WeWork’s New Tenant Rep Service Offering Will Hurt their Business


When coworking companies came onto the scene, they quickly became a tool for commercial real estate brokers to help young and small business owners find a temporary space. However, this symbiotic relationship may be in jeopardy with the announcement of WeWork’s tenant representation services as brokers will be far less likely to bring their clients to a competitor. The coworking business’ move to diversify their service offerings may cause harm to their referral partners’ business and therefore, maybe also their own.

It is a common practice for tenant representative brokers to bring small business owners to coworking spaces while these entrepreneurs grow their company, as a coworking lease is a great short-term solution. Once the business grows to a certain level, the owner will want to find a permanent spot with their own branding and more privacy. However, instead of contacting the broker who brought them to WeWork, this entrepreneur may now decide to use a WeWork tenant representative.

Because of this conflict of interest, brokers will no longer be inclined to bring tenants to WeWork, as they will be consistently working against their industry referral partners to grab the business of these growing entrepreneurs. Unfortunately for WeWork, this could also contribute to a loss in business — one that would only add to the $900 million loss already reported in 2017.

Recently, Moody’s dropped its rating of WeWork from the lowest possible credit rating to six grades below its junk credit rating. The reason for its harsh assessment is due to WeWork’s $702 million of unsecured debt and negative free-cash flow, despite its growth from raising capital. According to Tenant Advisory Group founder and CEO Bill Himmelstein, the strategy to open up a new line of service is likely in response to its disadvantageous earnings and credit rating that hurt the company’s chance at securing a new round of funding.

WeWork’s idea for a new service line may make sense as a short-term strategy, but it overlooks long-term consequences that could have a catastrophic impact.

Bill Himmelstein Talks Luxury Amenities With The Chicago Tribune


The Chicago Tribune reached out to Bill Himmelstein to discuss the rising trend of luxury amenities and its effectiveness in attracting renters.

Click here to read the full article.

Mid-Summer Networking With Tenant Advisory Group


Chicago entrepreneurs gathered at Tenant Advisory Group’s July Executives Breakfast and Luncheon to connect with other professionals and share their insight.

During the event, attendees were asked about “the biggest mistake they have made as a business owner.” Here are a few of the many responses:

Rick Gray, CEO, TalentRise: I did not do enough homework on the people driving the revenue of the business. I went too hard too fast and needed to step back and rebuild trust. I wanted to change the mentality of “my score matters” to “our score matters.”

Morrie Elstein, Vice President, Cendrowski Corporate Advisors: I didn’t hire the right partners, and I needed to make leadership changes, as the wrong people were selected. I also would have done more thorough background checks.

At the Executives Luncheon, guests were asked what they see as “the biggest threat to their industry and how they plan to overcome it.” Here are some of the responses:

Josh Strauss: Robotic advisors and passive investing on your own are the biggest threats. If there is any complication, there needs to be a specialized advisor. Passive investing works well in a growing market.

Joanna Sobran: The biggest threat is ourselves. We need to find a way to merge some of the various business lines to focus momentum and so they become really good at everything they do.

Thank you to all who attended!

If you’re a business owner with 20+ employees who is interested in attending future TAG events, please email Bill Himmelstein at Bill@TagCommercialBroker.com.

