​Millennial​ ​Values​ ​In​ ​A​ ​Modern​ ​Office​ ​Space

The millennial generation, traditionally defined as individuals born between the years 1982 and 2004. Why are they important? Well, they entering the job market and will continue to with for years to come. Let’s perspective, a child born in 1982 would have graduated college around 2005; born in 2004? Expect to be graduating and entering the workforce around 2027. 

At Tenant Advisors, we posed the question : what does this generation value in a workplace?

We spoke with millennials that recently entered the workforce to discover what inspires and fuels their passion in competitive work environments.

Data Analyst: office size 75-100 people

 “ I work at a company that has outgrown its office space, currently we’re forced to have to maximize office space by sacrificing efficiency.

A lack of common space is detrimental, the only place you have is your desk area. If you need to take a phone call, we don’t really have anywhere in the office you could step aside to.

On the flip side – the office is in a great location. It’s very convenient to hop on the El and get to work in 30 minutes.

Our office has a great view of the city, we also have great facilities available in the building. Often times I’ll take advantage of the gym”

Inside Sales: office size 750-1,000 people

“ I think my favorite thing about my office is the layout and location. I am incredibly close to public transportation and am able to utilize the CTA to get to the office quickly, my commute is usually like 45 minutes.

My office has great amenities, they have a great common areas and a nice kitchen.

What I love about my office is the open collaborative, layout.

You can talk and interact among your coworkers, being able to get advice or ask for help from someone close by is really nice.

Something I think could be improved on is the aesthetic, I think the office could be better decorated. Don’t get me wrong, it looks really nice as is, but some fresh paint or new artwork would make a big impact in my opinion. Some more colors in the office would really brighten up the place and I would argue inspire creativity “

Financial Planner: office size 200-300 people

“ A lot of the work we do is collaborative and involves usually a whole team of people working together. Our meeting rooms are great, they are linked up with great technology so we can video chat among other offices really without having many problems.

Our clients depend on us to have a quick turn around so not having to worry about this or that going wrong, knowing we have reliable equipment allows us to better tackle the problem at hand.

Something I would improve on in my office would be to reconsider cubicles. Often times I find it acting as a barrier for productivity, often sending emails to people across the room.

I understand it’s how a lot of offices have been traditionally laid out, but this doesn’t necessarily mean this is the way it needs to be, ya know?”

There you have it, a first hand account from rising young professionals. For all your Chicagoland Office Space needs, Tenant Advisors will guide you every step of the way. Give us a call today at (312) 224-8763, we look forward to hearing from you.

Chicago Office Space Lease Negotiations

Understanding Blend & Extend Leases 

Business owners who are searching for office space for rent have quite a few options available to them. Long-term leases, annual leases and month-to-month options are the most common types of leases. With that said, most leases are longer-term in the 3-7 year range, and they reflect the market conditions that were in effect at the start of the lease term. So, what happens when a company’s need for office space changes midway into its lease term? or what happens when market conditions change dramatically, but the company still has considerable time left in its lease term? Is he stuck? The short answer is: not necessarily. A relatively new type of lease has emerged which business owners have found to be advantageous to their leasing situation, and that is the blend and extend lease. These leases relate to tenants and landlords who are in a current lease relationship, and want to extend the lease for an additional term while in the midst of their current lease. When a blend and extend lease is initiated, the parties also get to alter the terms of the lease which is an additional benefit to such a lease. The following will highlight more information regarding the blend and extend office lease and cite the various pros and cons of such an office space rental agreement.

What You Should Know About a Blend and Extend Lease

The first thing which commercial property owners and renters need to know about is that there must currently be a lease in place between the landlord and business owner tenant. As the purpose of a blend and extend lease is to get an early renewal with lease term changes it goes without saying that there must be an active lease agreement at the time in which a blend and extend lease is discussed.

You should also be aware of why a blend and extend commercial property lease is desirable. Commercial office leases are often lengthy in duration and this makes altering terms more difficult as when compared to an annual lease. With that said, landlords do not like to take chances of having their office space be empty once their current tenant’s lease expires. With a blend and extend lease, tenants benefit by negotiating for a more favorable monthly rent and lease terms and landlords benefit by ensuring that their current tenant remains in the premises for years to come.

