City vs. Suburban Office Space For Rent

City vs. Suburban Office Space For Rent

When deciding where you want to rent an office space for your company, you essentially have two options to choose from – an urban office in the city, or a more relaxed suburban campus. There are pros and cons to both options, and what works for one company may not work as well for another. Here’s what to keep in mind when deciding between an urban or suburban office space for rent.

Millennials Love Urban Spaces

One of the biggest arguments for keeping your office in the city is simply that millennials love living and working in urban areas. An increasing number of millennials are choosing to abandon their cars in favor of public transit or rideshare services, and it’s easier to do this in a downtown area. They also tend to enjoy living and working in areas with a vibrant community and lots of fun things to do. While there are some suburban locations that offer these things, it’s easier to find them in a big city. And as the millennial generation gets older and are becoming more experienced and valuable employees, choosing an office in an urban area can help you recruit them. It’s also worth noting that many older employees are moving back into the city after their kids move away to college, so urban office rentals will appeal to them as well.

Suburbs Are More Affordable

Although urban spaces are very desirable right now, offices in the suburbs are much more affordable. You’ll pay significantly less per square foot for office spaces in the suburbs when compared to office spaces in urban areas, which are much more expensive. Suburban offices for lease are also typically larger, and in some cases you’ll even get better amenities for your money. For example, in a suburban building, you might have more room for an open office plan or even a large break room for your employees. In the big city, where your space is limited, you might not be able to offer the same quality of space. You should also keep in mind that most big cities charge income taxes on the businesses there, but many suburban towns do not. If you can find an office in an area that does not charge income taxes, it will dramatically increase your company’s overall revenue.

The Parking Conundrum

Another thing to take into consideration when choosing an office space is the parking. If you live in an area where most people take public transit, then this won’t be a problem. However, if most of your employees like to drive to work, then the parking will be just as important as the office space overall. In big cities, many offices don’t have their own parking garages. This requires employees to find street parking and leave their cars in a vulnerable position, or pay for expensive parking garages. Suburban offices, on the other hand, often offer free parking in large, secure lots. In fact, they often have so much parking that your company will have spots for guests. If most of your employees drive, they will appreciate having designated parking spots.

Ultimately, it’s going to depend on your company and what makes the most sense for your needs. You will need to decide what features are most important to you when choosing a commercial property for rent. However, there are some strong benefits to working in suburbs like Clifton Park, NY that many companies don’t consider. If you’re on a budget or just have employees that love suburban living, you might be pleasantly surprised by how well a suburban office space works for your needs.

Featured Image Credit: Clker-Free-Vector-Images  / Pixabay

Growth of Gig Economy a Boon for Clifton Park Office Rentals

Growth of Gig Economy a Boon for Clifton Park Office Rentals

If you have been toying with the idea of becoming a freelancer and entering the gig economy, you are not alone. Clifton Park office rentals, especially ones that cater to freelancers, have been increasing in popularity. In fact, statewide, New York is known to have the highest number of freelancers in the U.S., with most workers offering technical or professional expertise.

Any time a change in labor this significant takes place, one has to wonder if the trend is here to stay. As an individual looks for a small office space for lease Clifton Park NY or across the region, he or she may have a moment of pause before signing the rental agreement. It’s a big step to quit your day job. Do you stay in a situation that requires you to commute to an office you hate where you work 9-to-10 hour days? Or do you continue your search for Clifton Park offices for rent and begin life as a freelancer?

Even though working as a freelancer is not without risk, and some skills are more highly compensated than others, you can rest assured that the gig economy does not seem to be going anywhere. Find that Clifton Park commercial property for rent. Buy fewer suits and more jeans. Have “the talk” with your boss, and go for it.

Here are six reasons why the gig economy has created a boon for Clifton Park office leasing.

1. Freelancers are becoming easier to find.

According to a study called the Future Workforce Report from Upwork, 59% of U.S. companies are using freelance workers and remote workers to complete projects. Upwork and other freelancing websites are the reason for this trend.

Upwork, Freelancer, and Fiverr are platforms that connect business leaders to skilled workers. In most cases, the freelancers can be paid hourly or by the project.

By using these websites, business owners can hire anyone to do anything. You can hire writers, designers, artists, back-up singers, and songwriters. You can also hire webpage designers, computer programmers, lawyers, architects, and project managers. Freelancers even complete personal projects as well. New brides hire freelancers to complete hand-written thank you notes to acknowledge wedding gifts, and individuals hire freelancers to write their life stories.

Businesses large and small benefit from being able to easily find freelancers with specific skills. As you contemplate entering this gig workforce, do your research to determine if working through a freelancing platform would be right for you. You may also consider branching out on your own to find your own clients.

