Rosemont Office Space

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The Rosemont office space market includes the communities of Rosemont, Des Plaines, Park Ridge, Mount Prospect, Schiller Park and the northwest tip of the City of Chicago.  The Rosemont office market is the smallest of the four Chicago Illinois suburban markets (the others being North, Northwest, and East-West Corridor) at 18 million square feet.

Commercial office space users are drawn to the area for a number of reasons:

  • Proximity to O’Hare Airport.
  • Location at the confluence of the Chicago expressway system.
  • Availability of public transportation (CTA train stops at Cumberland Avenue and River Road, as well as O’Hare Airport).
  • Proximity to most densely populated areas of Chicago provides access to an excellent labor pool.

As a result of these and other benefits, the Rosemont market is the home of several corporate headquarters, sales operations, and associations.

ACCESS/AMENITIES

Access to the highway system has been further enhanced by the addition of a southbound entrance ramp at Balmoral Road and the Tri-State Tollway (I-294).  Additionally, Balmoral has been extended to Mannheim Road and will eventually extend directly into O’Hare Airport. Also, a two-way interchange (northbound ingress and southbound egress) will be added on the Tri-State Tollway at Devon Avenue, subject to Illinois Tollway Authority Funding.  This will greatly enhance accessibility to and from the northern suburbs.

Access is further enhanced by excellent public transportation in the area.  The elevated passenger train has two stops in the Rosemont market (Cumberland Avenue and River Road) before continuing on to the airport.

Bus routes fan out through the Rosemont market from both train stations.  This greatly enhances access to labor.

All of the major hotel chains are represented in the Rosemont market, as well as a number of first-class restaurants. Also, the Rosemont market boasts the ninth largest convention center in the country a casino hotel complex will open in Des Plaines in 2012.

DEVELOPMENT

With the turbulence in the economy, Rosemont office building development plans have been put on hold.  Developers who are interested in starting projects are finding it difficult to secure financing.

TAXES & OPERATING EXPENSES

The Rosemont office space market is located in Cook County.  A portion of the market is within the city limits of Chicago.  Real Estate Taxes in the Rosemont market are approximately $5.00 to $7.00 per square foot.  Operating expenses are similar to other buildings located in the Metropolitan Chicago area of $5.50 to $7.50 per square foot.

RENTAL RATES

Rosemont office building asking rental rates for Class “A” range from $27.00 to $31.00 per square foot gross, including current taxes and operating expenses.  Electricity for lights and outlets will be separately metered in most cases.  Building standard construction allowances of $5.00 to $40.00 per square foot are also included in these rental rates.  Fully negotiated rates range from $24.00 gross to $30.00 gross.  Typically landlords will provide additional concessions beyond these rental reductions.  The range in rental rates is determined primarily by the cost of tenant construction, lease term, and the landlord’s motivation.

Rosemont Class “B” buildings ask between $18.00 and $24.00 per square foot, including taxes, operating expenses and construction allowances.  Negotiated rates range between $17.00 and $21.00 gross, again with additional concessions in most cases.

Class “C” properties advertise rates in the $13.00 to $20.00 per square foot range.  Negotiated rates range from $12.00 to $17.00 per square foot.  Several Class “C” properties offer below grade space.  This category represents the low end of the range outlined above.

VACANCY & MARKET CONCESSIONS

As of the 4th Quarter 2009 the vacancy rate is 23.9% with a base of approximately 18 million square feet; this amounts to approximately 4,409,968 square feet of direct office space available.  This rate does not include sublease space, which adds another 332,275 square feet to the suburban Rosemont/O’Hare market.

ABSORPTION

There has been very little absorption over the past several years.  We expect this trend to continue as the economy continues to struggle.

OFFICE SPACE AVAILABILITY

With many available office space options to consider, and little demand, the Rosemont market shall remain a “tenant’s” market for the foreseeable future.  So called “shadow vacancy” i.e. space still under lease to a tenant but not being utilized is increasing dramatically.  When these leases expire, this space will go back to the landlord as vacant space.