The Pros of a Blend and Extend Office Lease

There are many benefits on both sides of the lease relationship associated with an office space blend and extend lease. The landlord favors a blend and extend lease as it guarantees them that their office space will not be vacant for long periods of time. In today’s economy, office rental demand is on shaky ground as are many other business-related aspects and the landlord can have peace of mind knowing that its tenant will be in the office space for years to come. This will increase the chances that the landlord can cover the mortgage payment every month and not have to worry about paying a real estate agent to find replacement tenants for them.

For the tenant, a blend and extend lease works in their favor by providing them with the opportunity to renegotiate the lease terms and oftentimes renew the lease with a less expensive monthly rent. The rent is not the only thing which the tenant can renegotiate in a this kind of lease. Rental abatement, options to renew, expand or contract and office space improvements are also negotiable points in the new and revised lease.

The Cons of a Blend and Extend Commercial Office Space Lease

As with any negotiations, there may be some less than favorable aspects of a blend and extend lease. With regard to the landlord, although the blend and extend lease provides the landlord with a longer lease term in which the tenant is required to stay in the building, the landlord may have to accept a lower monthly rent payment as well as agree to office improvements and other concessions. As for the tenant, it may receive a more favorable monthly rent under the blend and extend lease, but it will be locked in to the office space for a longer period of time and not be able to move from the office should it desire to do so a few years down the road.

In The End A Blend and Extend Lease Is a Good Option

When all is said and done, a blend and extend lease can often be a good option for both landlord and tenant to consider. If the landlord/tenant relationship is a good one and the office building location works well for the tenant, then there really is no reason to ignore the blend and extend lease option. Even with the few potential negatives listed above, the pros often times outweigh the cons of this type of lease. A blend and extend office lease ensures that the office property remains rented and the tenant gets a better deal than it had previously. It is easy to see why blend and extend leases are becoming much more common in the commercial real estate market-place.

Chicago office space rental

Subordination & Non-Disturbance Agreements in Office Leases

Chicago office space rentalWhen an office tenant signs their commercial office space lease, it’s only natural to assume that the tenant will have an undisturbed tenancy and complete access to the premises as noted in the lease. This is often the case, however, there comes a time on occasion when a tenancy is disturbed for one reason or another. This can happen when the property has a mortgage on it and there is a lender involved. Should the property owner/landlord default on their mortgage, the lender may have a right to interject in some form. This is where a subordination and non-disturbance agreement comes into play.

What Is a Subordination and Non-Disturbance Agreement?

The subordination and non-disturbance agreement is one which will be signed at the time of the lease signing. Basically, this agreement states that should the landlord default on their loan, the rights of the tenant are subordinate to the lender. The non-disturbance portion of the agreement safeguards the tenant by stating that, even though the lender forecloses on a property, the tenancy and tenant’s rights under the lease will go undisturbed. This agreement acts as a way to cover any issues which could possibly arise in the future with a property that is in some way involved with a lender.

Is This Form of Agreement Common?

In commercial office space leasing, you will often find a subordination and non-disturbance agreement present within the paperwork. With real estate transactions such as this one, it’s important to consider all possible instances which could occur in the future and ensure that there is an agreed-upon solution stated in writing should such an instance occur. Office space tenants should not be hesitant to sign a subordination and non-disturbance agreement as it will safeguard their tenancy in the future and ensure that their lease term will go undisturbed throughout the length thereof.

The Importance of Reading the Agreement Thoroughly and Ensuring It’s Part of the Lease Agreement

When presented with the subordination and non-disturbance agreement, office space tenants should read through the agreement thoroughly and make sure that their rights under the agreement are known. A tenant representative can help the office space tenant to understand this document and explain in further detail the different components of it. With an agreement of this type as part of the lease arrangement, the tenant knows exactly where they stand should the lender choose to foreclose. It’s also readily agreed to by the lender, as the subordination portion benefits their rights to the property, especially when there is a tenant in possession of the property under the lease term.

The subordination and non-disturbance agreement is just one more necessary piece of the leasing puzzle which helps to outline the rights of the parties involved in the real estate transaction. It will not be put into the motion in most instances, however, it is vital to have this type of strategy in place should a loan default and foreclosure become an issue during the life of the lease term. Tenants should be sure to inquire with their tenant representative about any questions they may have related to this type of agreement prior to signing it.

chicago office space listings

How Financial Analysis Plays a Part in Office Lease Transactions

chicago office space listingsCommercial office space leasing consideration is a bit more in-depth than renting a residential property, for example. When leasing a home, apartment or condo, you know how much the rent costs and whether or not you will be able to afford it. For commercial office space leasing, the decision-making process is a bit more time consuming. In order to ensure that you are renewing your lease at the right location at the right cost or deciding to move your office space to a new locale to save money, you want to complete a full financial analysis to make sure that the leasing decision you make is the right one.

