West Loop Fuels LaSalle Street Renaissance


Street of Chicago

As rental rates continue to rise for commercial space in the near west side, companies moving to LaSalle Street and the Loop are reaping the benefits. The Loop has been experiencing a strong push in building upgrades, amenities and renovations thanks to the success of River North and River West. The end result is a healthy inventory of updated vacant space with tremendous amenities in traditionally high-demand neighborhoods. Here are a few things to consider when selecting your next office:

Supply & Demand

Areas like LaSalle Street and the Central Loop, which historically have been seen as high-demand and high-priced, are actually offering more for the money than neighborhoods like River West, Fulton Market and West Town.

Proximity vs. Practicality

While the allure of being close to Google and McDonalds is enough for people to pay higher rents for lower quality and little to no amenities, savvy business owners are taking advantage of lower rental rates and getting centrally located spaces in great buildings.

Location Fundamentals

Real estate will always be about location. When finding the right office, 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.

218 S. Wabash, suite 280, Chicago, IL 60604


Shared Office Space

 

Description: Here is an opportunity to sublease a fully-furnished property in Chicago’s Loop. This space is a newly built loft-style office with exposed ceilings. There is a large collaborative kitchen area, 11 workstations, 3 large offices/breakout rooms, 2 small offices/phone rooms, and a lounge area.

The sublease is move-in-ready and available immediately. The least is set to expire on April 30th, 2025.

Size:2,438 SF

Cost:  $21.50/sf

Location: 218 S Wabash, suite 280, Chicago, IL 60604

What’s in a Lease? Part 2.


who can help with my office lease

Before signing a lease, you want to make sure you are happy with the terms for the entire lease duration. To do this, you must understand the internal pieces of a lease so you can negotiate favorable terms with the landlord.

  • Right to Terminate: This section of the contract describes what will happen if the contract is ended early or defaulted on, and describes the conditions for termination. Either party has the right to terminate the lease for a variety of reasons. However, one source of power you can ask for is a break clause which permits the tenant to terminate the lease without being obligated to pay the remaining rent balance should there be a timely notification of the intent to leave. This can be a great source of leverage to restructure a lease regardless of how the market has changed since the inception of the lease.
  • Surrender of Premises: A surrender of premises clause stipulates the conditions of how the premises should be returned to the landlord and what procedures to follow when the lease ends. The clause outlines the tenant’s obligations, the landlord’s rights and what happens to any property left behind. It is acceptable to negotiate for the space to be returned in broom clean condition, and nothing more. The landlord may ask for space to be returned to white box condition, but that is too much to ask.
  • Gross Lease: A gross lease is a type of commercial lease where the landlord pays for the building’s property taxes, insurance and maintenance. The gross lease can be modified to meet the needs of a particular building’s tenants, and a gross lease may require a tenant to pay utility bills. It’s important to make sure capital improvements are not passed along to tenants through operating expenses. When negotiating a gross lease, the tenant should ask which janitorial services are provided, and how often they are offered. The benefit of a gross lease is the convenience for the tenant to forecast a static expense.
  • Insurance requirement: The insurance requirement of a lease defines the lease provisions of specific insurance coverages, indemnity, restoration, self-insurance and subrogation. What makes this negotiation difficult is the ever-changing terminology and coverages of insurance. It is recommended that you have a qualified insurance broker review the coverage requirements.
  • Damage or Destruction Clause: A damage or destruction clause in a lease agreement outlines the rights and obligations of the parties to the lease in the event that the leased premises are damaged or destroyed during the term of the lease. Seek to minimize the time in which the lease can be terminated, and maximize the remedies available for the tenant.

Understanding the different terms, clauses and definitions of a lease is half the battle of negotiating a favorable lease. Make it as easy as possible to weave your way to a tenant-friendly lease by knowing the different pieces of a lease to even the playing field.

Why Your Landlord Wants You to Have Commercial General Liability Insurance


 

If you’ve signed a lease for office space or talked with any commercial landlords lately, you’ve probably been asked about having General Liability Insurance.

Why is this insurance coverage so important? Because landlords can be held responsible for anything that happens to anybody while on the property.

“While the landlord does carry insurance, in every lease, ownership requires that its tenants carry insurance as well to cover loss in their specific space,” says William Himmelstein, founder and CEO of real estate consulting firm Tenant Advisory Group. “It’s a way to spread the risk across a few different policies; and in the landlord’s case, hopefully any claims are covered before it hits their insurance.”

Click here to read the rest of the article featuring Bill Himmelstein.

Moving Your Office? You Need a Plan.


Relocating your company to a new office space is an exciting time, full of endless possibilities. Such a large undertaking will of course create stress, but proper planning in advance will save you and your business time, money and hassle.

Tenant Advisory Group has helped hundreds of companies grow their business in a new space. See below for key tips we provide our valued clients.

Build Your Team
A company relocation has too many moving parts for one person to handle. It’s important to have a solid team in place to keep track of every detail. Here are a few of your key players:

  • Involve your moving company in the planning process as early as possible to get the best estimate on your relocation timeline. Contact your furniture vendor and/or partner with an interior designer to plan the look and layout of your new space.
  • Have an in-house or on-hand technical expert who can spearhead setting up and migrating your phone and data systems.
  • Designate at least one employee as the Move Captain. This person will communicate clearly with staff regarding packing procedures, as well as what to expect in the new location.

