Commercial Office Space And The Changing Office Trends

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Commercial office trends are seeing some drastic changes these days. Not only are companies as a whole undergoing transformations but the individuals who work for such companies are taking it upon themselves to pursue new varieties of working environments. The changing office trends are so prominent that it can be stated there will be major implications with regard to future office demand.

More Telecommuting Means Demand for Smaller Size Office Space Increases

In the past, telecommuting existed but was not as popular or readily available as it is today. More and more individuals are taking that step to turn rooms in their homes into home offices. There are many more ways to telecommute in a wide array of commercial industries. When more people select telecommuting as their employment option, this means that the demand for smaller sized office space increases.

As companies see their workforce working from home more often, they don’t need the large offices and corporate monstrosities which were once so necessary. This means that more commercial office space tenants will be seeking out small office space as opposed to large office buildings to ensure that they are not spending unnecessary cost on too large of an office building. In addition, competition will often be fierce when it comes to securing smaller office space as the demand for smaller office space increases.

Shared Office Space Amenities Increase in Demand

Shared office space is another office trend which is making an appearance in various industries. Shared office space is where commercial office tenants have their own set office area but share business necessities such as a receptionist, mail room, conference room and more. The existence of shared office space means that the commercial office space tenants will not have to pay extra to have their own individual amenities nor will they have to make extra space for a receptionist, for example. Shared office space is quite popular these days as it provides the necessary amenities to office space tenants and allows the tenants to save money in the long run.

Large Office Space Demand May Decrease

As the need for smaller office space increases, the need for large buildings and offices will lessen. The rationale behind this is simply that a business owner doesn’t want to pay for space which they don’t need and won’t use. Business tenants find it more practical to lease the right amount of office space and not acquire square footage which won’t be put to good use. This may leave large office space owners looking high and low for business tenants who still need a good amount of space for their company and their employees.

Although the aforementioned trends may seem like a serious concern, there will still be large companies with in-house employees which need the large office space for their company operations. However, there is certain to be a transitioning movement in the office space leasing area whereby smaller office space may be higher in demand in the coming years as opposed to the demand of the past.

Office Space Rentals: Changes and Trends in Office Space Density

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In the past, many different service and product providers would have offices which were large and all encompassing. Whether it was rows of office cubicles or a vast array of individual offices, many of the offices of yesterday were quite larger than many company facilities today. There have been quite a few changes with regard to office space density, largely due to business owners wanting to cut costs. The following will explore the changes and trends in office space density and highlight what the features of office space density are likely to consist of in the future.

Office Space Density Has Decreased As Costs Have Increased

Although there are many more office space facilities being built, many of the individual offices for various companies have been decreasing in size. Cost is a big factor in this regard. It is costly to pay for employee space as well as employee workspace materials. Many companies are downsizing as they simply can’t afford to have large offices due to the high cost associated with these areas. Utilities cost more as do office furniture purchases to properly accommodate many employees. The business owners have had to look to other alternatives in order to be able to afford operating their workspace. Fortunately, with technology on our side, many other options are readily available with regard to properly staffing a company while keeping office space density to a minimum.

Cloud Computing Enables Companies to Downsize With Regard to Office Space Density

Cloud computing is one technological advancement which has allowed business owners to cut back on their office space density. Cloud computing is a type of shared service option which makes it possible for businesses to get the services they need without having to have a bunch of extra employees taking up office space. The options available with cloud computing keep increasing and businesses are taking advantage of these features on an increasing basis.

Telecommuting Options Have Increased For Employees

Another change which is seen with regard to office space density is the increased availability of telecommuting options. Many company owners realize the advantages to having employees work from home and employees love the convenience associated with telecommuting. Basically, it is a win-win situation for all involved. This is another trend seen with the reduction of office space density and one which is quite popular for both business owners and their employees.

The Future of Office Space Density

The trends currently seen with office space density do not seem like they will be dwindling any time soon. As more business owners face the high costs associated with a large employee base, they will keep exploring options as to how they can reduce their office space density. Telecommuting options are bound to increase as are cloud computing services. Business owners are figuring out that by utilizing these options, they can decrease costs all the while having their staff properly in order and doing business with ease. Reducing office space density is possible and there are bound to be countless amounts of additional resources available to business owners who wish to decrease their office space density while maintaining their current operations effectively.

Sublease and Assignment Clauses in Commercial Leases

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Commercial leases can be a bit overwhelming when it comes to understanding their contents, especially for the novice commercial office space tenant. However, there are certain clauses to be on the lookout for within the lease which will dictate how you can engage in your tenancy. The sublease clause and assignment clause are two clauses which you will often find in a commercial office space lease. These two clauses let the tenant know how they can occupy their tenancy and whether or not anyone else may come into possession with their permission. Here are some things which you as a commercial office tenant must know about sublease and assignment clauses:

What Is The Difference Between a Sublease and an Assignment?

There are distinct differences between subleases and assignments in commercial leases. A sublease is when the office space tenant transfers only a portion of their office space lease term to another. On the other hand, in an assignment situation, the office space tenant transfers their entire interest in the remainder of their lease term to another individual. Some landlords will allow one, both or neither. It basically depends on the individual landlord and oftentimes what the current area trend is with regard to assignments and subleases in commercial leases.

What Do The Sublease and Assignment Clauses Contain?