What a Financial Analysis Accomplishes

A financial analysis is the answer to determining what your overall cost will be to lease a commercial office space. Far from simply considering annual lease amount, there are many other factors to review in order to ascertain that the lease is a financially responsible move for you and your company to make. In addition to looking at the base rental price, you must consider factors such as increases in operating expenses, caps on operating expenses, reduced rent periods, contributions by the landlord, parking fees and more. By looking into all of these added factors, you can make the proper determination as to whether renewing your lease or moving elsewhere is the right decision to make.

How to Perform a Complete Financial Analysis

When starting the financial analysis process, you’re going to want a little help with the calculations. Fortunately, there are programs for just this type of analysis. Some of the popular financial analysis help comes in the form of ProCalc, LeaseMatrix and more. By using these programs, you can get a correct number, as well as get the job done with ease. When performing a financial analysis, you’ll be considering the various features listed above, such as base rental payments, operating expenses and all other costs and considerations which will provide you with a final determination as to whether or not your leasing arrangement will be of benefit to you and your company.

What to Do with the Financial Analysis Results

When the tabulations are complete, the final step is knowing what to do with the results. You want to look at the bottom line and determine if this number will fit within your budget or not. It will be helpful in making the decision whether to stay and renew your commercial office space lease or lease an office at a new location.

If you have a tenant representative, your decision will be made much more easily. This advisor will go through the numbers with you and help you to decide which leasing option will benefit you the best. Making the right decision is a matter of going through the financial analysis, step-by-step, and figuring out whether it pays to stay in your current office space and renew your lease or move on to a new location which will be more cost-effective and better for your company overall.

Wheeling Commercial Office Space

Wheeling, Illinois is a village located in Cook and Lake counties. With a population of 37,648 per the 2010 census, Wheeling has a good residential base, which is a selling point for businesses looking to lease office space there. Located 30 miles northwest of Chicago, this suburban location is ideal for those business owners who wish to be outside of the city yet close enough to head into town when they so desire.

Getting Around Wheeling with Ease

Wheeling transportation options are plentiful. You can travel by train, bus or car, and get where you need to go with ease. The Metra line has a stop in Wheeling and the Pace bus line offers service throughout Wheeling as well. For drivers, there are many local roads which provide easy ingress/egress as well as I-294 which runs close to the village. Having multiple transportation options will help to get your employees and customers to and from your business. Therefore, ensuring that ease of access exists is a must for business owners contemplating a new office space lease.

Things to See and Do in Wheeling

Business owners will appreciate that there are plenty of things to see and do in Wheeling. Shops such as Wheeling Flowers, Walgreens, Lynn Plaza Shopping Center and Radio Shack are some store options for individuals, especially business owners and their employees who wish to do a little lunch break shopping. For dining options, Wheeling offers restaurants such as Rise N Dine Pancake Cafe, Joe’s Pizzeria, Cooper’s Hawk and Saranellos, to name a few. These options will provide dining and shopping offerings for the business owner and employees before and after work but also for customers of the business.

For those who like to get outdoors, the Wheeling Park District offers 19 sites to choose from in the way of recreation. There is also the Chevy Chase Golf Course, Family Aquatic Center, Community Recreation Center and an outdoor ice rink in the winter.

Why Your Business Will Fit in Well in Wheeling

Wheeling is a village which will welcome your business, no matter what industry it may fall within. There is always room in Wheeling for business expansion and leasing Wheeling commercial office space there will help you to set up shop and start bringing in customers and clients. There is also a good, solid customer base in Wheeling. Not only will your business gain customers who are Wheeling residents but also those who live outside of town and come into Wheeling to do business.

Get Started Finding Your Wheeling Office Space

There has never been a better time than the present to open your business doors in Wheeling. An easy way to get started is to contact a tenant advisor to help you with the search. Not only will this tenant representative point you in the right direction with regard to a commercial office space lease but they will also help you to get the best lease terms when negotiating with your future landlord.

Wheeling is the ideal spot for your business, large or small.