O'Donnell Commercial Real Estate
Vacancy rates have been on a steady decline since the market has rebooted in 2012. In 2011 vacancy rates for this market were approximately 20%, whereas today they are dropping to 16%.
We believe that due to the lack of construction and the decreased vacancy, that asking rent rates caught up and started to increase in mid 2013. The $2.00 difference in rental rate increases may not seem like much, however over the time of a lease this could save companies thousands of dollars. Here is an example:
Office Size of 2,000 square feet at $18.00 PSF for
5 years = $180,000
Office Size of 2,000 square feet at $20.00 PSF for
5 years = $200,000
This is a difference of $20,000 over the course of
5 years...and this doesn't even account for escalations.
While we can't make any definitive conclusions, we do believe that we will continue to see a decrease in vacancy for the far western suburbs which will in turn continue to increase rental rates. Tenants can lock in their rates now and save them thousands of dollars!
if your company is thinking about moving or expanding NOW is the time to act!
O'Donnell Commercial Real Estate Inc.
40W222 LaFox Rd. Suite N2
St. Charles, IL 60175