ROSEMONT OFFICE SPACE FOR SUBLEASE

As the economy continues to struggle, we anticipate more companies to attempt to sublease space and will need to offer discounts of 40-50% in most cases.  Currently there are over 332,275 square feet on the market for sublease in the Rosemont office market.

Office Space Distractions – How To Minimize These

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Each day, work distractions are a serious consideration for employees. Not only does it affect work product but it is also a frustration for the employee who experiences such an event. There are many reasons for office space distractions, but on the bright side, there are also ways to fix these. The following will identify some office space distractions and solutions to combat those issues as well.

Open Office Space Can Be a Major Cause of Distractions

Open office space is a business trend these days, but not all companies should opt for this type of setting. When employees work in an office which has open office space seating, they may not be able to concentrate as well as they would if they were in a more sectioned-off office space setting. In order to minimize distractions, simply set up your office with well-constructed dividers and partitions or ensure that each employee has their own office space.

Limit Unnecessary Personal Technology Use in the Office

Another way in which employees get distracted is by constantly checking their smartphones for texts, Facebook messages and more while on the clock. Put a rule into effect that personal Internet use should be eliminated or at least kept to a minimum during the workday. This will help your employees to focus on their work and save their Internet surfing for their lunch break or after work hours.

Situate Office Space Outside of the General Path of Foot Traffic

It’s easy to get distracted when sitting at your desk and you continually see people walking back and forth around you. For this reason, employers should set up their office space so that employees are not seated within the main walkways, such as next to the reception area or break room. When you arrange the offices or cubicles in a secluded fashion, you are helping to eliminate distractions which are inevitable when the flow of traffic is close to the employee desks.

Ask Your Employees for Input

Perhaps the best way to determine what is most distracting to your employees is to simply ask them. Brainstorming with your employees as to ways to eliminate or minimize distractions will help you to have an inside look into what is really causing your employees to be distracted and which might adversely affect their work product. You don’t have to put all of your employees’ suggestions into play, but it’s a wonderful way to learn more about what may be causing a disturbance throughout the workday.

When you act to minimize office space distractions, you will not only ensure happier, more productive employees but you will benefit your company by taking the steps to make sure that the work product being turned out will be the best it possibly can be. Minimizing office space distractions doesn’t have to be a costly improvement, either. When you make simple changes, whether it be in the office space layout or by requiring employees to refrain from personal Internet use, you have a cost-effective way to improve productivity in the office.

Improve Work Productivity At Your Office

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The best way to ensure that the work product produced at your office is top-notch in every way is to create an employee-approved environment. In other words, make sure that those who are a part of your company find your practices to be most optimal to their workday. You want the people who are most affected by the work environment to have their say in what procedures are in effect. Here are four easy ways to create an employee-approved work environment and ones which you’ll feel good about bringing up with your employees for their approval.Chicago Office Space

Create a Quiet Workspace

The best way to ensure employee productivity is to create a quiet workspace. With so many office distractions, it’s vital to create a workplace where your employees can concentrate and focus on their work. In this case, an open office space layout may not always be best. If it’s possible to set up noise-blocking cubicles or even seat employees in their own individual offices, you will find that productivity will be a given and your employees are sure to thank you for that feature.

Maintain a Welcoming Work Environment

In addition to creating a quiet workspace, you also want to ensure that the office environment is a welcoming one. Eye-catching wall art and plants will create a welcoming feel to the office space. It’s also helpful if your break room is stocked with coffee and the occasional breakfast treats, which will help your employees to be comfortable and happy being an employee within your company. It will often be the little things which make a world of a difference.

Arrange the Office Space So All Amenities Are Close By

Employees also appreciate an office space layout where amenities are situated close by. Copiers, fax machines and even restrooms which are in a semi-close environment will be advantageous to employees and make their work environment a more accessible one.

