Rosemont Office Space

by Uncategorized

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.

In Today’s Office Space, Are Cubicles Or Open Work Spaces A Good Move?

by Uncategorized

Office space setups vary greatly from office to office. Some office buildings are a large collection of cubicles amongst the various floors while other office buildings have primarily individual offices to accommodate the business professionals. For those offices where cubicles are a common sight, it may be in the commercial office space owner’s best interest to consider whether these seating areas are right for their employees.

Here are a few things to know about cubicles in today’s office space:

Distractions Are More Apparent With Cubicles

When you have a cubicle setup within the office, you’ll find that your employees tend to get distracted more easily. The constant foot traffic, conversations and office machinery noise will interrupt your employees in their daily work and make it less likely for them to concentrate. When you have individual office space and less cubicle-like structures throughout the office, you’ll find that your employees are more productive and happier while accomplishing their daily work.

Cramped Setups Often Cause Work Disruption

An employee who is comfortable at work is one who will get more done throughout the day, and do so with peace of mind. Cubicles often equate with cramped setups and leave your employees looking for extra room, not only for their belongings but to allow them to sit easily and comfortably. Consider taking down the confined walls of the cubicle or expanding the walls so that it is more like a single office space but not completely closed in like one. You’ll find that your employees work with greater ease, and a more positive attitude as well.

Cubicles Are Not The Best Health-Wise For Your Employees

Cubicles hinder mobility and, for this reason, may be one of a variety of contributing factors related to certain health conditions. Those who work in constricted spaces every day are less mobile, less active and may be more likely to be at risk of experiencing various health conditions, such as Type 2 diabetes, heart conditions and more. This sedentary work setup will make it easier for the employee to stay seated too long and not be as mobile as others who have their own office or are located in a more open setting where they are able to move around more often.

Making the Decision to Omit Cubicles

Many business owners like the aspect of cubicles because they allow the employer to fit a good amount of employees within the office space and provide each employee with a bit of their own private space, even though it’s not a completely closed-off office area. However, if possible, it may be wise to redesign the office in a cost-efficient manner to thereby eliminate the cubicles and produce a more employee-friendly setup.

Some employers may like to make all executive decisions without consulting their employees while others may be more open to employee input on office space layouts. If you fall within the latter category, provide your employees with a few possible office space layout options and ask them which office space layout works best for them and the reasons why this is so. By having this information, you may find that cubicles should be eliminated, or maintained, and know which layout will be best suitable for your employees and provide them with a seating area which allows them to be most productive and content.

Office Space Distractions – How To Minimize These

by Uncategorized

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.

Open Space Plan; Will This Work To Your Advantage?

by Uncategorized

Office space settings have evolved over the years. In the past, business owners were used to having more private office spaces, where walls and doors separated space into individual offices. Now, many business owners are exploring a more open office space plan, where co-workers are in closer proximity to one another. But, the question is often asked, whether this type of office space setting is a truly advantageous one or not. By answering the following questions, you’ll be able to pinpoint whether or not an open office space plan will work well for  your company.Shared Office

Will an Open Office Space Plan Suit Your Employee Size?

Open office space plans will work with certain employee sizes but not others. Before leasing commercial office space with an open layout, you need to consider whether your employee size will work with such an office setup. Frequently, when you have too many employees, who are bunched together in an open office space, the distractions are too apparent and will be reflected in the work product.

Does Your Type of Company Agree with An Open Office Space Layout?

It’s also vital to consider what type of company your entity is, with regard to figuring out if an open office space will be a wise choice or not. If your employees are often on phone calls and need to be in an office environment where they have quiet work time, an open office plan is one which business employers may avoid in order to produce the best work product for their clients.

Will Your Employees Be Able to Concentrate and Work Best In This Type of Setting?

One of the primary concerns for employers is to offer the best type of setting in which their employees can work and be productive. Although open office space is sometimes chosen by employers so that the employees can work more as a team and not be isolated from one another, or it simply may be a situation where the office building is set up as an open space layout already, there are times when an employer would rather not have their employees set up in this type of office plan.

Examining Your Options

Before you lease commercial office space, you’ll need to examine the options. Determine whether an open office space plan is suitable for your employees and see what’s available in the way of office space leases. It’s extremely important to examine the options before signing a lease because if you decide to lease an office with an open space floor plan and you later decide that this was not a wise move, you are stuck with that type of office environment until your lease term expires. Considering your office space options right in the beginning will help to ensure that you select the right type of floor plan and lease an office which suits your company and employees.

There are pros and cons to open office space plans and it’s up to the business employer to find an office space setting which is suitable for their office employees and company/corporation.

Benefits Of Relocation vs. Renovating Your Office Space

by Uncategorized

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.