Office Lease

Office Leasing: Benefits Of A Built To Suit

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Office Lease

As a business owner looking to lease office space, you typically have two main options: lease an already existing location that is ready to go or obtain a built to suit office space lease. Some business owners decide that leasing an already existing office is their best bet as it is all ready to be leased and may be more cost efficient as opposed to the alternative.  However, other business owners like the idea of a built to suit office lease.  Here are some benefits to choosing a built to suit office leasing avenue:

 

Get the Office Space Which Suits Your Commercial Business Needs

The best thing about a built to suit office lease is that you will be gaining a location which is built to suit your individual commercial business needs. No longer will you have to accept an office space which might work but not be the best that it can be. With an office lease which is built to suit, the developer will build the office space for you and then lease the premises to you. Throughout the process, the developer will ask for your input and ensure that the finished product is what you envisioned all along. Keep in mind that the lease term for a built to suit lease will be longer than a regular office space lease.

Lease an Office Which Is Often Environmentally Friendly

Another excellent benefit to the built to suit office lease is that many times these office spaces are environmentally friendly. Because the developer may receive certain financial incentives for making their new building energy-efficient, they are more likely to do so which will benefit you in the long run. This means that utility costs will be more favorable and much of the components within the office space will be technologically advanced as well. The end result is an office space which is environmentally friendly and cost-efficient.

Cut Renovation/Addition Costs One Might Incur With an Existing Office Space

It is not very often where a leased office space has everything which the office space tenant desires. That is, unless it is built to suit. A built to suit office lease will help you to cut any renovation and addition costs which you might incur as a result of your ready to lease office space not having everything you want and need for commercial space. Although you may pay more to lease a built to suit office space, you will ultimately save money in the end by not having to fund renovations or additions to the premises.

Built to suit office leases are the perfect answer for business owners who know exactly what they want in their office space, cannot find what they need in already constructed office space and are looking for a location which is up to date with regard to fixtures and overall construction. You will find that more developers are getting involved with built to suit office leases and there is quite a lot out there when it comes to builders who wish to enter into this type of arrangement with business tenants.  If you are searching for a specific office space and want to lease as opposed to buy an office, perusing your built to suit office lease options is a wise choice.

Office Lease: How Long Of A Term Should You Sign?

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Commercial office space leases are unique in many ways. One way relates to the length of the lease term for the commercial office space. As opposed to residential leases which are usually on an annual basis, commercial leases are a bit longer. You can choose a 3 or 5 year lease in some cases while other landlords require a 7 or 10 year lease when they want the tenant to stay in the leasehold for a bit longer. This will vary by location and landlord preference as well.

When trying to decide which type of lease term is right for you and when you want to choose an office space to lease which offers you the desired lease term, the following considerations will help:

Desire to Permanently Lay Down Roots in the Area

For business owners who know that this town or business center is where they would like to stay permanently, it makes sense to lease the office space for as long as possible. Unless you are interested in buying an office space within a few years, you want to reserve your current location as long as possible, especially if you want to stay in the area for the long term.

How the Location Suits Your Business

If you look at a lease option in a particular area and know that this will be a lucrative locale for your business, you can lease for a longer period of time. For those business owners who want to lease an office space in a current location but may not be sure how they will do overall in that specific area, a shorter lease term is advisable.

Budget Issues

It is good to know that the longer the lease term, the less expensive the lease may be. If you are leasing with monetary considerations in mind, which most business office tenants are, then getting a longer lease, if possible, will yield better financial results for you. Be sure to inquire with your landlord as to the cost for shorter and longer lease terms. Some landlords will offer the lease for the same amount, no matter how long the lease term may be, while others are amenable to lowering the price for a longer lease term.

Plans To Expand Employee Base

Another factor which will help you to decide how long of a lease term to enter into involves your current and future employee base. If you are going to stick with the general number of employees in the future and do not foresee plans to increase your employee base, then you may want to sign for a longer lease term as you won’t have to be concerned with the amount of office space in the future since your employee number will remain similar to the employee number you currently have.

Deciding on the length of the lease is an important consideration. You want to try to think ahead and determine approximately how long you will want to stay in that same location. Even though this may be a difficult decision to make so early on, it is something which must be considered prior to signing your new office space lease.

Office Space

Office Tenant Representation: Why You Need One

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Office Space

The commercial office leasing procedure can be a tricky one for many commercial tenants. Not everybody is well-versed in the commercial real estate field and going in on your own to lease office space can be a venture into the unknown. As a business owner, when you go into leasing office space, you want to be able to make intelligent, businesslike decisions.  With a tenant representative to aid you in the process, you can make the right business decisions with ease.

Here are some reasons why it’s important to have a tenant representative with you as you take every step in the leasing process:

  • A Tenant Representative Knows The Drill: As a whole, a tenant representative is the commercial real estate professional you need as they know how the procedure goes. You want to have the assistance of a professional so that you get the right property at the right price.
  • Help to Determine Your Leasing Needs: A tenant representative will help you to determine your leasing needs. In other words, how much space you need, what amenities you should have, the location which will be most ideal for your business and many more considerations. The tenant representative will think of all of the things you may miss and more.
  • This Real Estate Professional Knows The Market: When you lease commercial offices, you may not know what the commercial real estate market looks like at the time. Therefore, you may not know what the cost of the commercial lease is and what the norm is for leasing commercial real estate.
  • Negotiation Skills: A tenant representative is the perfect individual to have with you when you need to negotiate your future commercial space lease.  These real estate professionals are adept at negotiating these types of commercial office leases and will get you the best deal on your future lease.
  • Tenant Interest Protection: A tenant representative acts in the best interest of their client, the tenant. In something as difficult as a commercial real estate transaction, the tenant needs someone to act in their best interest and help them through the oftentimes difficult portions of the transaction.With the assistance of a tenant representative, you will feel secure in having this professional with you along the way.
  • Maintain Order In The Leasing Process: With commercial real estate leasing, there are quite a bit of steps in the process. The tenant representative knows how the procedure goes and will help to maintain order along the way. This guidance is especially important for the tenant who may not be as experienced with commercial leasing as is the landlord, who probably has gone through quite a few commercial real estate transactions in the past.

Going into a business transaction such as a commercial real estate lease without a tenant representative is simply not a good business move to make. In order to make your next lease agreement as favorable as possible and get the office space you desire, make sure that your tenant representative is present there with you.

Office Space

Chicago Office Space: Green Costs and LEED Certification

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Office Space

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.

Office Space

Chicago Commercial Real Estate Careers

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Office Space

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.