2. Companies are benefitting from hiring freelancers and remote workers.

According to Forbes, 66% of large companies that hire freelancers are doing so to lower labor costs. Hiring an employee is an expensive endeavor. Besides the expenses associated with onboarding and training a new hire, companies also have to pay for workers’ compensation insurance, health insurance, and technology.

Also, businesses located in less popular locations may have trouble finding highly skilled employees within the local workforce. That is why a company located in rural Missouri is more than happy to pay a highly-skilledcybersecurity freelancer who is looking for a Clifton Park office space for rent.

It makes economic sense for a company to hire a freelancer. That’s another reason that the gig economy is here to stay.

3. Freelancing is a great way to work.

As more people discover the benefit of working as a freelancer, there will be more demand for Clifton Park commercial space for rent.

Freelancing allows you to set your own schedule. Parents who are freelancers are more often able to attend their children’s school-day events and then complete work assignments on evenings or weekends.

Commuting during rush hour is no longer necessary, and you can work from home during inclement weather.

Another obvious benefit of working on your own is being able to separate yourself from annoying office politics and gossip.

Whether you are seeking more money or more flexibility, there are plenty of benefits of working as a freelancer. But it is essential to know that freelancers don’t necessarily work less, but they work differently.

4. Freelancers and remote workers need a place to work.

Another reason that freelancers are looking for Clifton Park office space for lease is that they need to find a quiet place to work.

Beginning freelancers and remote workers often dream of working from home. They love the idea of rolling out of bed and immediately beginning their workday. But then, the dog wants to go for a walk. And a child asks for a ride to the pool. And the laundry needs changing. And the dog needs out again.

Working from home is sometimes difficult. Everyone thinks they will be able to do it, but only few can completely focus on work when so many distractions surround them. That’s why after working from home for a few months, many freelancers begin seeking a small office place to rent Clifton Park NY or elsewhere in the vicinity. 

5. Freelancers and remote workers need a place to collaborate and take calls.

Commercial real estate developers pay attention to labor trends and provide adequate workspaces for the changing economy. These developers know that freelancers and remote workers are seeking attractive, quiet workspaces that offer privacy, security, and technology.

Developers also know that freelancers sometimes need a space to collaborate with workers who offer other skill sets. They may also need a quiet, secure place to meet clients.

Freelancers and remote workers are tired of taking meetings in crowded, loud coffee shops. Instead, freelancers are finding office spaces to lease that will provide a professional, neutral space to gather or make calls.

6. Clifton Park is an excellent place for a freelancer to be productive.

Before the rise of the gig economy, workers felt forced to live in large, metropolitan areas to advance their careers. This is not the case anymore. Instead of paying expensive mortgages and always fighting traffic, workers are retreating to quieter communities to work.

Clifton Park has plenty of workspace for freelancers who are ready to leave the traditional office job behind and enter the gig economy workforce.

Featured Image Credit: Alyibel  / Pixabay

Does Your Office Space Need A Nap Desk?

Does Your Office Space Need A Nap Desk?

Nap Desks are Transforming Office Space Work

A regular sleep schedule is absolutely crucial when you’re putting in long hours at the office. Unfortunately, there are always going to be those nights when you just don’t get enough sleep, leaving you feeling groggy and sluggish the next day. A nap could remedy this problem, but there’s nowhere to take a nap at work, particularly in small office rentals.

Enter: the nap desk. At first glance, it looks like a typical desk, however, when you slide away the front panel, you’ll find a twin-sized bed conveniently tucked underneath. Push a side panel back, and you’ll have space for a cozy pillow. Several furniture designers have released nap desk prototypes recently, grabbing the attention of tired office workers around the world.

Recharge during the Day

A nap desk could be the perfect addition to your office space, particularly if you consistently find yourself wishing you could lay down and recharge for a few minutes at work. When you don’t get enough sleep and you feel groggy, it’s inevitable that you won’t be your best at work. You’ll be sluggish, and you may take longer on tasks than you normally would. You won’t be as effective in meetings, and you may even have to repeat tasks multiple times to get the desired results.

However, just a 20 minute nap in the middle of the day could change that entirely. This gives your brain a chance to essentially ‘complete’ the sleep cycles you didn’t get the night before, so you’ll wake up feeling refreshed. When you’re more awake and energized, you’ll be able to get much more done. Not only does this help you feel better at work, but it also benefits your bosses and coworkers.

Save Space in Tight Offices

Adding a nap desk to your office is also an excellent way to save space in an office with a small floor plan. If you don’t have room for a couch or daybed in your space, then a nap desk still gives you a place to relax, without taking up the entire room. This is also a great option for people who have small home offices and want to maximize the space as much as possible. Especially if you live in a big city, it can be difficult to find offices for lease that have a large floor plan. Nap desks are part of a trend towards space efficient furniture, which is designed to be practical for atypical floor plans.

