Investing in Commercial Properties: Rent or Buy?

Businesses run on money, making a price point the single most significant decision-maker when it comes to buying or leasing a commercial building. While the financial health of a company is chief, a variety of accompanying factors also come into play. The following key points weigh heavily in a business’ choice to either lease or buy a commercial property.

Here are some questions to ask yourself before deciding to rent or buy a commercial property.

How long is the business expected to remain in a specific location?

When deliberating to buy or lease, business owners should consider the length of time the business will remain in that location. Buying the property is optimal when a business plans to stay put for seven years or more. Expecting to inhabit a space for less than seven years warrants leasing.

For example, a technology startup that expects to occupy a property for 15 years will pay 80 percent more to lease the building during that duration rather than buy. However, the same startup that plans to relocate in seven years will pay far less to lease during those few years.

What is the business’ growth potential?

Companies that are expected to experience rapid growth ideally will consider leasing a commercial property. The physical space required to accommodate growth will simply increase when businesses prosper, making a new building in the future foreseeable. In such cases, leasing is optimal.

Another benefit of leasing is the flexibility. Since lease terms usually fall between three and ten years, a company expecting to expand its size within this short span of time has no barriers when it comes to relocating to a larger, more suitable property.

On the other hand, businesses that have already seen explosive growth and experience stability in their market sphere will find security in an existing property, making buying a commercial space more practical. Buying commercial property is appealing, since mortgages are more stable than leases.

Can a business afford the upfront costs?

Leasing a commercial building requires hefty upfront costs, such as attorney fees, a substantial security deposit, and the pre-lease inspection. Upfront costs are high in comparison to buying a commercial space. In fact, these initial costs can total one-sixth of the costs of buying real estate.

Buying a commercial property has equally high upfront costs, including the down payment (up to 40 percent), closing costs, repairs, and appraisal fees. Many business owners do not have the significant capital required to cover these initial costs, which can be better applied toward reinvesting in their business.

How do business owners view building maintenance?

Leasing a commercial property comes with less maintenance headaches. The landlord manages all repairs, plumbing, and HVAC maintenance and any issues related to building upkeep. When leasing, business owners can focus on growing their business rather than be distracted by property problems.

The downside to leasing and avoiding maintenance responsibilities is that this perk comes with a monetary price. The rent will include the expenses related to repairs. The leasing manager includes these operating fees as outlined in the Common Area Maintenance expenses.

Buying a property means the owner is responsible for all repairs. Running a business leaves little time to handle maintenance, making hiring a property management company a necessity. Bringing on board a facilities services team is an added expense that digs deep into profits.

How critical to the business is rent control?

Along with the flexibility of renting comes the possibility of the landlord negotiating an increase in the monthly rent. When leasing, tenants are subject to the rent caprices of the landlord, forcing businesses that are unable to pay the rise in rent to either downsize or relocate.

Buying a commercial property offers price stability and control. Mortgage payments are fixed, and property owners have the benefit of growing equity in their building. In the long term, businesses have an opportunity to sell their property or refinance, bringing in substantial equity for the company.

Are renovations beneficial in the long run?

When a tenant makes improvements, like wall finishes or new carpeting, these enhancements directly benefit the landlord in the long run. As a tenant, the business owner temporarily benefits; but, when it is time to relocate, these improvements cannot be shifted to the new office space.

Renovations stay put when a business owns the property and do not have to be redone with every relocation. As an added benefit, any upgrades made to the commercial space only increases its value when it sells, dramatically spiking the financial returns on the sale of the property. 

How important is the opportunity to rent out space?

Renting extra space to various tenants is a financial bonus of owning a building. With the extra monthly cash flow comes the burden of being responsible for managing tenants. Hiring a property management company is a solution, but it comes with a price tag that eats into rental income profits.

When deciding to rent or buy a commercial space, the factors that will influence your decision are many. Despite the dizzying array of buying versus renting pros and cons, one clear advantage to your bottom line is hiring Chicago Office Movers for your upcoming office relocation.

