Category Archives: Office Property

Office Vacancy Down, Office Asking Lease/Rental Rates Up!

Office vacancy in the Phoenix market dropped to an average of 17.8 percent from 18.8 percent at the end of the fourth quarter of 2013. According to CoStar Group, a Washington, D.C.-based research firm.

 

The average asking rental rate for all classes of office property in the Phoenix office market was $20.42 per square feet a .06 percent increase from the end of the fourth quarter of 2013.

 

Closer to home, here in Payson Arizona, Costar tracks the current Office vacancy rate in Payson, at 29.5 percent, up from 25 percent in the 4th quarter of 2013.

officecondos in payson near the Payson Reginal Hospital

Office Condos in Payson AZ

 

Office lease/rental asking rates in Payson for the current quarter of 2014 is $13.84, up just under 5 percent from the fourth quarter of 2013.

 

Let me know how I can help you with your commercial property management, sales and leasing needs.

 









The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Is Your Office An Asset Or A Liability for Your Business?

Some important things to consider when selecting an office for your business to insure your office is an asset.20131206_081927

The office location

That’s right in real estate its about location location location, but for different reasons that searching for a home. Getting a professional office space for your company could be the shot in the arm needs to get to the next level. Whether to improve employee retention or because you want to look more professional to potential customers, getting a professional office space is the right move to position your business for further growth.

Things to consider:

  • How easy is it for your employees to get to work? Are you near major access roads? (Easy access from your employees homes.)

  • Is there ample parking for your employees and guests?

  • What about ingress and egress to and from the property?

  • Are you close to an airport? If the proximity to an airport is important to you.

 What about any Amenities?

  • Is there a daycare provider nearby?

  • Are there good places to take clients/customers to lunch?

  • How far do employees have to travel for lunch, going to a pharmacy, doctors’ offices, etc.? You can increase employee productivity through decreased time away from the office.

If you are in a convenient area, employees are able to get to work on time and spend less time out of the office. Having a lot of amenities in the vicinity will improve the employee’s satisfaction and results in fewer employee turnovers. This will also help you attract and keep the best talent.

The office building

It’s critical that the property where you occupy space is efficient. To that end:

  • Is the building appropriately priced within your budget for your business?

  • Are the office operating costs high or low?

  • Is the office buildings load factor high or low?

  • Is it more space than you actually need?

  • How old are the building’s systems, example: HVAC, Internet and other communications capabilities. Will they likely need to be renovated, and how will that disrupt your operations?

Locating your business in an office building that is efficient and has a low operating cost reduces your business’s occupancy expense. Quality systems, a healthy environment and plenty of amenities can reduce your employees’ out-of-the-office time and increase your employee’s satisfaction rating.

The office space itself

Space efficiency is a hot topic these days in the commercial real estate world, as businesses are trying to keep their expenses down, while providing room for growth.

As Millenials will be making up 75% of the workforce in 11.5 years, we can expect the rapid changes in today’s office space is inevitable.

More things to think about:

  • Having standardized offices and workstations can reduce your overall real estate costs.

  • Is the amount of space in line with industry standards for employee-to-space ratio (1 employee per 200 to 350 rentable square feet)?

  • Do you have enough public spaces to optimize productivity ( meeting rooms, employee break room, printers, copiers etc.)?

  • Do you have a sublease plan ready if you need to downsize?

Let me know how I can help you find an office that’s an for your business that increases productivity and employee satisfaction, while decreasing your costs. A true win-win!

 









This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Reasons You Shouldn’t Negotiate Your Own Commercial Lease.

 Trying to find a professional office without professional help may actually cost your businesses.

Sure you want your business to grow, but trying to find a professional office withoutanother office building chandler az professional help may actually cost your businesses.

Running your business out of your house for a short time may have help your business survive during a downturn. Ultimately, moving your business into a professional office may be best for you and your company to grow to the next level. Whether if be from expanding your marketing base to hiring more employees.

Whether it is because you can’t effectively manage your employees out of your home anymore or because you want to look more professional to potential customers, getting a professional office is the right move. Bottom line, getting a professional office for your company could be the shot in the arm needs to get to the next level. Taking the next step is deciding to lease a professional office space to help your company grow.

Long term, it is impossible to get by with a meeting here and there, in restaurants or at houses. If you want to make your company to grow and be successful, you need to create a space where people can focus on production, where they can come to share a common goal, and constantly be a part of the work they need to do for your organization.

However, you’re busy running your business, it is hard to find the right office space and it takes a lot of time. If you have looked at leases, you understand that this process is something you almost don’t want to get involved in without professional guidance.