The Benefits of Napping At Work

There are many situations at work where a nap can be incredibly helpful. Maybe you didn’t get enough sleep the night before and want to catch up on rest during your lunch hour. Maybe you are struggling to meet a deadline and need to stay late at the office. In some cases, you will actually get more sleep if you can sleep at work instead of taking the time to go home and come back in the morning. Whatever your situation is, there are many reasons why you can benefit from napping at work.

After you wake up from a nap, you will likely be much more productive, because your brain will be refreshed and recharged for the day. You will also be more accurate, and your memory and creativity will be at their best after your nap. Especially in a job where your performance is absolutely crucial, taking naps when you need them can be the key to success.

Napping is also an excellent way to reduce stress. As stress builds up during the day, you might find yourself feeling physically tense, which can lead to bigger problems like headaches and digestive issues. You may also find that you are focused more on just trying to stay afloat and manage stressors than being totally productive at work. Many of today’s workplaces are very intense and create a culture of stress. Taking a quick nap gives you the opportunity to relax and let go of the stress.

Ideally, you should keep your naps around half an hour in length. In many cases, longer naps can leave you feeling groggy and disoriented for a short period of time afterwards. This essentially counteracts the positive benefits of taking a nap. Long naps can also affect your sleep schedule at night. Everyone is different, so you may need to do some trial and error to figure out the perfect nap length for you. Make sure you set a timer when settling down for your nap, just to make sure you don’t oversleep.

If you are an employer, you may want to consider giving your employees a comfortable place to nap, like a nap desk. Encouraging mindful rests and breaks during the day can actually help your employees be more productive, so it benefits everyone. When you give your employees the option to take care of their health, it also creates a better culture at work, because it shows that you respect your employees. When looking at office space for rent, consider how you can make your employees feel comfortable and productive.

Since nap desks are trending now, many furniture designers are releasing their own versions of this unique new furniture piece. If you feel tired at work or just wish you had a place to relax and recharge on stressful days, you may want to consider adding a nap desk to your office rentals. Not only will you be ahead of the curve, but you might just end up feeling more productive too.

Featured Image Credit: RobinHiggins / Pixabay

Open Office Spaces Can Offer a Positive Work Environment

Open Office Spaces Can Offer a Positive Work Environment

Image Credit: rawpixel / Pixabay

The general consensus has gone back and forth as to whether open office spaces help boost productivity. There is research that suggests that coworkers in open office spaces have poorer relationships and reduced job satisfaction. Some people have a hard time concentrating while trying to work in the same room as all their colleagues. However, there are several distinct advantages to working in an open office space. 

Open Office Spaces Limit Superfluous Chit-Chat

One might conclude that an open office space would foster a lot of social conversations that are not actually relevant to the task at hand. However, research indicates that the open setting and lack of secluded space to converse actually discourages unnecessary conversations. People tend to socialize more in private settings, where they believe they will not be overheard. Studies indicate that people tend to be less social in general in open office spaces. People in open office spaces have been shown to have more frequent interactions with their coworkers, but actually spend less time overall interacting.

Open Office Spaces Inspire Constructive Conversations

When people in a workspace share the same goals and are respectful of each other’s noise preferences, open office spaces work great for fostering productive interactions without lowering workers’ job satisfaction. Workers in open office spaces have more opportunities to collaborate with their coworkers.

                Workers in open office spaces are more likely to learn from their coworkers. Training new employees is often easier in an open office space. They are not left to flounder in their own offices and can quickly and easily ask any number of people for help without greatly interrupting anyone’s workflow. Also, its easier to learn important information from overheard conversations in a shared space. Anyone can ask for help and receive it in short order. Employees can put up whiteboards, flow charts, drawings, and mind maps, and all contribute to these tools when they have ideas. Open office spaces allow for constant group brainstorming and problem-solving.

How Open Office Plans Can Be Made to Work

The employees’ mindset is the most important element of making an open office space work for a company. They have to be available to help others without getting too distracted with everyone else’s tasks. They also have to be able to see periodic interruptions as opportunities to help and learn, instead of as problems.

            It is also important to establish rules as a team. These should be discussed as a team in order to gain full cooperation. For example, there should be agreed upon way to ask one’s colleagues not to interrupt a task. Appropriate noise levels and activities should be discussed to minimize distractions. Protocols for brainstorming productively can be established, so everyone knows how they will be expected to contribute.

If possible, open office spaces should establish some more private spaces as well. For example, it is often helpful to have a room available for quiet work time. In addition, there should be meeting rooms for projects that require extensive discussion between specific team members, since tasks that require in-depth discussion do poorly in open work environments.

