chicago office space listings

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

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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

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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.

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Office Lease And The Financial Components

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chicago office space listings

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

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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.

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.