You’re making a long-term decision on location, layout, amenities and all the financial and legal matters that go along with a commercial lease, including:

Current Market.

ADA compliance.

Does the lease cover property taxes?

Does the lease cover insurance?

Does the lease cover maintenance?

Let me know how I can help you find your professional office for your business.









This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

Looking to Attract Top Talent? Examine Your Office Environment!

As Millenials will be making up 75% of the workforce in 11.5 years, we can expect the rapidn gilbert office condo changes in today’s office space is inevitable.

What does this mean for the office space and the changing workplace? A lot! In an age of smart phones, tablets, laptops and the cloud, the Millenials are not only quite comfortable with working via the Internet, but actually prefer it.

A study by Mom Corps, a national talent acquisition and career development firm revealed that flexibility is one of the most important factors they consider when deciding what company to work for.

“The main takeaway from this year’s survey is that flexible work trends are gaining attention and momentum,” said Mom Corps founder and CEO Allison O’Kelly. “We see more employees asking for the work situations they need and more companies offering flexibility as a talent management strategy.”

Today’s younger workforce is used to, and prefers the idea of being mobile. As the office space workplace goes more and more mobile, with employees working wherever is convenient, it becomes necessary to recruit and retain the most motivated employees, as workers that are not self-motivated, could easily abuse the system.

As work becomes less of a place and more of an activity, businesses that expect to be able to attract the best and the brightest of this generation, will need to change how they perceive and manage their employees.

Productivity measurement will be the key, not hours spent at the office. Pay of course should be tied to performance, and as a result these workers can and will perform at a higher level and be happier while do it.

Work is becoming more of what we do and less of where we are. One of the tools being used in this change is that of office hoteling. It is where those who do not need a full time desk space simply login and reserve a space when needed, resulting in savings in real office space costs.

Let me know how I can help you with your commercial property needs.









This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

A Professional Office May be Key to Help Your Business Grow

The office vacancy rate decreasing below 20% in the second quarter in the Phoenix area isoffice condo in gilbert not the only welcome shift in the Phoenix area office market.

 

A few years ago, that seems like yesterday, I would occasionally hear a business owner tell me they were not going to renew their lease or look for other office space, but rather were going to run their business from their homes.

 

More frequently these days I have business owner contact me desiring to find office space so they may move out of their home offices, which I find to be another encouraging and welcome shift.

 

Moving your business back into a professional office space is the first step to larger growth overall. Running your business out of your house for a short time may have help your business survive during a downturn. Ultimately, moving into a professional office space may be best for you and your company to grow to the next level. Whether if be from expanding your marketing base to hiring more employees. Taking the next step is deciding to lease a professional  office space to help your company grow.

Working from home has some advantages, but looking professional is definitely not one of them. By moving back into an office space, you will not only be putting your company in the position for further growth, but you will also be able to look more professional to potential clients.

Bottom line, getting a professional office space for your company could be the shot in the arm needs to get to the next level. Whether it is because you can’t effectively manage your employees out of your home anymore or because you want to look more professional to potential customers, getting a professional office space is the right move.

 

Let me know how I can help you with your commercial property needs

 









This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Phx-East Valley Office Vacancy Rate and Lease Rates are Lower than Phoenix-area Overall.

With vacancy rates lower, how long do you expect lease rates to remain lower?

In addition to the Phx-East Valley’s office vacancy rate being lower than the Phoenix area n gilbert low rise office buildingoverall, the Phx-East Valley is experiencing it’s share of growth in the office market.

According the Mid Year Office Market report released by CoStar, the office vacancy rate decreased to 19.4% in the second quarter in the Phoenix area overall. With asking office lease rates increasing to $20.05 sf in the second quarter from $19.45 in the first quarter of 2013 on average.

 

By comparison the office vacancy rate in the Phx-East Valley area was 17.2% with a vacancy rate of 13.7% for class A office buildings, 18.7% for class B office buildings and 13.6% for class C office buildings.

 

Office lease rates in the Phx-East Valley were similar to the asking office lease rates in the Phoenix area overall at $19.08 sf with an asking lease rate of $23.46 sf for class A office buildings, $19.18 sf for class B office buildings and $14.66 for class C office buildings on average.

 

It should be noted that 2 of the 3 largest lease signings in 2013 in the Phoenix area office market have been in the Phx-East Valley.

 

The total office market in the Phoenix area saw a net absorption or 183,607 in the second quarter of 2013, 92,408 of which was in the Phx-East Valley.

