Suburban Chicago Office Space: Tenant Improvements

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Suburban Office Space

Chicago suburb business owners who are looking for that ideal office space often find what they are looking for in an office setting. However, there are certain times when the suburban Chicago office space may not be exactly what the office space tenant needs in a commercial office.  Fortunately, landlords will usually allow specific tenant improvements to take place so that the office tenant is 100% satisfied with the office space end result. Here is what to expect in tenant improvements in the suburban office space:

Landlords May Not Allow Every Desired Tenant Improvement

When you want to add certain amenities and additions to a leased office space in the Chicago suburbs, you may know exactly what you want. Keep in mind, however, that your landlord may not allow every type of tenant improvement in their premises. After all, the landlord still owns the building and you are simply leasing it for awhile. Therefore, it is reasonable that there will be certain tenant improvements which won’t be allowed. Make sure that you thoroughly discuss these tenant improvements with your landlord and have the results of the conversation in writing so that there is no miscommunication along the way.

Tenant Improvements Can Be Pricey

Depending on what type of Chicago suburban office space tenant improvements you wish to complete, the end result can be costly.  You should decide upfront what type of improvements you want to make and be sure that you will be able to afford the tenant improvements. Some landlords will pay for tenant improvements while others will allow such improvements but have the cost be the responsibility of the tenant alone.

Certain Leases Will Accommodate for Tenant Improvements

For the lucky suburban Chicago office space tenants, there may be a clause within the office space lease which states that the landlord will pay for certain tenant improvements. This will allow the tenant to get what they want out of the office space and not have to pay the cost for doing so. A good tenant representative will be able to negotiate with the landlord and have them add this desirable clause into the final lease.

Pre-Existing Condition Clauses May Exist

For those office tenants in the Chicago suburbs who complete tenant improvements, they may need to ultimately return the leased premises to its pre-existing condition once their lease is up. These pre-existing condition clauses in the lease safeguard the landlord and ensure that the property will look exactly as it did prior to the tenant improvements. This is always something which the tenant must consider before making big changes to the leased premises since returning the structure to its prior state may be costly in the end.

Tenant improvement clauses are beneficial for Chicago suburb office tenants who want to make changes to the property. The tenant should see if the landlord will pay for such changes and whether they will have to return the property to its former state once their lease term is up. All of these things should be clearly outlined in the lease for the benefit of all parties involved in the leasing agreement.

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

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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.

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.

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.