Work with Chicago Office Movers

Chicago Office Movers is a locally based company with a crew of trained, unionized and licensed movers. A reputable commercial mover, Chicago Office Movers are experienced in moving all types of office equipment, including heavy machinery, lab equipment, and the standard office furniture and computers. Included in its comprehensive services are office renovation and remodeling.

A feature that distinguishes Chicago Office Movers from its competitors is the company’s commitment to the environment. The movers utilize only recycled packaging and have made strides in reducing waste and energy consumption.

Whether your business is a small startup or a large corporation, Chicago Office Movers brings the right experience to fulfill your vision of successfully moving your company across the country or just down the street.

Get a Free Estimate

Streamline your company move with Chicago Office Movers. A free estimate is available to jumpstart your relocation efforts. Give us a call at 312-244-2246 to get started!

When business leaders are motivated by the familiar maxim, “The grass is greener on the other side,” they may just literally pick up and relocate to access more nourishing pastures. Companies shift locations for numerous reasons.

Here are the top reasons why companies move:

1. Access to the Best Talent

A company makes great strides when employees make quality contributions to services and products. In order to access talent with specialized skills, companies are willing to relocate. No longer are potential workers moving to where the jobs are. Companies now move to actively seek out top talent.

For example, a tech startup may relocate to San Francisco, a flourishing tech hub, to attract workers skilled in technology. Or, a business operating in the finance sector may shift to New York City, a key player in the financial market, to appeal to the right candidates.

Plus, businesses are willing to relocate to areas near top universities. The reason is clear: Leading companies benefit from continual access to highly qualified recent graduates, who have the skills to make a meaningful dent in the company’s output.

General Electric, for example, shifted its headquarters to Boston, Massachusetts from Fairfield, Connecticut. As a company with a 124-year history, keeping up with advancements requires access to educated workforces and agile tech companies. The relocation made the leaders’ goals possible.

2. Offer Quality of Life

Youthful, creative talent, like Millennials, are attracted to the hustle and bustle of city life. Cities that stay awake 18 to 24 hours a day are peppered with high-end dining options, luxury apartments, streams of entertainment venues and the convenience of public transportation.

Given that happy employees are more productive, companies are relocating their headquarters to where these young, educated, and skilled workers want to live, work, and play. Growing cities, like Denver, Seattle, and Boston, offer lifestyles that entice youthful workforces, making business leaders consider relocation a viable option to stay competitive.

3. Updated Facilities

Expanding companies may outgrow their existing facility, prompting the need to move to a more updated space. Rather than invest in the scarce time and capital necessary to build a brand-new facility, businesses make the practical decision to relocate.

A new office space may feature co-working environments to encourage collaboration, technology resource areas, plenty of glass, moss walls and generous amounts of desk space. Employees also experience rejuvenation when the company relocates. The boost in morale prompts workers to innovate.

4. Improve the Brand

Customers and investors make critical, initial judgments about a brand based on the company’s office. Business leaders jump at the chance to improve the message they want to convey to outsiders. Relocating gives companies an opportunity to enhance their brand’s personality.

Whether a company’s brand is youthful and fun or traditional can be easily inferred from a visit to the office. Business leaders know their brand’s tone can be transformed by shifting to a thriving city or moving to a contemporary office space.

Returning to the example of General Electric’s recent relocation, the traditional company aimed to keep up with society’s progress rather than be seen as an antiquated business. Their move to a major city helped shape their vision for a business that is able to cater to the current needs of its customers.

Similarly, ConAgra relocated its headquarters to Chicago to rebuild its brand. The decision to move was also partially prompted with the goal of attracting the type of new talent that would, in turn, help shape and reinvigorate the company’s existing brand.

The companies who actively seek to re-establish their brands through relocation efforts show customers and business partners that they are invested in staying current and are able to meet the current demands of the marketplace. Rather than stagnate, businesses aim to shine in evolving times.

5. Decrease Operating Expenses

The cost of running a business is extremely high. Hefty recurring expenses include commercial lease costs (which are based on the building’s square footage), high taxes ,and even environmental regulations. Companies have a reason to move when overhead costs skyrocket.