            Another factor that contributes to successful open workspaces is if everyone is working on connected tasks. If everyone is working on projects that are mostly independent of each other, they can become distractions to one another. However, if the tasks are connected, employees are able to work on most of the tasks collectively. In this circumstance, workers must be able to quickly exchange information and become used to lots of short interaction throughout the day instead of fewer longer discussions.

            Lastly, it is important to realize that open workspaces do not work for every type of work. For example, scientists doing research found that open workspaces were too distracting. Any workplace that specializes in mostly individual tasks will probably not be benefited by an open floor plan. When considering an open workspace, match the nature of the tasks with the space.

The Effect of Tech/Creative Tenants on Office Leasing

The Effect of Tech/Creative Tenants on Office Leasing

The companies that are among the most prominent tech and creative companies in the world have had an impact on society so massive that it has never been seen until now. They have made a point of making sure that no one today can do without their products, and have improved the general quality of life for many people. Despite the incredible effect they’ve had on the world, at least three of today’s ten largest companies by market capitalization are relatively new. Amazon incorporated in 1994, and it’s actually the oldest of the three. Currently its the sixth largest company on the list. Next came Google in 1998, and it is number two in market capitalization. Facebook, the fifth on the list, came next in 2004. These businesses and others mark a new era of companies, and they have been at the forefront of drivers of rapid leasing activity. They are not only expanding in their primary markets, but also taking advantage of a lower cost of commercial property and spreading out to secondary markets.

Another indication of how fast things are changing among tech companies is the fact that most of the 162 private companies worth $1 billion or more reached that billion mark in the last three years or less. The oldest one made the list in 2009. These companies are listed on the CB Insights Unicorn List.

Firms that have shown up in the last twenty years have been leasing more office space as they’ve grown. They have had a profound impact on the leasing of office space. These creative and tech companies are defining trends in leasing, despite the prevalence of more traditional companies in the leasing market in the past, and they are beginning to affect other sectors. These companies are even taking Boston and New York by storm, despite the fact that historically the majority of their office spaces were leased by more traditional industries, even as other cities hosted more and more creative and tech companies.

As a result, the commercial real estate market is experiencing a boom. In 2015 the absorption figure reached the highest it had been in a decade, 86.7 million feet of absorption. On the other side, vacancy declined 70 basis points, falling to 12.5 percent from 2004 to 2005. The vacancy rate is the lowest it’s been since 2008. The majority of the change is due to Creative/ Tech companies. leased 300,000 more square feet in New York. The building is to be renamed Salesforce Tower New York. Amazon went from 8.3 million square feet in the Silicon Valley and San Jose to another 11 million square feet in Seattle. Facebook also added another 275,000 square feet. According to experts, almost all of the net absorption of commercial leasing space has been due to the new Tech and Creative companies.

Creative companies and tech companies, companies mostly staffed by and strongly related to millennials, are taking the world by storm. They’ve had an exceptionally significant impact on the amount of office space leased, and it looks like they will continue to in the future.

Featured Image Credit: rawpixel / Pixabay

Should you Rent or Buy Commercial Property for Your Small Business?

Should you Rent or Buy Commercial Property for Your Small Business?

Nowadays, many small businesses start their journey to success from home.

Maybe they start in a spare bedroom or use a room behind the garage. That’s all fine when, there are, let’s say, 2 or 3 people working together, but what happens when your business grows? What happens when you need to start taking on more staff to fulfill orders or to provide the necessary sales or administrative support? What about your files, records and new office equipment, where’s that going to fit in to your current space?

Moving involves several key decisions

Well then, it’s really time to start thinking about moving to a purpose-built office or other type of commercial space. But the big question is: Do I rent or buy commercial property to facilitate my business expansion and future growth plans?

Once you have made the decision (probably in conjunction with your partners or staff) to make a move, there are a myriad of factors which you will need to review to help you with your decision. And these factors may differ slightly if you are making the first move out of home, or have moved premises once (or twice) already.

Questions which have to be asked

Questions which have to be asked

The list of questions to be covered is not endless and each small business may have their own reason whether to rent or buy commercial property. In any event, have a think about these questions which we at Greater Alliance Federal Credit Union suggest you ask yourself before you make a decision:

What future growth does your Business Plan call for?

Future business growth is always difficult to predict. If you have a 2-3 year plan to hire “X” more people, maybe add a showroom to your premises, for example, you probably want to lease. This will allow you more flexibility in case you grow faster than anticipated.

Lease terms can be as short as three years, with possibly an option in the lease to further extend if all covenants are complied with. Generally, leases are much easier to adjust.