TAG Executives Breakfast Guest List

Mason Awtry, CEO, Rightsize Facility

Craig Castelli, Founder & CEO, Caber Hill Advisors

Mike Cavanaugh, Managing Partner, FinTech Ranger

Paul Detlefs, President, The Prestwick Group

Kenny Estes, Co Founder, West Loop Ventures

Grant Gochnauer, Co-Founder & CTO, Vodori

Matt Green, Co-Founder, VentureScale

Tom Gregg, President, Vehicle Acquisition Network

Richard Grossi, CFO, Kensium

Josh Haid, Managing Partner, Women’s Divorce & Family Law Group

Rhonda Jensen, President, Jensen Court Reporting

Mike Kupfer, President & CEO, Black Diamond Solutions

Guy Logan, CEO, Logan Consulting

Stan Logan, Chairman, Quality Back Office

Jim Macdonald, Managing Director, First Analysis

Andy Mack, CEO, SnapMobile

Joel Manning, Managing Partner, Manning Silverman

Joseph McCoy, Partner, Riley Safer Holmes & Cancila

Scott Nicholson, CEO, KO Business Solutions

Grigory Pekarsky, Managing Broker & Partner, Vesta Preferred Realty

Ben Renda, CEO, Global Capital

Ron Repking, Founding Partner, Sriracha Partners

Mitchell Roth, Managing Partner, Much Shelist, P.C

Karen Sanders, President, Sanders IT Consulting

Allan C Sutherland, Founder, President and CEO, In-telligent LLC

Rosemary Swierk, President, Direct Steel & Construction

Jon P. Talty, AIA, Chairman & CEO, OKW Architects

John Udelhofen, CFO, One North Interactive

Jason Van Zant, Managing Director, Keystone Capital

TAG Executives Luncheon Guest List

Jeff Asperger, Partner, Meltzer Purtill & Stelle LLC

Rory Dunne, Founder and Co-Managing Partner, Karbal Cohen Economou Silk & Dunne, LLC

Morrie Elstien, Cendrowski Corporate Advisors

Jessica Freiburg, Managing Partner, Sassetti LLC

James Gustin, Founding Partner, Fig Media

Judy Hogel, Executive Director, Chicago Family Business Council

Jonathan Rothstein, Senior Vice President, MB Financial Bank

David Stolarek, Senior Partner and Co-Founder at Porcaro Stolarek Mete Partners, LLC

Josh Strauss, Co-CEO, Pekin Singer Strauss Asset Management

How to Find a Coworking Space


Coworking spaces can be the perfect solution for a variety of working scenarios — from a solo entrepreneur just starting out to an executive from a large corporation seeking a change in scenery. Much like the businesses they serve, no two coworking spaces are the same. In fact, there are many aspects to consider when selecting a coworking space, including amenities, cost, location and clientele.  

Assess Productivity Pitfalls

When searching for a coworking space, look for one with an atmosphere that is conducive to your individual company’s productivity. Since there will be many people working in close proximity to your “office,” your employees could become distracted. Take a look around the space before signing a lease to see what other businesses are doing and whether or not their day-to-day work is too loud for you and your staff.

Check Networking Opportunities

The professional composition of the coworking office is another factor to consider, as networking can be a large benefit. A space full of professionals from different industries can expand a network fast, providing a budding business with new opportunities and ideas. Many coworking offices host happy hours, workshops and other events to build and foster relationships among tenants.

Investigate Growth Potential

The amenities a coworking space offers can really set it apart from the other options. While a brand new startup may be able to get by with a desk and laptop, a growing business needs additional technology, storage and multiple desks. Young companies expand fast, so make sure the selected coworking space can accommodate a little growth until the business is ready to lease its own office. Additionally, the space should be able to meet the needs of the company, such as meeting rooms, private booths, printing and other professional necessities.

Coworking spaces offer leases with much shorter terms than traditional office spaces, but that doesn’t mean you should rush in to sign. Request a day pass so you can ensure it will be a good fit. Pay attention to the amenities, the other tenants and what the space may be lacking to ensure it meets the needs of the business. This is the time to uncover potential problems, such as Wi-Fi reliability or overall space maintenance.

Conducting thorough due diligence prior to signing a coworking lease is critical, as the office will play a large role on the productivity of a business. Create a list of what is essential to the company, and verify the space can meet those needs. Selecting a coworking office may seem like an easy decision, but it should be taken seriously, as it can either improve or harm productivity.

