Posted on June 23rd, 2021
The US office market has been dramatically transformed by the changes to work practices and mobility restrictions implemented throughout the course of 2020 and early 2021. Whilst it was predicted that the market would slowly rebound starting in recent months, the demands of office occupiers will have changed substantially since the start of the COVID-19 pandemic. Below is a brief overview of the main things to look for in an office space during the second half of 2021.
Flexibility remains a key consideration when choosing an office, not only in terms of lease terms, but also office layouts. Many office-based companies are still unsure about their ability to retain staff in the face of reduced revenue, combating this uncertainty by implementing rotating shifts or flexible work hours, two factors which have ultimately led to businesses struggling to identify the total headcount in the office at any given time.
This uncertainty will lead to an increase in demand for modular spaces that can be adjusted depending on the number of people present in the workplace. These kinds of dynamic layouts have been an option for several years, often going hand in hand with trends towards multi-functional office spaces. Some of the main elements that typify flexible workspaces include:
- Blurred indoor to outdoor transitions.
- Movable walls and room dividers.
- Lightweight or mobile office furniture.
- Adjustable or movable lighting.
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Posted on April 22nd, 2021
A sublease is an agreement between a party who already hold a lease to a property and a separate party looking to rent the property in question, whether that be partly or wholly. For example, a business who leases five floors of office space in a building may look to sublease one of those floors, in the event that they downsize their workforce prior to the end of the initial lease. The party who holds in initial lease is known as the sublessor, whilst the third party looking to occupy a part of the leased space is the sublessee.
How to Sublease
The first step is to check whether you need your landlord’s written permission to sublease a property. This should be outlined in your lease agreement. If subleasing is permitted, the agreement may also specify whether you’re required to give notice to your landlord.
Next, make sure you’re familiar with the legal aspects of subletting in your area, since every state has its own sublet laws that take precedence over lease agreements. You can check state-by-state details here.
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Posted on March 22nd, 2021
There are certain terms you need to be familiar with when renting commercial property in the United States. Here is a list of the most important key words, in alphabetical order.
All-inclusive space is available at a fixed fee and typically gives tenants access to equipped workstations, admin/reception support, and meeting rooms. Utilities, janitorial services, and security are usually included.
Office space is classified into three classes depending on quality standards and the amenities on offer.
Class A space is considered best-in-class and is usually located in new buildings that feature the highest standards of construction, design, and amenities. These offices are typically found in prime business locations.
Class B space offers a functional standard of accommodation to office-based businesses in need of well-maintained space at a reasonable price.
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Posted on February 25th, 2021
In a previous blog post we examined the performance of the commercial real estate market in some major US cities. This is the second article in this series, which uses data from late 2020 and early 2021 to examine vacancy and supply rates in cities such as Los Angeles, Chicago, Atlanta and Houston. These statistics illustrate the impact of COVID-19 on the commercial property rental market, as well as the types of properties that are holding strong in the face of negative trends.
Los Angeles is a hub for creative, media, and entertainment companies, many of which are office-based. The city’s proximity to major cargo ports makes it convenient for logistics and distribution businesses, both of which have kept the industrial real estate market strong.
- Vacancy rates in downtown Los Angeles are 21.5%.
- In Q4 20202, there was more than 5.5 million square feet for vacant space, with 3.4 million feet being in the Financial District.
- The majority of vacant inventory involves Class A offices.
- Supply increased by more than 2 million square feet in the past 12 months.
- No new supply is expected to enter the market as no projects are currently under construction in the CBD area.
- Vacancy rates average 22.5% outside of the CBD, however, they reach 56% in the Fashion District.
- Vacancy rates are just under 18% in the Greater Los Angeles area.
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Posted on February 11th, 2021
With a market size of nearly $900bn, the United States has one of the world’s largest commercial real estate markets, coupled with some of the most desirable business locations to match. This post serves as the first part of our examination into the US market’s performance based on data from Q4 2020 and Q1 2021.
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Posted on February 6th, 2021
Tech Square is a rapidly developing neighborhood covering a total of approximately 8 acres. The area is located in Midtown Atlanta, between 3rd and 8th Streets in their intersection with Williams and West Peachtree. Approximately 3 miles north of downtown Atlanta, Tech Square can be accessed via bike lanes, mass transit, and two interstate roads.