On the other hand, buying a commercial property and paying a mortgage suggests more of a sense of permanence. If the mortgage offers fixed monthly payments, this may be better for planning long-term. In addition, you can enjoy capital growth if property values increase in the location you buy in—but, as we all know, this is not always the case as extraneous factors can affect value and cause a decline.

But, be careful. The last thing you want to do is buy commercial property, only to find it’s too small in, say, 3 years’ time and have to try to sell on the property.

Do I have enough savings/cash for the required deposits?

If you are leasing or buying you will need money for a deposit. If you plan to rent property you will need money for the security and utility deposits under the terms of your lease—although, of course, you get this back at the end of the lease term.

If you buy you will need rather more money for the down-payment as part of the purchase agreement. Even if you can afford the down-payment, do you want to tie this money up in buying property or would it be better to, at this stage, put it into the growth of your business?

Of course, it’s wise to discuss this issue with your accountantor financial adviser who will help analyse the move from a purely financial perspective.

They can:

  • consider any tax implications or benefits from interest, depreciation and non-mortgage expenses;
  • analyse the impact of rental or mortgage repayments on your annual operating budget;
  • make recommendations about your cash flow and working capital needs

How important is your location?

If you are reliant upon clients finding you at a particular location or depend, to some extent, on retail sales, then the availability of the right property will help determine your decision.

Some prime locations are only ever for rent as Landlords are keen to hold on to their investments. Plus, the cost to buy in a prime spot may be just too high for a fledging business.

On the other hand, if you primarily go to visit your customers or do a lot of work on-line then a second-tier location may work for you. In such case, renting makes sense as there is more chance of getting additional space in the same building as and when you need it.

Have I calculated occupancy add-on costs?

Don’t forget that there will be various direct and indirect costs to be added to your cost of occupancy, whether you rent or buy commercial property.

If you rent, many of the expenses might be built into the lease rent but you need to be sure about your liabilities for common area maintenance fees, parking costs and the like. Then there are utilities and operating insurances to be paid.

Renting also brings fewer headaches leaving you to focus on your business growth and not worry about running the building.

If you decide to acquire a building, this comes with this the added costs of building repairs and maintenance, building insurance (as compared to operational insurance). Plus,the costs of security systems or guards, common area cleaning and, probably building or property taxes levied by the City or district.

So, what’s it to be?

The final decision whether to rent or buy rent or buy commercial property for your small business needs a great deal of thought and future planning. One other key factor for other small business owners is how long they expect to stay in a property before their anticipated growth requires them to move again?
Featured Image Credit: Prawny/ Pixabay
In Post Image Credit:  geralt /Pixabay

How to Negotiate a Great Lease for Your Startup

How to Negotiate a Great Lease for Your Startup

In the process of starting and growing a new business, there are a lot of hurdles than entrepreneurs have to face. One of those hurdles is the cost – starting a business is expensive, and leasing office space is one of the biggest expenses a young company will incur. Therefore, it’s extremely important to know how to negotiate for the best possible lease. This can save you money that can then be redistributed into other parts of your company. Every lease is different, but the following tips will help you learn what to look for and how to make sure you get a lease that meets the needs of you and your company.
            Of course, you’ll need to note that your ability to negotiate a lease depends on how much leverage you have, so scout around. Find out if there are other companies that are interested in the space you’re looking at, and how long it’s been vacant. This will let you know how much leeway you may or may not have when it comes to negotiating the exact terms of the lease. So, some other things to think about:

The Lease’s Length

The Lease’s Length

           Finding a new tenant can take a lot of work, so landlords are often willing to work with you on lease terms if, in return, you’re willing to commit to a longer lease. On the other hand, if your needs change, you may end up stuck in a lease that’s too small, too big, or too expensive. If you can, sometimes a compromise is the best option – look for a shorter-term lease with the option to renew, and you may be able to get the best of both worlds.

Rent Escalations

            A steady rate for rent is relatively uncommon over a long period of time. This makes sense – housing markets get more expensive, and there’s always inflation, so landlords have to raise the rent over time. Sometimes, this takes the form of annual, percentage-based increases connected to the Consumer Price Index (CPI). This is often negotiable, to some extent. You can try to make a deal for a rent increase that doesn’t kick in until after the first two years (at least), or try to negotiate for a cap on how much the rent can increase per year. You can also negotiate ahead of time for a fixed increase, rather than one based on the CPI.


            Many leases state that the tenant may not make unapproved alterations or improvements to the property. But, the space may need some improvements in order to fit your needs, so ask for a clause that will allow you to 1) make those improvements with the landlord’s consent, and 2) provides that the landlord cannot unreasonably withhold or delay that consent. Since improvements raise the value of the property, your landlord may be willing to give you a tenant improvement allowance, a pre-negotiated amount of money that the landlord will provide you to make the improvements you want.