180 N. Wabash Ave. Chicago, IL 60601


 

Description: Here is an opportunity to sublease an open-loft office space (ideal for tech or creative companies) right in Chicago’s Loop. This office is fully-furnished with all new, modern furniture including higher desks and benching. The space features a large conference room, a reception and waiting area, one private phone room, a kitchen and break room, 36 workstations and two offices, one large and one small.

The sublease is move-in-ready and available immediately. The lease is set to expire on January 31, 2023. However, the term is negotiable.

Size: 5,473 SF

Cost: $26/SF Gross

Location: 180 N. Wabash Ave. Chicago, IL 60601

20 N. Clark, Suite 2620, Chicago, IL 60602


 

Description: Here is an opportunity to sublease a fully-furnished property in the heart of Chicago’s Loop. The office has a great view of downtown, new corridors and is a class-A building in a business-central location. The space features two main offices, three breakout rooms (which can be used as smaller offices), one conference room, a break room, 16 cubicles, a reception desk and waiting area.

The sublease if available now with a term ending December 31, 2026.

Size: 3,011 SF

Cost: $32/SF 

Location: 20 N. Clark, Suite 2620, Chicago, IL 60602

410 N. Michigan Ave. 12th floor, Chicago, IL 60611


Description: Here is an excellent opportunity to sublease a beautiful, newly built space. Located within a larger company’s space, the fully furnished office includes a shared conference room and kitchen area. There is an option for signage at the entrypoint. The space includes four offices and eight workstations, and it has an asking price of $35/SF.

The sublease space is available now with up to a one-year term, and the potential to negotiate a renewal.

Size: Four offices – 627 SF; eight workstations – 362 SF; total size (including circulation) – 1,727 SF.

Cost: $35/SF

Location: 410 N. Michigan Ave. 12th floor, Chicago, IL 60611

How to Find the Right Office for a Fast-Growing Startup


The rapid growth of a startup causes changes to come quickly, which makes it challenging to find an office space that will grow with the business. When beginning the search, consider the projected growth, business plan and the needs of the company to find the best suitable space.

Growth

Young companies experiencing hockey stick growth will quickly find themselves with an overcrowding issue, especially if they didn’t plan ahead during the search. Plan for an extra 10 – 20 percent of space to prevent overcrowding in the future. In doing so, you’ll save money by avoiding lease termination fees, as well as eliminate the hassle and expense of subleasing and seeking a larger space before the lease expires.

Landlord

Being able to grow within a building or a landlord’s portfolio is extremely important. Seeking space in a smaller building, like the ones typically found in River North and River West, can be quite limiting, especially as many of those landlords only own one property. Leasing from a larger landlord, like the ones found in the Loop, provides a tremendous amount of flexibility when the time comes to expand. A larger building, or office portfolio, allows that landlord to easily relocate a growing tenant to accommodate their expanding space needs.

Location

Real estate will always be about location. When finding the right office for a startup, consider where it’s located in proximity to employees, current clients, potential clients and vendors. Remember that if the space is out of the way, it will make it difficult for prospective clients to find the business. Location also plays a role in employee retention and morale, as well as talent acquisition.

Needs

When launching a new company, one important aspect is the cultivation of its culture and the office needs to reflect and reinforce it. A financial services startup may need a more structured environment with more private offices and sound proofing. Whereas a creative firm will want an office with more open spaces for collaboration. Additionally, confirm if the space will be able to accommodate the specific needs of an industry. For example, a company with heavy IT needs will want a space that is able to power and protect all of the equipment.

Finding the right office for a startup will build a solid foundation for future growth and success. Remember that having an experienced commercial real estate broker involved from the beginning of the process will save both time and money. Tenant Advisory Group has worked with a variety of growing startups and is happy to share how they have successfully handled the needs of budding businesses.

Mid-Summer Networking With Tenant Advisory Group


The June Executives Breakfast and Luncheon offered a constructive environment for local Chicago entrepreneurs to broaden their network. Attendees had the opportunity to share ideas, experiences and business advice with one another.