The sublease and assignment clauses contain all of the factors surrounding these two types of tenant transfers. In general, the clauses will either state that the tenant is allowed to sublet or assign the property during their tenancy or that they must refrain from doing so. Some commercial real estate clauses pertaining to these issues may take the middle of the road approach and allow the tenant to do one or both of these transfers but with restrictions.

Are These Clauses Negotiable?

Sublease and assignment clauses are usually negotiable items in the lease.  It never hurts to inquire with your future landlord as to whether or not you can change the terms within the sublease and assignment clauses. A tenant representative can help you to make this request and provide valid arguments for why certain changes or requests should be granted.

Must You Follow These Sublease and Assignment Clauses?

Once the sublease and assignment clauses are in the commercial office space lease and the lease has been signed, they are permanent fixtures of the current lease. Therefore, you must follow the guidelines listed in these clauses. These sublease and assignment clauses not only benefit the office space landlord but also the tenant by detailing how the tenancy must be carried out during the lease term.

Sublease and assignment clauses are commonplace in commercial leases. The terms of assignments and subleases will vary depending on your individual lease. Before you sign your commercial office space lease, make sure you read the lease thoroughly, especially the assignment and sublease clauses if you intend to transfer any part of your tenancy during the lease term.

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Negotiating Office Space Renewal Options

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When you settle into your new office space, you may not initially think of the time when office space renewal will occur. However, time often moves quickly and before you know it, your office lease will be up for renewal. Sometimes business owners want to move on to a new location while others love where they are leasing and want to continue doing business in their current locale. For the latter group of individuals, there will come a time when negotiating office space renewal is at hand. Here are some options with regard to negotiating office space renewal and such options may make the renewal process take place in the smoothest manner possible.

Do Your Research With Respect To Current Market Trends

When you renew your commercial office space lease, you may be able to get a better deal on the future lease than your initial one. Current market trends may make it easier to negotiate commercial office space leases and you should research these trends to see what the current market looks like when it comes to real estate leasing for businesses.

Have a Tenant Representative Help Out

One of the best ways to make sure you are covered when the time comes to negotiate office space renewal is to have a tenant representative with you for the negotiation process. A tenant representative knows what the real estate market is doing and will make it easy for you to negotiate office space renewal. They not only lead you in the negotiations but will help you to negotiate in the best manner through proper planning and tactics. A tenant representative is your go-to real estate representative when it comes to commercial office space leasing.

Consider the Current Office Space Leasing Market

The current office space leasing market must be considered before negotiating the renewal of your office space. If the current market regarding commercial leasing is struggling, then you as a commercial office space tenant may get the best deal at the time. However, if there are plenty of tenants willing to lease office space in your local area, the lease costs may be a bit higher.

Use Your Past Positive Leasing Status to Boost Your Future Lease Options

Let’s face it. Commercial office space owners and commercial office space tenants both benefit from renewing an office space lease. There is no need to go through initial lease negotiations as would occur with a new tenant, the landlord doesn’t have to repaint or make renovations to the property and if the tenant was a prompt paying tenant, the owner will love this factor as well. Therefore, if you were a good tenant, chances are that the negotiations for the office space lease renewal will go smoothly.

Negotiating a renewal of your office space lease doesn’t have to be a tedious venture, especially if you use a tenant representative throughout the process. Before you go into any type of negotiations, make sure you know what you want to ask for, that the requests are reasonable and that you have a tenant representative by your side.

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Shared Office Space Chicago

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Leasing office space in Chicago is a desirable goal for many professionals. You may be interested in renting office space in Downtown Chicago but not have the need for a single business office space setting. This is where shared office space comes in handy. Shared office space enables you to lease a private office or two but have access to many shared amenities with other tenants in the building such as receptionist services, mail services, conference room availability and more. Finding the right type of Chicago office space is easy to do when you know where to look and what type of office space to look for overall.

Choose a Chicago Location Which Suits Your Business Needs

Searching for a Chicago office space lease location takes time, especially when reviewing the various shared office space options. You want to pick a location which suits your business needs. If you are a professional business, you want to locate a shared office space where other tenants focus on similar types of business. However, if you have an industrial variety of business, make sure that your shared office space is along the same lines as this type of business. Shared office space works best when all tenants are involved with similar lines of work, i.e. professional services, industrial businesses, etc.

Select Office Space Amenities Which Boost Your Business

When Chicago business owners lease shared office space they have the opportunity to acquire shared office services as well. These amenities make doing business a whole lot easier. Some of the service amenities which business owners can acquire via shared office space include receptionist services, conference room reservations, mail service, tech services and more. Rather than having to pay an employee to complete these services for your business, when you lease shared office space, you will have access to these amenities as a benefit of your lease, although some locations may charge a bit extra per month for certain added extras.

Calculate Office Space Needs Properly

Another thing which will help you to find the ideal Chicago Loop shared office space is to make sure you calculate how much office space you need. This helps in the search by allowing you to zone in on the right properties and ensure that the office space that you lease is neither too small nor too big. Consider factors such as your current employee base, line of work, whether you want individual cubicle spaces within the shared office space or open areas and more. When you calculate your office space needs properly, you will find that choosing the right office space location is an easy task to achieve.

Finding Chicago shared office space to lease is a wise choice for many businesses these days. It offers business owners options of sharing office amenities and paying less for the lease than they would have to if they chose to lease a single office space or entire building for their company. If you want to locate shared office space, the downtown Chicago area is the prime location to search.