Marriott International’s headquarters, for example, is currently at nearly a million square feet. With the company’s lease expiring in 2022, the company’s CEO is considering relocating for many reasons, among which are to access a higher quality talent pool.

Companies seek to shift to a location where the roads are passable, public services, are ample and the financial stability of local and state communities is high. Leaders choose areas where utility services are dependable and will not interrupt day-to-day business.

Indiana, for instance, incentivizes businesses to move to the state with a credit that reduces corporate income tax liability. Similarly, Kentucky offers businesses an income tax credit. Louisiana, to facilitate relocations, gives companies a rebate that offsets relocation costs up to 25 percent.

With all the advantages surrounding business relocations, shifting a company is a challenge. When business leaders know they have professional office moving help, like from Chicago Office Movers, relocating becomes less of a hassle and more of an event to anticipate.

Choose a Commercial Moving Company

The commercial movers at Chicago Office Movers are licensed, background checked and unionized to ensure maximum peace of mind for all business clients. All movers are trained to carefully handle all office properties. Included in our moving services are planning, packing and unpacking.

Chicago Office Movers has earned a stellar reputation among its many clients, which include Northwestern University and Alcatel Lucent, among many other major institutions and companies. Whether your office is small or large, Chicago Office Movers is prepared to offer top-notch service.

We are available to move businesses locally, long distance or internationally. Chicago Office Movers will get business owners started with planning their corporate relocation and provide execution of the moving plan. A free estimate is available to businesses ready to embark on their new venture.

Get a Free Estimate

To request a free estimate with our corporate movers, contact Chicago Office Movers at 312-244-2246.

Office trends are forever changing, but one that has stayed in the loop for a while includes the number of companies opening their doors to pets. Job site giants like Careerbuilder, Monster, and more have been posting listings with benefits that include “pet friendly.”

Some sites even include lists of the top pet-friendly companies, as well as job opportunities, as a way to attract more job-seekers.

Pet Friendly Companies

In addition to the high percentages of pet-related businesses, giant companies like Amazon, Google, Ben & Jerry’s, Etsy, and others all allow employees to bring their pets to work.

But despite this growing trend, this can also bring a number of legal and health risks to the table. Here is a list of pros and cons of pet friendly offices.

Pros of Pet Friendly Offices

1. Reduces stresses and helps with relaxation

Statistics have shown that overall employee satisfaction and morale have increased after companies opened their doors to pets. They are also a point of common interest that can promote teamwork and communication – being that they are great ice breakers.

2. Financial benefit

Every pet parent knows that doggie daycare and dog walking services can be expensive, especially on a daily basis. Some just have no choice if they commute long distances or work long hours. But bringing their pet to work can eliminate a lot of these stresses, skipping the rush to get home from work or paying for someone to walk your dog.

3. Boosts Customer Perception

Many customers will react positively when seeing a pet in the office or when they are allowed the chance to interact with the pet; it can decrease their stress and improve their experience with the business. Having pets in the office can also improve the company’s image, giving it an innovative and progressive atmosphere.

4. Recruiting Tool

It’s been proven that pet friendly companies have a higher chance of recruiting and retaining employees long-term than those that are not. These employees also tend to work longer hours and have fewer absences because they don’t have to worry about rushing home to walk the dog or staying home to care for a sick pet.

After reading these pros, making the office pet friendly can really like a good idea. But as with every decision and trend, there are consequences. Making the office pet friendly is certainly not for every business, such as those operating machinery or in a child daycare for example. Make sure to check out this list of the cons before allowing employees to bring in their furry friends.

Cons of Pet Friendly Offices

1. Pets are a Distraction

While some employees may work longer hours and be more productive with pets, others won’t. Pets can be a distraction for both the owner and neighboring coworkers by barking, whining, and needing frequent walks. They can also attract others who want to interact and play with the pet, when they should be working instead.

2. Allergies and Phobias

The number of people with allergies to pet hair and dander will never improve. While some are willing to deal with the sniffles, others may battle severe reactions and even death when exposed. Some employees may have developed phobias of being around certain types of animals due to past experiences. To combat this issue, some offices are able to designate pet-free zones for those in these situations.