At the executives breakfast, guests were asked “what they have done, or stopped doing, that has increased their productivity.” Here are a few of the responses:

Mason Awtry, President, Rightsize Facility: I syndicate myself through technology and only read emails a few times a day to stay productive. Someone else also reads my emails to distill it down. I also have technology-free Fridays and have someone run my social media. This helps me be more present in the moment.

Jim Anderson, President, Switchfast: I implemented traction to increase productivity. I also have a Friday afternoon calendar reminder to pick three things to get done next no matter what.

Attendees at the Executives Luncheon were given the topic of “best productivity practices and how to best sift through the noise.” Here are some of their responses:

Jeff Asperger, Partner, Meltzer, Purtill & Stelle: Build constant relationships with clients and people you’re working with, get to know them. Use the telephone and cultivate relationships.
Delegating is also very important. Set a good example and be a leader.

Rob Klein, Managing Partner, Klein Paull Holleb & Jacobs, Ltd.: Be hyper efficient, I have a to-do list every day. Create templates of everything you can and use software to be technologically advanced. It is also best to hire people that are smarter than you.

Thank you to all who attended!

If you’re a business owner with 20+ employees and are interested in attending future TAG events, please email Bill Himmelstein at Bill@TagCommercialBroker.com.

TAG Executives Breakfast Guest List

Jim Anderson, President, Switchfast

Mason Awtry, President, Rightsize Facility

Jon Berbaum, President, Highland Solutions

Bob Berland, President, Berland Communications

Atish Doshi, Founder, The Black Sheep

Kenny Estes, CEO, West Loop Ventures

Gregory J. Fine, FASAE, CAE, CEO, CCIM Institute

Scott Glickson, Managing Director, PURSANT, LLC

John Gotschall, CEO, Coaching Financial Concepts

JC Grubbs, CEO, DevMynd

Jerry Holisky, Managing Partner, Aronberg Goldgehn

John LaRoy, President, CoachVend

Daniel Levin, President, Liventus

Guy Logan, CEO, Logan Consulting

Scott Markman, President, The Monogram Group

Victoria Rock, President, Victoria Legal & Corporate Services

Jim Taylor, CEO, Launchways

Ken Thompson, Managing Director, Level X Consulting

John Udelhofen, CFO, One North Interactive

Jason Van Zant, Managing Director, Keystone Capital

TAG Executives Luncheon Guest List

Jeff Asperger, Partner, Meltzer, Purtill & Stelle

Joe Brocato, Partner Gozdecki, Del Giudice, Americus, Farkas & Brocato LLP

David Diamond, Managing Partner, Kutchins, Robbins & Diamond

Troy Ellis, VP of Finance, Aparium Hotel Group

Morrie Elstein, VP, Cendrowski Corporate Advisors

Mike Garelli, CEO & Founder, Marco & Associates

James & Michele Gustin, CEO & President, Fig Media

Elizabeth Hodos, Founder / CEO, Hodos Consulting

Steve Jakubowski, Shareholder, Robbins, Salomon & Pratt

Robert Klein, Managing Partner, Klein Paull Holleb & Jacobs, Ltd.

Robert M. Lanigan, Executive Director, Morgan Stanley Private Wealth Management

Dan Porcaro, CEO, PSM Partners

Mark Rickmeier, CEO, Table XI

Jonathan Rothstein, SVP, MB Financial Bank

Gregg Salkovitch, CEO, Rightchoice Resources

Joanna Sobran, CEO, MXOtech

Roch Tranel, CEO, Tranel Financial Group

Bill Himmelstein Featured in Emagispace


The latest movement in office design is uniting the benefits of both the open floor plans and private offices. Emagispace reached out to Bill Himmelstein for advice on how to balance the two designs to create a space that promotes independent and collaborative productivity.

Read the articlehere.

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