Repairs and Replacements

            Many leases contain a clause that states that at the end of the lease, the premises must be in the same condition that they were in at the beginning of the lease. Try to negotiate for a clause that will exclude ordinary wear and tear, fire damage and damage that wasn’t the tenant’s fault, and (of course) any landlord-approved alterations or improvements.

Assignment and Subletting

            As a growing company, you need to prepare for possible mergers, changes to share ownership, and other types of reorganization. Make sure you negotiate for an Assignment and Subletting clause that is flexible enough to accommodate these possible changes.

Shop Around

            Be aware that the terms “usable square footage” and “rentable square footage” are not the same, and they are not interchangeable. Remember that a space’s useable square footage is always less than the rentable square footage. This is because “usable square footage” excludes common areas – for example, hallways, elevators, bathrooms, and lobbies – so don’t compare two spaces that have different units listed; make sure you’re comparing apples with other apples, and nothing else.

Think About Subleasing

            Sometimes companies grow and take up more space over time. Other times, they shrink, and some older companies end up with a large space that outsizes their needs. You may be able to find a good deal subleasing office space from a company like this. Subleasing also comes with a handful of potential advantages over a direct lease: The space is already in use, so any needed improvements are probably already in place, t may be cheaper and easier to get than your own dedicated facility, and you can probably get a shorter lease term (so you won’t be trapped if it doesn’t work out).

Of course, in addition to the other company, you’ll also be beholden to the terms of the original lease with the landlord, so don’t skim that document.

Letter of Intent

            It may be helpful to begin your negotiations for your space by presenting the landlord with a letter of intent. This is a good way to start out the negotiations with your essential terms already on the table: lease rate, term, renewal options, improvement options, et cetera. After laying the groundwork with the letter of intent, you can negotiate for a lease that both parties will find satisfactory.

Featured Image Credit: geralt / Pixabay

In Post Image Credit: geralt / Pixabay

9 Commercial Real Estate Trends to Dominate 2019

9 Commercial Real Estate Trends to Dominate 2019

The commercial real estate market is already forecasting 2019 to be a year of significant trends that are sure to surprise even the most adept agent. From a shift in industrial absorption and the development of new zones of opportunity,there is no lack of substantial changes occurring in the sector. Let’s look at nine critical trends that you will want to keep your eye out for this year.

1. Hipsturbias

The name may sound funny, but if you’ve never heard it, you have not been paying attention.These areas continue to grow by housing recently married millennials who want to keep the hustle and bustle of the city but wish to tone things down a bit. “Urban-burbs” as they are also called are suburban areas that allow for easy access to public transportation and have several businesses within walking distance of the home.

Millennials are flocking to these precious gems because the housing is much cheaper than in the city, and this means that the retail landscape of those areas is soon to change to accommodate the newly minted homeowners. You can expect to see more health conscious supermarkets, quaint coffee shops, book stores, and more avocado toast. This is a trend you want to sink your teeth into right away.

Construction Costs Rising

2. Construction Costs Rising

This is a story carrying over from 2018. Construction costs are rising due to problems with the labor force and difficulty getting prime materials due to the trade war. Steel, porcelain, lumber, and other vital materials come from Canada, China, and other countries that have been sparring with the USA for some time now.

For the commercial real estate market, this is alarming as it means that setting up new businesses or production facilities can really hurt margins and ultimately affect the bottom line of any investor. Hopefully, the volatile political climate will ease as the year progresses, but in the meantime, it is better to be well-informed.

3. Hotel Occupancy to Continue Rising

This is a trend that has been going on for almost a decade, and we can expect more of the same in 2019. Hotel occupancy is expected to rise to nearly 67% according to the STR, and they say that it is mostly due to the high demand that offsets the incoming supply. This continued surge is impressive as businesses like Airbnb have really made a dent in the hospitality industry,and yet hotels seem to be coping with its effects.

For commercial real estate connoisseurs, this means increased business traffic yearly via conventions, events, and other events that are sure to drive profits and give the market yet another boost this year. Keep your eye out for the numbers at the end of the year, too, as 2020 is already looking good.

4. More Warehouse Developments

Amazon recently became ILPT’s largest tenant, and warehouse developments continue to grow as the internet swallows more and more commercial space. The warehouses of today are entirely different from those of old.They tend to be multileveled and store various products.

The operations managers in these new warehouses will have their hands full with all the changes, but it is essential that the savvy commercial real estate agent pay close attention to how it all unfolds as this could mean yet another spike in warehouse developments next year.