3. Damage to Company Property

As all pet parents are aware, pets can destroy anything, especially shoes. If pets are brought to the office, accidents will happen. Chewing the furniture, carpet, or peeing inside are bound to happen at some point. It’s a risk that all companies face the minute they say “yes” to allowing pets.

4. Legal and Insurance Issues

Nobody will know the pet better than the owners, but as they are animals, their behaviors can be unpredictable. An office environment will be foreign to any animal; therefore, all pets will have different reactions. Different reactions can include fear and being nervous, excitement, and even aggression.

In addition to their behaviors, dogs can trip and even bite coworkers, service providers, other pets, and even customers on company property. This opens the door to a number of insurance and legal issues. Before allowing any pets in the office, discuss all possibilities with an attorney as well as your insurance company to best prepare for the worst situations.

Having a Pet Policy

Having a pet-friendly office environment is a great way to retain employees long-term, but there are drawbacks that all companies will face. Thus, the need to have a pet policy is crucial. This should include what types of pets are allowed, stating the frequency and/or which days pets are allowed, how they are to be contained, and placing an animal on probation (or permanently banning them) for destruction or showing aggression.

Becoming Pet Friendly

Many companies may own the building in which they operate, but others may lease from an association. Whether or not that association allows pets is up to them, so the employer may have no say in whether to allow pets or not. If having a pet friendly office is something you believe in, make sure to discuss this with the building manage before signing any lease. Otherwise, you may need to look into owning the property instead.

Help with Moving

Looking to move to a pet friendly building? Allow Chicago Office Movers to help. Our union professionals are each trained, experienced, background-checked, uniformed, and insured to safely relocate your business. Whether moving across town or across the country, our full-service moving company will work with you - regardless of what you need moved – to ensure that everything arrives to your new location safely and on-time.

Chicago Office Movers also has the resources to move a number of specialty items, including industrial equipment, desks, office furniture, lab equipment, and servers.

Free Estimate

For a free estimate on your next commercial move, contact Chicago Office Movers at 312-244-2246.

Access to a high-quality talent pool, greater workspace, and company expansion are among the top reasons businesses relocate. Hiring professional assistance with this major event offers to relieve many of the stresses associated with a company relocation. Preparing staff for the imminent transition, however, falls upon the shoulders of the business owners.

How to Prepare Your Employees for an Office Relocation

1. Communicate

The decision to relocate, whether to a building across the street or to one out of town, affects employees significantly. Workers will be obligated to consider changes to their commute and re-evaluate childcare situations. Plus, if the new office is significantly further away, your employees will have to deliberate whether or not to relocate. The routine of employees’ everyday lives will be disrupted, making it important to relay the news with sensitivity.

Respecting your employees’ time and contributions means giving them appropriate notice of the relocation. Use an empathetic approach to notify your employees well in advance—at least two to six months—of the move. Loyal workers will be motivated to change gears to better suit the new work arrangements.

Provide a concrete moving date, the new business location and how employees can best prepare for the new office. In addition, give all workers the new office address, phone number, parking amenities and public transportation options.

Keep all employees regularly updated on the move. Frequently sending emails and placing signs regarding the office move helps ensure workers stay in the know. Employees tend to lose trust in the company or experience resentment when managers fail to provide adequate information about the relocation process. Keep communication lines open, making yourself available to answer emails or discuss the move in group meetings.

2. Boost Morale

Along with communicating the relocation plan, give your employees a good reason for the move. Will the new location allow the company to reach a larger number of customers? Can the employees expect better access to technology and other workplace infrastructure improvements?

Involving those who strive every day to deliver optimum service offers a boost in morale, so that they can continue giving their best even in the new office environment. Ask workers for input on the new office layout and ways their new workspaces can help them achieve their finest work. Employees who feel included tend to demonstrate positive feelings toward the company.

Business owners might create transition teams, assigning groups of employees to take charge of certain aspects of the move. Involvement gives workers the opportunity to ask questions, address concerns, and be an integral part of this important milestone in the company’s history.

3. Reorganize

Starting fresh in a new town, city or state provides ample opportunity to declutter and reorganize. Prepping for a new office is the apt time to discard unnecessary paperwork and files. Instruct your employees to pack essential files, paperwork and any small equipment. Provide sturdy packing boxes, labels and plenty of shipping tape to streamline the process.

4. Assign Teams

Relocating an office requires the effort and abilities of everyone in the company. Delegate important tasks to employees to help make the transition as smooth as possible.

For instance, establish a committee to be responsible for double checking the lease dates of the new building. This team should also ensure the utilities (gas, water and electricity) as well as janitorial services and security systems are set up to operate upon the arrival date. This committee could also be given the task of obtaining keys to the new building and receiving necessary parking details.

A second liaison may be instructed to get ahold of the map to the new building. Having employees who are familiar with the new layout is extremely beneficial on moving day. These workers can instruct moving personnel where to place office furniture, including desks, shelving, equipment and other property. If your office features specialized equipment, permission from the vendor may need to be acquired. This second committee can request and obtain necessary authorizations.

5. Work with a Mover

You may even wish to delegate to a third committee the job of hiring a professional moving company. This third team could be tasked with the additional responsibility of bringing on furniture installers, design firms and necessary contractors to ensure an easeful transition.

The committee should seek a professional office mover who is experienced in office relocations and offers valuation coverage. This group of employees can also be in charge of getting moving quotes and determining whether or not the mover offers fixed rates.

Shifting offices is a team effort. Ensuring success starts and ends with a constant flow of communication among employees and between business owners and their staff. Upon the move, a company’s culture has plentiful chances to reinvigorate. While relocating an office is a taxing burden, the results are well worth the financial investment, time, and energy.

Chicago Office Movers

If you plan to hire or designate staff to handle hiring an office mover, turn to Chicago Office Movers. As a professional office moving company with licensed and union movers, Chicago Office Movers takes the hassle out of moving day.

Chicago Office Movers are experts in office moves of all sizes. Our numerous awards, years of experience, and five-star reviews are validation of our professionalism and skill. Area customers include Northwestern University and Alcatel Lucent, among many other small, large and well-established businesses.

Included in Chicago Office Movers’ comprehensive list of services are paperwork storage, the option for short- or long-term storage, availability to move locally, long distance, or internationally and insurance contracts. Our professional movers have the manpower and equipment to shift all types of office goods, such as IT systems, lab equipment, electronics and cubicles. We also handle packing and unpacking, alleviating business owners of this time-consuming task.

At Chicago Office Movers, we take pride in our professional team of movers, years of experience, and essential equipment.

Free Estimate

For invaluable office relocation advice and a free estimate, contact Chicago Office Movers at 312-244-2246.

As a small town with a big city feel, Chicago lures businesses far and wide. Micro restaurants, like EL Ideas, and locally owned bakeries, like Do Rite Donuts, have as much success in the Windy City as Fortune 500 companies in the area, like Boeing Co and Motorola Solutions.

Despite being an underserved city, with a worrying crime rate, poverty, and unemployment, the following telltale characteristics make businesses in Chicago thrive.

1. Location

A company located in a major city like Chicago attracts other businesses. Many leaders at the most successful Chicago companies have their roots in the Midwest, either growing up here or attending school in the area. Their connectivity means they have access to countless invaluable contacts with whom they can strategize or brainstorm with the purposes of advancing their businesses.

O’Hare Airport is 45 minutes from Chicago’s downtown, making greeting traveling clients a breeze. Chicago business people who travel know the city’s central location gives them only a two-hour flight to New York or a four-hour flight to San Francisco. Meeting seamlessly with regular, sporadic or potential customers is a convenience and boosts business.

2. Reputation

A wealth of businesses in Chicago are proud to boast of a stellar reputation. Several of the country’s biggest companies have made Chicago their home. MillerCoors, Trans Union, and ACNielsen are just a handful of well-recognized names in Chicago business.