 

Office buildings under construction at the end of the second quarter of 2013, were 68,867 RBA, 0% of which is preleased, all in the Phx-East Valley.

Let me know how I can help you with your commercial property needs.









 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Phoenix No. 1 for Economic Growth, Office Vacancy Rate was down over the Previous Quarter

The latest Metro Monitor Report from the Brookings Institute shows an output increase ofanother office building chandler az 1.2 percent in Phoenix during the first quarter strong according to the Phoenix Business Journal.

 

“If output continues to grow at the pace it did last quarter, it could reach a full recovery by the end of 2013,” Kenan Fikri from the Brookings Institute said, adding “Since output recovery typically precedes a job recovery, companies make more sales before they hire more people, the recent progress on the output front does point to a potentially accelerating jobs recovery, as well.”

 

In a separate report this week, CoStar reported that the Phoenix Office market ended the second quarter 2013 with a vacancy rate of 19.4%, which was down from the previous quarter.

 

Commercial office rental rates in the Phoenix metro area, ended the second quarter at $20.05, an increase over the previous quarter.

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

The Death of The Office

By 2025, the freedom-seeking Millennials (19 – 30 years old), will make up 75% of the office building mesaglobal workforce and their independent-thinking and entrepreneurial mindset is going to change the future of the workplace.

 

The Millenials entered the workforce during the Information age, the Industrial age is dead, and the barriers of the Industrial Age work environment simply don’t make sense for businesses that want to get more work done, or for workers who are demanding more freedom. No one today wants to be confined to a cubicle”.

 

Unlike their baby boomer parents, the millennials, feel no sense of “job security”, by working a corporate, 9-5 job. But instead they since a greater feeling of security and more important to them, freedom, freelancing for multiple sources working wherever they want, whenever they want.

 

Yahoo must be out of touch. Earlier this year, Yahoo CEO Marissa Mayer banned her employees from working from home.  The head of Yahoo HR wrote in a memo. “We need to be one Yahoo!, and that starts with physically being together.”

 

Yahoo was blasted by the media, after all everybody knows, that people who work from home are far more productive, right?

 

The problem is, both sides are right. Allowing your people to Work from home, lets people operate efficiently. Many programmers perform best when they can go from say, 10 pm to 4 in the morning, which is why so many high tech firms let valuable coders work from home. When your people, work from home, they can roll out of bed and be at work in two minutes being, more productive.

 

However, working together makes you more creative. Productivity and creativity, in other words, can be polar opposites.That is the real challenge for people who run modern organizations, understanding, what they need, productivity or creativity, not where to do it.

 

While one size fits all policies, like the one at Yahoo may be outdated with the Millenials entering the workforce, even still the rumor of the Death of The Office, may be premature.

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This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared

 

The Phoenix Office market – Prices Up Vacancy Rate Down

Commercial Real Estate prices up 5.1% Year-over-year in February and The Phoenix offices in gilbert az for leaseOffice market ended the first quarter 2013 with a vacancy rate of 19.4% according to CoStar.

Also according to CoStar, the Phoenix area office vacancy rate was down over the previous quarter, with net absorption totaling positive 152,689 square feet in the first quarter.

Rental rates ended the first quarter at $19.44, a decrease over the previous quarter.

Additionally there was 256,270 square feet still under construction at the end of the quarter.

The real estate market is heading up – The percentage of commercial property selling at distressed prices dropped in February 2013 from the previous month.

The longer you wait to get in the game, the harder it is going to be to make money.

Building costs are increasing. Buying a property below replacement cost gives you a leg up, but will become increasingly more difficult as prices continue to rise .

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This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain furtherinformation you deem necessary. I want you to be prepared

 

Commercial Office and Industrial Vacancy Decreases in Phoenix

The Phoenix commercial office and industrial markets each saw decreases in vacancies in the fourth quarter of 2012 according to CoStar.gilbert office condo

CoStar reported, the Phoenix Industrial market ended the fourth quarter 2012 with a vacancy rate of 12.4%,  compared to the U.S. National Industrial vacancy rate, which decreased to 8.8% from the previous quarter

Rental rates for industrial properties in the Phoenix area, ended the fourth quarter at $6.23, an increase over the previous quarter.

Costar had reported earlier in the week that the Phoenix area, Office market ended the fourth quarter 2012 with a vacancy rate of 19.4%, compared to the U.S. National Office vacancy rate, which decreased to 11.9% from the previous quarter.

Rental rates for office properties in the Phoenix area ended the fourth quarter at $19.95, an increase over the previous quarter.

 

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This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared