When considering a corporate relocation, there are many contingencies to weigh. The difficulty of the transition, the cost of long distance moving and storage and the perks of your potential destination are all important factors. One consideration often overlooked, however, is the state of office vacancies. Just as the benefits of moving to a new home vary depending on the housing market, relocating to a new office is a decision that should be based largely on the office real estate market.
And now - because of the constrained economy and lower overall migration levels - office vacancies are high. According to TD Economics, they remain 3.4 percent above their pre-recession levels. This means that many offices in good locations and surrounded by desirable amenities are more affordable than usual.
Even in New York
Across the country, prime office locations are unfilled. Perhaps the heart of all corporate locations, New York City is in the midst of a flood of available office space, according to The Real Deal, a news outlet devoted to real estate in the Big Apple. The main thoroughfares that traverse Manhattan are flush with space, according to the source, including more than 100,000 available square feet on Sixth Avenue alone.
It's not just the huge markets - Cedar Rapids, Iowa, is also home to a great deal of unclaimed prime office space.
"We will have up to 380,000 square feet of office space available downtown by the end of this year," Scott Olson, a commercial real estate agent, told the Gazette.
This amount is only growing. By 2013 the city expects about 15 percent vacancy rates for older buildings, and 5 percent for the best spots, according to the news source.
As the economy slowly recovers, this won't necessarily be the case for long. For companies hoping to cash in on high vacancy rates, now may be among the best times to relocate.
Capitalizing on the low prices now could allow businesses to expand their operations. Or, the money saved from lower rents could go toward defraying the necessary costs of moving out of state or hiring relocation movers.
Paying attention to the state of the office space market can help your company gain all the advantages necessary to expand and improve.