Take or Toss
Starting fresh in a new office presents the opportunity to shed items you may not have use for anymore.

  • Before making any decisions, prepare a complete inventory of everything in your office — from the conference tables to paperclips.
  • Comb through sensitive items such as bank statements, contracts, invoices, client information, etc. Either pack items in secure filing boxes or arrange for a shredding service to take them away.
  • Get rid of unwanted electronics, computer equipment and furniture by either recycling or donation. Make sure to gather the necessary paperwork for potential tax write-offs.

Spread the Word
Let your entire network (clients, vendors, professional organizations, etc.) know that your company has a new space and address.

  • Make a list of your current clients and vendors, and notify everyone of your change of address to avoid any hiccups in business or productivity.
  • Prepare and order new stationery, business cards and envelopes to reflect your new location.
  • Contact the post office to have all mail forwarded to your new address.

For questions about how Tenant Advisory Group can make your Chicago relocation as seamless as possible, contact us today.

3 Tips to Negotiate Your Co-Working Lease


Co-working workspaces are becoming the new norm for up-and-coming businesses, offering the creature comforts of a big corporation – high-tech workstations, coffee supplies, conference rooms – at a price startups can afford. However, just because a co-working space seems to have it all doesn’t mean there isn’t room for negotiations or amendments to your lease.

Bill Himmelstein, founder and CEO of Tenant Advisory Group, has put together a few crucial components to consider before signing on the dotted line:

Amenities

Exercise ball chairs and trendy lighting are fantastic touches, but remember to factor in all aspects of your business into the monthly cost. Does it include internet access? Phone plans? Access to communal coffee and food? These amenities can be used as bargaining chips in negotiating with the landlord. Understanding what’s included in your leasing package and what’s additional is key to being budget savvy.

Flexible Terms

One key advantage to renting a co-working space is the option of a short-term lease — three- and six-month terms and even month-to-month payments can be negotiated. (Free Range in Wicker Park offers flexible 10-day passes.) This can be especially appealing to freelancers who want a stable work environment without being tied down to a long lease.

Unused Spaces

Co-working options can be found anywhere, not just with large companies like WeWork. Chicago’s many converted warehouses and vintage office buildings are full of carved out communal spaces with a plethora of opportunity. Since leases in these leasing packages aren’t usually as structured, having an expert on-hand can save some of your company’s valuable funds.

For more information about how Tenant Advisory Group can help you negotiate your co-working space lease, contact us today.

Top FAQs: #2


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2) Should “Build-Outs” be in my contract? Who pays for the build-out?

Build-Outs are required when the leased space needs to be upgraded or remodeled for the tenant’s commercial needs. Due to the major expense of any construction on a space, this is something that should be a part of the lease. The landlord can negotiate either a turn-key build-out or a flat dollar allowance in order to pay for the modifications.

 

Turn-Key Build-Out: Here the landlord will cover the entire amount of the build-out. When the landlord does agree to this, rent will often be adjusted (raised) for the possibility of steep construction costs

 

Flat Dollar Allowance: The tenant can liken this to a construction budget. A flat amount of money will be allotted to the tenant by the landlord. Any incurred costs that exceed the allowance will be the responsibility of the tenant.

 

For more FAQs, check out Top FAQs #5, #4 and #3!

Buying Versus Leasing Space: What’s Best for You?


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The decision to rent or buy a home is one in which most people approach with significant care. It’s no different when evaluating whether to buy or lease with regards to commercial property.

This is a critical decision in a company’s development and requires extensive analysis. The Tenant Advisory Group, LLC (TAG) has significant experience helping a diverse group of companies navigate this decision.

There are several important factors to keep in mind when addressing the question of leasing vs. buying commercial space. On the top level, a company will want to consider the state of their industry, their own firm’ growth projections, and the amount of capital available.

The results of this high level analysis may make the choice of buying vs. leasing relatively easy. However, if the choice isn’t clear after this review there are additional factors that will then be considered.

TAG can assist you in this process and ultimately help your firm identify the right choice for your business.

In the meantime, we have outlined some of most important advantages and disadvantages of each choice and can provide you with additional information at your request.

Leasing

Advantages:

– Flexibility (amount of space, duration of lease)

– Reduced risk (no long-term responsibility)

– Reduced responsibility (building owner worries about property)

– Easy exist strategy (can relocate as soon as lease expires)

– Security deposit (not paying buy out so saves you money)

Disadvantages

– You are not building equity

– It is not “your” space as it belongs to the landlord

– You are dependent on someone else to fix things, improve things, or deteremin if you can sublease or not

Buying

Advantages:

– Long-term investment

– Building equity

– Interest is tax-deductible

– Stability in business location

– Possible appreciation (only works for long term)

– Leasing unoccupied space (if your not occupying the space you bought, could make a profit leasing it)

Disadvantages:

– Capital intensive

– Finite allotment of space

– Possible depreciation

– Difficult exist strategy