Office Space

Chicago Office Space: Green Costs and LEED Certification

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In today’s society, individuals and companies are doing what they can to preserve the environment. Simple tasks such as recycling, conserving energy and using environmentally friendly cleaners are some examples of ways in which we are trying to preserve the environment for future generations. With that said, there are also larger ways in which environmental paths are being taken. For example, companies are leasing property in an environmentally friendly manner so that they can keep environmental factors in mind when doing so. The main issue occurs, however, when prospective office building tenants review the increased amount of the lease price due to the building being a green one.

Green Costs

Although most people would enjoy pursuing green commercial options, the truth of the matter is that going green in a commercial environment can be a bit pricey. Even something as simple as using energy-efficient light bulbs will cost the tenant more in the long run. In addition, if the landlord chooses to offer green features to the office space lease, the rent itself may be increased to accommodate for such inclusions. With this in mind, it is important to note that green costs are well worth the expenditure, whether you are a commercial office space tenant or commercial property landlord.

LEED Certification

LEED certification, which stands for Leadership in Energy and Environmental Design, is a green building rating system. When new buildings are constructed, contractors who want to shoot for LEED certification build the offices with environmental factors per the LEED certification guidelines in mind. This can be a pricey venture for the building owners and may, in fact, trickle down to the commercial office tenants in the end due to a higher rent being charged by the commercial building landlord. However, building owners may opt for the LEED certification goals as they want to do whatever is possible for the environment and may want to draw in environmentally-conscious commercial tenants.

Deciding If Green Office Space Is Right for You

The benefits of leasing green office space are readily apparent. You will be doing your part, as an individual and business, to preserve the environment on a daily basis. Your landlord may handle most of the green upgrades or components but your rates may be a bit higher due to the green qualities of the building. In order to figure out if green costs and an office building with LEED certification is right for you, review the following factors and make your decision accordingly:

  • Business with the Environment in Mind: Do you want to operate your business and lease an office space with the environment in mind? Do you find that you were frustrated with the lack of environmentally friendly features in your prior office spaces? If so, then the green costs will be worth getting an office building to lease which has LEED certification.
  • Cost Factors: You must also ask yourself if you and your company can afford the green costs associated with environmentally friendly office building leases and offices with LEED certification. Even though the building is already built and has received such certification, keep in mind that the green costs may continue for you, the commercial office tenant. If this is still agreeable, then leasing a commercial office space with green characteristics is doable.

Leasing an office with environmental factors in mind is a socially responsible and morally beneficial thing for business owners to do. If you find that you can afford the green costs associated with doing so, then finding a green office space to lease is a wise decision to make.

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Chicago Space: How Negotiable Is The Price Per Square Foot

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Office space leasing rates will vary in the commercial real estate market. The exact price of the office space rental will depend on a number of different factors. Some of these considerations include size of the rental space, location, amenities included in the commercial office space, parking options and more. All of these factors come down to the set price per square foot. In the past, price per square foot in commercial leasing situations was pretty much set in stone. There was little flexibility in the price terms and the prospective commercial tenant would just have to take it or leave it. Today, this trend has changed a bit.

Commercial Office Space Leasing Has Decreased

Since the economy has been less than stellar in the past few years, the need for commercial office space has decreased as fewer individuals and companies had the money to embark on a new commercial office space lease. This can be good for negotiating deals with the price per square foot for commercial office space tenants. Since landlords are more eager to occupy their commercial properties, they may be more likely than not to negotiate a bit when it comes to the overall price per square foot that they are asking.

Commercial Landlords Are More Willing To Negotiate To Get Rentals

Commercial landlords are well aware of the fact that they are not doing as well as they were approximately 8-10 years ago in the commercial real estate arena. With this in mind, they know that they must negotiate or risk losing potential commercial tenants who will ultimately go on to another commercial landlord who is willing to negotiate price per square foot. Even though the commercial landlord may not be getting their asking price, they are gaining a new commercial tenant and know that they will receive money as a result of the lease agreement.

Ways to Make Price per Square Foot More Negotiable

If you find a commercial office space to lease and the landlord is not exactly pleased about negotiating on the price per square foot, there are ways in which you as a tenant can make the price more negotiable and ensure that the landlord will be more willing to negotiate on price per square foot. First, make sure you are not too demanding with regard to other aspects of the lease. Don’t ask for multiple inclusions to the lease agreement and the landlord will be more likely to appease you when it comes to negotiating as to price per square foot. Also, be mindful of the current commercial real estate market. If the market in your area is still in a less than favorable position, you can feel more confident knowing that the commercial landlord may just agree to your price per square foot negotiations.

Negotiating as to the price per square foot terms is not as fruitless as you may think it to be. Review the current market and ask your tenant representative for additional ways to aid you in your price per square foot negotiations.

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

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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

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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.

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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.