The development of Tech Square is part of a revitalization project that has been transforming the face of Midtown since the early 2000s. Today, the area is known for its bustling character and high business density, especially in the creative and tech sectors.
The creation of this new district has put Atlanta’s office market in the spotlight. The city is now considered a robust secondary market with strong fundamentals and millions of square feet under construction. The largest sub-markets are the CBD, Midtown, and Buckhead. Approximately half of Atlanta’s total office inventory is Class A space, which is particularly abundant in Tech Square.
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Posted on January 27th, 2021
Commercial real estate was one of the hardest hit sectors following the coronavirus outbreak in 2020. The pandemic and the measures taken to curb its spread brought significant changes to office-based workplaces, driving a sharp and sudden increase in remote work practices. The most immediate consequence of this shift was a softening in rental activity due to the decreased need for physical office space in the short-term. As a result, 2020 ended with a marked decline in take-up volume and an increase in office vacancy rates across the nation.
The United States office rental market entered the new year in a scenario marked by declining rental rates and compromised fundamentals. As we move further into 2021, these trends are likely to remain in place and some markets may begin to feel the full impact of the economic crisis, whereas others will prove more resilient.
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Posted on January 22nd, 2021
The United States has a long history of being at the forefront of architecture. In fact, the world’s first modern skyscraper was built in the city of Chicago in 1885. That decade saw impressive buildings built to reach for the sky, mainly in cities that were bustling with trade and business activity.
Many of those buildings still stand tall, along with a wide range of others that have been built over the years. The US cities with the highest density of skyscrapers include:
- New York, which ranks third in the world due to its skyscraper count, with more than 280 high rises of 150+ meters.
- Chicago, also in the global top 10, with 126 skyscrapers.
- Miami, with 54.
- Houston, with 39.
- Los Angeles and San Francisco, with 26 and 25, respectively.
- Boston and Seattle, with 21 each.
- Las Vegas and Philadelphia, with 14 and 13, respectively.
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Posted on January 11th, 2021
The office can be a stressful place at times, particularly when deadlines are looming and clients are expecting results fast. These stresses can result in negativity, tension, anxiety, and an overwhelming sense of dread, feelings which can ultimately impact productivity and mental wellbeing. Companies across the globe have worked tirelessly to combat these workplace stresses, introducing comprehensive strategies to improve the wellbeing of their employees and cultivate a healthy working environment. Introducing pets into the workplace is one such plan that can, if implemented correctly, positively impact employees by improving morale, reducing stress, easing anxiety, and increasing job satisfaction.
Amazon is a prime example of a global company that has successfully introduced pets through their long-standing tradition of bringing dogs into their Seattle headquarters, a space which is now home to as many as 7,000 dogs on any given workday! The example set by large companies such as Amazon has inspired countless other businesses to adopt similar initiatives, resulting in pets becoming increasingly common in the workplace, particularly in millennial-driven organizations and creative offices that encourage collaboration.
But what exactly do you need to know before introducing your furry friend to the workplace and what benefits or downsides can come from bringing your pet to work?
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Posted on January 5th, 2021
There are several types of office space in the USA. These properties are classified according to their quality standards and amenities, using the classification system developed by the Building Owners and Managers Association. This system establishes three main types of office space: Class A, Class B, and Class C. Here are the defining features of each Class:
Class A Office Space
These properties are characterized as having the highest quality standards, amenities, and fixtures. Common features include top-tier HVAC and lighting systems, the latest telecommunications infrastructure, and often have unique design or architectural traits. Because of their high standards, Class A offices are typically (but not always) in new or trophy buildings with high-quality road and mass transit connections. Location also plays a role in Class A offices, as they are often located in sought-after areas such as Capitol Hill, Downtown Los Angeles, and The Loop in Chicago.
Class B Office Space
Class B properties are a middle-of-the-road option for office-based businesses. They are a step below Class A properties in terms of design, systems, and infrastructure, but they are still functional spaces that can accommodate a wide range of office operations. Depending on their location and potential, some Class B buildings are acquired by property management or investment firms and refurbished to Class A standards. Many of these offices are located in buildings that are between 10 and 20 years old.
Class C Office Space
Class C offices are typically located in older buildings (20 years+) outside of the CBD or other highly sought-after business areas. These properties may have outdated infrastructure, fixtures, and amenities, with some requiring partial renovation.
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