5. Hope for the Best but Expect the Worst

We don’t want to be grim here, but as the economy nears a full decade of expansion naturally, everyone fears a new recession at any moment. Downturns generally occur a couple of years after employment levels hit peak levels, and while there no tell-tale signs at the moment,it’s always better to be safe than sorry.

There may not be any need to mention that real estate is not resistant to business cycles and can be heavily impacted by even the slightest downturn in the economy. Keeping a close eye on the subject and keeping a “beware the good news” attitude is not the worst thing that can be done this year.

6. Less Brick and Mortar Retail Bankruptcies

A lot of once-significant players in their respective industries shut their doors last year, including established brands like Sears, Claire’s, and Brookstone. The trend is expected to continue this year but with a bit of a slowdown. Brick and mortar retailers are beginning to adjust to the ever-increasing presence of online shopping, and closing certain locations is often how they are changing and avoiding bankruptcy. Stores are focusing on their online presence, and this can only help them in the long run. The animal is not dying; it is merely adapting to change.

7. Groceries Moving Online

Similar to other retail locations, grocery stores are feeling the pressure of new home delivery services that are making life a lot easier for families at home. Commercial real estate players should expect to see more significant chains focus their attention to online services while also closing down major locations in urban areas.

The grocery store transformation will likely be much slower than in any other retail business, but it is essential to see what moves they make in 2019 as the internet continues to penetrate the way that stores in almost any industry do business. Everyone needs groceries, but how they get them will come down to grit.

8. Demand for Office Space to Slow Down

While at the moment stable, the office space leasing sector may see a very slight slowdown in need this year as employment numbers seem to settle. The trends of 2018 in this area are being put into question, and yet the come-down is not expected to be too harsh. Start-ups and established companies are coasting at the moment and barring some major change, everything in the office space world looks to be business as usual.

9. Commercial Real Estate Tech Boom

Commercial real estate players can expect more help this year as start-ups are being offered new technology by global fund investors who want to see even more growth in the industry. The many technological advances that are coming are sure to impact the industry in many ways. You can be sure that your competitors are already making room for more tech in their portfolios and that means you should, too.

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Open Plan Offices – A Failed Experiment?

Open Plan Offices - A Failed Experiment?

If you’re searching for commercial space for rent you might be considering moving into a building with an open plan design. While this office design is great in theory you might want to rethink the type of office leasing you’re looking for – open plan offices have a few problems that may affect the workflow of your employees. 

The theory of an open plan design is sound. The lack of small, enclosed rooms (such as private offices) coupled with a wide, open layout theoretically should encourage workers and managers alike to interact with one another and prompt collaborations.

However, a fairly recent study has revealed that workers are doing the exact opposite of collaborating with one another — they’re keeping to themselves more than ever. To conduct the study, researchers used microphones and electronic badges to track email use and the level of interaction among employees.

The study revealed that employees had decreased face-to-face interactions by 73%. Instead of interacting with one another employees buried themselves in text messages and emails which both saw an increase of over 67%.

What's the Argument for Open Plan Offices?

What’s the Argument for Open Plan Offices?

The concept of open plan office spaces seems like a great idea. Studies show that our social environment contributes significantly to our ability to stay motivated and work that much harder. Furthermore, work environments today are places where “playing well with others” has become more essential than ever.

That’s why the idea of an open plan office makes complete sense. The workplaces that have higher interaction amongst employees tend to not only improve work output but also improve job satisfaction, as well.

One major influencer of employee productivity, job satisfaction, and improved willingness to collaborate with others is the design of the workplace (theoretically anyway). The entire point of the open plan office concept was to create a wide space that discourages independent work and encourages more social interaction.

The open plan office concept was all about creating a sense of community — solo work would be reduced in favor of a group based effort which would (theoretically) improve overall work output.

It turns out workers need one vital factor to concentrate – privacy

One aspect of productivity that the open plan office design didn’t take into account was the fact that employees require privacy to get work done. Imagine yourself in an open plan office — every movement, every bit of conversation, every individual — all visible to you and serving as distractions from your work.

On average it takes about 23 minutes to get back on track after you’ve been distracted. Thus, employees try to make up for these distractions by expending additional mental energy to regain their concentration. As a result, they tend to communicate even less with their coworkers, research shows.

During these periods of constant distraction workflow is interrupted, and the employee will likely perform at a lower level than average. Efficiency and productivity will decrease, and mistakes will arise.

Focus is the key word here. The failure of open plan offices lies with the fact that employees aren’t able to focus. There are just too many people doing too many things in too dense an area for anyone to truly concentrate on their work.

What the cubicle design gets right is that it allows employees to bury themselves within their own little world as they focus on their work, free of distractions. Focused work is the key to productivity. When focus is taken away so is an employee’s ability to stay truly productive.