Ensure That Office Furniture Is Comfortable and Useful

It’s also important to select office furniture which will be comfortable for your employees. After all, many office employees are at work 8, 10, even 12 hours a day, so you want to be sure that you create a comfortable office space where the seating is inviting, the desk setup is convenient for your workers to access on a daily basis and more. An employee who has a proper office setup, which includes comfortable furnishings which are convenient and useful, is one who will be a productive worker and an asset to your company or corporation.

Employees not only want to be appreciated in the workplace but they also want to be provided with an office setup which will offer the most comfortable and useful features possible. If your employee has what they need in their individual office space on a daily basis, they will best be able to carry out their duties and produce a work product which you will be proud to offer to your clients. In addition, by making sure your employees are comfortable, you will be showing those individuals that you are dedicated to making the workplace a welcoming and productive one.

Benefits Of Relocation vs. Renovating Your Office Space

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tenant-representation-servicesThere are times in the business world when business owners who lease office space need to either move to a new office location or renovate their current one. This can be caused by having additional employees come in or simply wanting to rearrange the current setup of the office space. When this situation arises, the question then becomes, “Should we move or renovate?” Although the decision is based on the individual circumstances of the business owner and their company, it is often a better idea to relocate rather than renovate. Here’s why:

Renovations Can Be Distracting

When an office space is undergoing renovations, while the business is continuing daily operations, the end result is a distracting situation for the business owner and employees. When you move to a new location, your company can keep operating at the first location until the move-in date arrives and then relocate when the new office space is ready. It’s hard to complete one’s work on a daily basis with construction noise going on in close quarters.

It’s Often More Cost-Efficient to Relocate

You’ll also find that relocating can be more cost-efficient than renovating. Although it may seem as if the costs aren’t too different in the beginning, as the work progresses, you’ll often be hit with new and higher-than-expected bills along the way as construction costs need to be added on from time to time. When you relocate, the cost will be straightforward and you’ll know exactly what you are getting in the way of office space.

Relocation Can Be Accomplished More Quickly

It’s also important to note that renovation can be a timely venture. When an office space is renovated, this is not a one or two-day occurrence. Renovations, depending on the extent of such, can take weeks or months to accomplish. With a relocation, you can often do this in a few days and get back to business in no time at all.

Renovation Restrictions By Building Owner Often Apply

Since you are leasing the office space and not a commercial building owner, you will have to get permission to renovate the current office space. There will also likely be restrictions in place as to what you can do with regard to renovations and you will have to abide by these restrictions according to the building owner’s wishes. With a relocation, you will be moving into the office space usually as-is, and if you do plan on changing anything within the new office space, you’ll know what you’re able to do in the very beginning, based on the language of the lease.

The decision between relocation and renovation should be a carefully-considered one, as you want to be sure to have the best possible office space and not have to deal with extra costs or timely, distracting renovations. You want your daily business operations to continue as usual, so weigh all of the factors before deciding whether it is in your best interest, and the best interest of the company, to stay at the current location and renovate or move to a new spot with a new lease.

Set Up Your Office for Success

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Your office is the place where all of your success for your business can happen. Getting set up correctly can be the difference between making it big or losing it all. Here are a few great tips to get your office off to the right start when moving or starting your business.

  • Use Resources Wisely – When deciding how to budget the money going back into your business, consider cultural and environmental factors. This includes the space in which your employees spend most of their time. An office that has high satisfaction for employees can lower the turnover of your business. It can actually be a key factor when an employee is deciding to stay with, or leave, the company.
  • Placement for Prosperity – Knowing where your office will be located in proximity to cafes, lunch places, markets and fun environments is also an important factor when choosing an office space. When your employees enjoy their surroundings, it makes it a more productive environment within your office. It can lead to employees working harder during office hours to enjoy time in the local surroundings.

When you’re looking for the perfect office space for your business, be picky. Make sure that you take the time to analyze every detail of your new space to make your budget, and most importantly, your employees happy. Looking for tenant representation services? Check out TenantAdvisors.com for more information, today and find the perfect place in the Chicago area for your business.