed.
  • Contact Utility Companies: You must also remember to contact both current utility companies and future utility companies to let them know of your impending move. Keep in mind you may be able to keep the same providers and even the same phone numbers if you are moving in the same general location.
  • Pack Up Current Office in A Convenient Manner: When it is a few days prior to your move, you have to start packing up your current office space to prepare for the mover’s arrival. Make sure that everything is labeled and orderly so that you can unpack the items in an orderly fashion when you arrive to your new office space.
  • Enlist the Help Of Your Employees: It is also a good idea to enlist the help of your employees. Have them pack up their individual office space and keep their boxes in their rooms until the movers arrive. This too will help with the overall efficiency of the move.
  • Moving Day: When moving day arrives, you will have already decided whether or not all employees should be there on that day or just essential employees who will be able to help with the move but not be too great in number that they get in the way. Make sure there are supervisors present to direct the movers at the new location and let them know what items go where.

Moving day for your new office space doesn’t have to be difficult. Once you sign the office space lease, simply follow this list of tips and get ready to enjoy your new office space location.

Office Space

Commerical Office Space Lease Rates and Escalations

Office Space

When compared to residential real estate leases, commercial real estate leases take on a whole different form. Commercial office space leases are more involved than residential leases, in general. Whereas with  residential leases, there is usually a set lease amount which will not increase, commercial real estate differs in that these tenants will face rent escalations now and again during their lease term. The following will highlight
what rent escalations consist of, the types of rent escalations and why such escalations are necessary for commercial office space leases.

What Are Rent Escalations?

Rent escalations are increases in the rent which commercial tenants will see from time to time, usually on an annual basis. This type of rent escalation is due in part to increases which the landlord sees along the way and has to pay due to operating the commercial premises. If it weren’t for such rent escalation clauses, commercial landlords would take a hit when prices increased for them and couldn’t pass that increase along to the tenants unless it was already included in the lease. Therefore, commercial office space tenants will see rent escalation clauses in their commercial lease which show when the escalations will occur and other specifics as well.

Types of Rent Escalations

There are different types of rent escalations in the commercial real estate realm. Operating expense escalations are a primary type of rent escalation which commercial business tenants will see. Since operation costs often fluctuate, and primarily increase, the landlord has to have a way to offset such costs and pass along those increases to the commercial tenants.  Some examples of rent escalations include utility increases, such as heating, air conditioning, trash removal and snow removal, janitor expenses, insurance, management fees, security, maintenance and more. Since these costs can often increase unexpectedly, the landlord then will put the rent escalations into motion and ask the tenant to pay an increased amount due to the increase in operation costs.

Rent escalations may also take effect when real estate taxes are increased. Since this expense cannot always be calculated in advance, it helps for there to be a rent escalation clause in the lease which the landlord can use to aid them should rent increases be necessary. As the rent escalation clause is in writing, it gives the commercial office space tenant notice about possible increases during the lease term.

Why Rent Escalations Are Necessary

Some tenants may feel as if their commercial lease rate should be constant each and every year. However, with the fluctuation of operating costs which often occurs, and sometimes greatly occurs, the commercial office space landlord would be losing quite a bit of money and not netting any return on their leasing arrangement. Rent escalation clauses in leases ensure
that the arrangement is fair in the way of money received and that the landlord will see some return in the commercial landlord-tenant relationship.

As a prospective commercial office space tenant, always be sure to look at rent escalation clauses in the lease and consider the presence of such when determining if the lease will benefit you in the long run.

Office Space

Chicago Commercial Real Estate Careers

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Commercial real estate is a promising career for many types of individuals in a wide array of positions. This field allows realtors, tenant representatives, real estate brokers and more to get involved with commercial real estate and engage in a lucrative job position. Although in the past real estate experienced a dip in sales, the truth of the matter was that commercial real estate didn’t experience too hard of a hit as residential real estate. These days, both residential and commercial real estate fields are getting back to their promising positions and returning to normal in the cities, suburbs and even rural areas. The following will list some prime commercial real estate careers in both Chicago and throughout the United States.

Commercial Real Estate Agent

If you are eager to take part in the actual commercial real estate transactions and work one-on-one with the seller or purchaser, then considering a career as a commercial real estate agent is a great idea. As a commercial real estate agent you can represent buyers and sellers who deal with commercial real estate purchases and sales. You will be their go-to person from the very beginning to the end. Commercial real estate agents deal with their clients, their real estate brokers, financial institutions, title companies, real estate attorneys and others. When you start a career in commercial real estate as an agent, you are seeing the entire process before your very own eyes.

Commercial Real Estate Broker

If you want to play more of a supervisory role in commercial real estate and you have prior experience in commercial real estate, becoming a commercial real estate broker is an option. The commercial broker supervises the activities of their agents and helps out when managerial issues arise. The commercial real estate broker is the lead in the commercial real estate firm and is the individual whom the commercial real estate agents report to in their daily business dealings.