Why aren’t employees making more of an effort to collaborate?

Whether intentional or not, open plan offices were designed to increase collaboration and interactivity at the expense of concentration and focus. The problem with this concept is that employees expend emotional and cognitive resources attempting to make up for their lack of focus. As a result, they’re not as willing to collaborate with others.

Further research indicates that the combination of lack of privacy along with increased crowding in the workplace often puts workers on the defensive and office relationships are strained as a result.

The real reason why open plan offices fail

There’s no such thing as a one-size-fits-all for office designs. As individuals, we all view workplaces differently. Where one person may find an open plan office to be the perfect environment for getting collaborative work done another person may see it to be incredibly distracting.

Concentration and focus will always be the foundation of productivity. That’s why organizations should attempt to find a workplace solution that not only allows employees to have a certain degree of privacy (which leads to increased focus) but also fosters the need for more interactions amongst employees.

If you happen to be searching for office space for rent in Clifton Park, we can accommodate you. Atrium properties has over 40 years of experience in building and managing office buildings. We always ensure our tenants are paired with the ideal commercial property for rent because we know that if our tenants are successful, we’re successful. Contact us today for more information.

Featured Image credit: Benn CC BY-SA 2.0  via Wikimedia Commons
In Post Image Credit: geralt / Pixabay

What is the best way to find commercial office space for rent?

What is the best way to find commercial office space for rent?

Finding the perfect commercial office space for your business takes time, effort, and a willingness to do in-depth research. Moving into the wrong type of office space can have disastrous results for your business. For example, if you pick an office space based in the wrong location (little to no traffic, significant security issues, hard to physically locate), then you can expect your business to suffer on multiple levels.

Other factors such as size, rent, and overall budget also play a significant role in the type of office space you should choose for your business. Identifying the best way to find commercial office space for rent can seem like a daunting task from the surface, but focusing on the essentials will make your task that much easier.

Let’s breakdown the best way to find commercial space for rent.

1) Create a shortlist based on your budget

Creating a shortlist doesn’t just help you find the perfect office building for your business — it also saves you time and money. Rent can vary depending on the locality, so weeding out the office spaces that are outside of your budget range will ensure you don’t waste time looking at commercial spaces that aren’t well suited for your business.

2) Consider how much space you need

Space is one of the most important factors you need to take into account when you’re choosing a commercial office to rent. How large does your office space need to be? Small? Medium sized? Large? Understand your needs in terms of space before setting out on your search. As you determine the right size of your office space consider the number of people you employ, whether or not you intend on having customers visit your office, and so on.

3) Furnished vs. unfurnished office space

Depending on who you speak to this option may seem like a luxury. Despite this, you should consider the pros and cons of moving into a furnished vs. unfurnished commercial office space. The obvious drawback of moving into a furnished office space is that the extra amenities will likely cost you more each month in rent.  However, one major advantage is you’ll potentially save hundreds of dollars upfront because you won’t have to purchase (and transport) your own furniture.

4) Business centers

Business centers are a great place to start for many companies. Even some of the most reputable businesses base some of their branch offices in business centers. Business centers are useful because they handle the hassles of administrative work that businesses deal with during their day to day proceedings. This will free you up to focus on what matters most — growth and revenue generation.

5) Look for well-known office complexes in commercial areas

Why should you look for office complexes? That’s because well-known spaces such as these are known for providing the best amenities for their office spaces such as water, central air conditioning, electricity, and more.

6) Look for online listings

There are plenty of online listings out there that will help you track down the perfect office space for your business. Listing sites such as LoopNet and Zillow do a fantastic job of listing properties available in your area of choice. You can also turn to broader sites such as Craigslist. While Craigslist provides a wide variety of services, it has proven to be an effective resource for finding available commercial property. 

There are many online listing sites to choose from. Do your homework and focus primarily on the most trusted sites. The two qualities a good listing site should have is time efficiency and accurate listings. Ensure the site is always kept up to date (otherwise you’ll just be wasting your time). Also, you should be able to navigate the site with little to no issue.

Final thoughts

Choosing the right type of commercial space for your business takes planning and time. Making a choice without thoroughly analyzing the needs of your business could lead to you making the wrong choice — a decision that can haunt your business for years. Take your time, do your research, and execute your strategy. With enough diligence, you’ll be able to identify the best commercial office space for your business.

Looking for a commercial space in the Clifton Park area? Contact Atrium Properties today. We’ll match you to an office space well suited for your business. With more than 40 years of experience building and managing buildings we know what it takes to make our customers happy. Contact us today for more details.

Featured Image Credit: Free-Photos / Pixabay