A reputation of excellence is critical for many corporations in Chicago who transact business with international customers; in such scenarios, maintaining a solid reputation is key. Successful Chicago businesses rely on their first-rate reputations to attract businesses on the other side of the globe.

3. Source of Customers

Big businesses in Chicago attract quality customers. For example, the majority of customers for a Chicago-based technology company will be Midwest firms. Chicago’s increasingly diverse economy leads the city to possess one of the biggest sales regions. Given several major business headquarters are situated in Chicago, the city has innumerable opportunities for B2B transactions.

4. Spirit of Cooperation

Chicago has the reputation for being a community of friendly people who support colleagues, business partners and, generally, each other. Chicagoans are known for exuding humility, offering respect and lacking entitlement.

Entrepreneurs, for instance, have the tendency to cooperate and collaborate. The selfish mentality of “what’s in it for me” is virtually nonexistent in the Windy City. The environment of cooperation floods the city’s business climate with continual enhancements.

5. Skilled Workforce

Chicago is home to tech savvy workers, entrepreneurs and software developers. The city offers an endless stream of opportunities for like-minded and even dissimilar employees to exchange ideas and, consequently, cultivate advancements that are beneficial to business.

With several top universities in the area, Chicago businesses have ample opportunities to recruit exceptional talent. The surge of new graduates relocating to the East or West Coast has passed; more qualified graduates are choosing to remain in Chicago to either start their own businesses or contribute their skills to a major corporation.

5. Transport Options

Accessible transportation is vital for competing in business. Varying means of transportation connect businesses with suppliers, customers and chain partners. Customer satisfaction heavily relies on the ease of transportation. When transportation is difficult, businesses have less available means to serve customers.

Chicago offers plentiful transportation options, making conducting business with a client on the other side of town relatively easy. In fact, Chicago has a public transportation score of 8.1, the highest in any US city, according to Chicago Reader.

6. Growth Potential

Chicago businesses have growth potential that result from the rise of economic opportunities. Consumer spending in 2014 was a major factor in the city’s business growth. In 2014 alone, business expansions in the city brought in tens of thousands of new jobs and over six billion dollars in investments.

Industries that make a continual impact in Chicago include manufacturing, retail, insurance, finance, digital/media, transportation and healthcare. 

7. Employees’ Quality of Life

Workers who enjoy the neighborhood in which the live tend to stay in the organization in which they work—or at least stay in the same area, finds Harvard Business Review. Environmental reasons play a pivotal role in whether top talent stays in a company. Skilled companies give their talent reasons to stay; as a result, employee turnover is low.

Given the importance of environment, successful Chicago businesses offer employees numerous avenues for rest, relaxation, and leisure. Employees are surrounded by affordable fine dining options and extravagant shopping centers.

Plus, in comparison to San Francisco or New York City, Chicago’s housing market is reasonable. Renters can find luxury accommodations with pools and tennis courts rather inexpensively in the city, making living and working in Chicago feasible.

Chicago Office Movers

Chicago is a unique city, a town of big businesses, small companies and supportive individuals with a spirit of cooperation. When you discover that Chicago is one of the country’s most ideal cities in which to conduct business, you may decide to relocate. If relocating your office is on the horizon, turn your attention to Chicago’s most renowned moving company, Chicago Office Movers.

Specializing in office relocation, Chicago Office Movers handles every aspect of the move, from start to finish. Customers have several options when moving, including short- or long-term storage, paperwork storage, insurance contracts, corporate relocation planning and unpacking to complete the move.

Chicago Office Movers safely and securely move office equipment, IT systems, antiques, science lab equipment and office furniture, among a variety of other goods.

Who We Have Moved

Whether your business is moving locally, long distance or to an international location, Chicago Office Movers will provide the most optimal moving experience. The union movers have shifted the businesses of several well-known entities, including Northwestern University and Alcatel Lucent.

Get a Free Estimate

Chicago Office Movers takes the hassle out of business relocation. You work with highly trained professionals who are licensed and background checked. Give us a call at 312-244-2246 or fill out a contact form for a free estimate on your next business move.