Tenant Representative

Another wonderful option, perfect for those who wish to play a role in commercial real estate, is a tenant rep career. Those who are tenant representatives will help the commercial real estate tenants with every aspect of their business leasing. This individual will help the prospective commercial real estate tenant find a commercial office to lease, help them in their dealings with the commercial landlord and basically be the tenant’s contact person whenever they have an issue during their tenancy and wish to have someone by their side when they speak with the landlord. A tenant representative is a real estate career individual who wears many hats and serves many roles. This person will work alongside of the tenant and not have any individual loyalties with the commercial landlord.

Any and all of the careers listed above are excellent choices for those seeking a job in the commercial real estate field. Depending on your individual experience and desires, you may be more suited to one career over the others. The commercial real estate field is a continually growing one and certainly filled with a vast array of job options for those seeking work in the real estate industry.

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Office Lease And The Financial Components

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Before signing the documents on your next Chicago office lease, there are quite a few financial components you must consider. Since you want to be able to properly afford your annual office lease and also know just what you as an office tenant will be responsible for paying, it is important to ask questions prior to signing the lease. Some of the financial components as they pertain to office leases are listed below to help you in the quest for the most efficient office leasing experience.

Occupancy Costs

Before you sign a commercial office space lease, you should thoroughly evaluate occupancy costs. Check to see if the base rental payments will be fixed or escalated. In addition to the base rental payments which you are required to pay, there will also be other costs as well. Some of the additional costs which you as a commercial tenant will experience throughout the lease term include utilities, parking fees, janitorial fees, buildout costs and more. The lease may also include various rent provisions such as those associated with increased operating expenses. It is important to note that each and every commercial lease will differ as to what the landlord is responsible for paying and what the tenant must pay for on their own. Some
office space leases will be quite favorable towards the tenant as the landlord may pay for utilities, janitor expenses and more. Always read the lease carefully and have your tenant representative inquire with the landlord as to all of the inclusions within the commercial lease.

Determine Which Office Lease Is Most Beneficial To You

If you have a few different options available to you when it comes to office space leases, you want to pick the choice which is most beneficial to you as an office space tenant. In the end, you want to look at the net present value, which is the total cost which the tenant will be paying.  Tax factors should be kept in mind as well. It is also important to evaluate the rentable square footage as well as the usable square footage. By comparing the various costs of the office space lease options and the individual features of each one as well, you will be more likely to choose not only the most attractive option but also the best in terms of financial aspects.

Keep Financial Considerations at the Forefront of the Lease Decision

It is easy to get off track when considering the many commercial office space lease options and not put financial aspects at the forefront of the decision-making process. However, as a business owner, you have to ensure that you not only choose the right office space to accommodate your business but that you will also be able to pay for all of the associated costs. When reviewing various lease choices, make sure you know what the landlord is responsible for paying and what the tenant costs will be, in addition to the basic costs, such as rent. Doing so will allow you to make the right financial decision for your business.

Commercial Office Space

Commercial Real Estate

Commercial Office Space

Business owners who wish to lease commercial real estate have plenty of choices these days. Since not all business owners require the same type of commercial real estate, it is good to know that there are various options available. Some individuals who own businesses do so in the retail industry whereas others work in a light industrial setting. Whichever industry one is hoping to find a new office home within, there is sure to be quite a few choices, especially in downtown Chicago and the surrounding suburbs. The following will highlight some types of commercial real estate and detail what things prospective commercial tenants should look for in a commercial real estate setting.

Office Space

Professional office space is high in demand in the Chicago area. Appraisers, insurance agents, attorneys, medical professionals and those in many other industries need professional office space to operate their business out of on a daily basis. Some office space for Chicago professionals consists of a single office whereas others may be a few floors in a large office building. When choosing the right professional office space setting, business owners must consider location, square footage, office amenities, parking and more. Before settling on a specific office for your company, make sure that your desired inclusions are a part of the decision-making process.

Industrial Real Estate

For those who work in a more industrial field, industrial real estate space is necessary for day-to-day business operations. As with professional office space, the Chicago area also holds many options for industrial business owners. When considering industrial real estate locations, one must look at the surrounding neighbors to ensure that it is industry-friendly, in addition to checking on local zoning regulations to ensure that industrial operations are allowed. The landlord of the prospective commercial real estate will be able to answer these questions for you. You should also make sure that the industrial real estate location you select will properly accommodate the size of your business and be feasible for all of your work operations.

Retail Space

Retail shops are in abundance in Chicago and the surrounding suburbs and do a great deal of business, no matter what the retail operations may be. If your retail store is looking for a new home in Chicago, you will find plenty of retail lease options in most areas throughout the city and on the outskirts as well. Some features which you should look into prior to leasing a particular retail space include square footage, amenities, parking options, layout, delivery entrances and more. Taking a closer look at the current retail space neighbors will also help you to determine whether or not a particular spot will be the most lucrative one for your business.

There are so many different commercial leasing options available to business owners in Chicago and the Chicago suburbs. No matter whether your business is professional, industrial or retail, there is a future commercial home for you in the Chicago area. The best way to ensure that your leasing choice is the right one is to have a tenant representative by your side every point in the search.