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Is Your City Booming? Decoding Local Market Trends for Office Space

Published: 07-24-24 Category: Insight

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

A city skyline during sunset, adorned with offices

If you're new to commercial leasing, deciding on the ideal location for your first office is a crucial decision with the potential to be highly stressful. However, when you take the time to research local market trends, you'll be ready to make an informed decision that you can feel good about.

Here, we'll take you through the types of research that will help determine where your business will get the best start in life.

Beginning with search engine optimization (SEO), we'll move on to methods and strategies for analyzing market trends, researching rental rates, and identifying emerging neighborhoods.

After you've finished reading, you'll be ready to find the best office space to lease for your first foray into business.

Sniff Out Market Intel With SEO

While you're probably familiar with the term Search Engine Optimization (SEO), you may be wondering if you'll need to invest hours of time learning the finer points.

Actually, you can use SEO for digging up information about your target area without enrolling in night school.

Here are some ways you can do this.

Google My Business: Set up a Google My Business profile and explore similar businesses in your area. This can provide initial intel for popular locations and competition and introduce you to prospective clients after you're open for business.
Use Local Keywords: Research quickly by using location-specific keywords in your searches, such as office space in [city/neighborhood] or [city] commercial real estate trends. Try several different search keywords to max out your results.
Local Business Directories: Explore online business directories. They'll tell you which areas are popular with businesses similar to yours. You may prefer being near similar business owners for networking or distance yourself from the competition.
Online Reviews: Read reviews of office buildings to gauge tenant satisfaction and area reputation. Also, keep in mind that positive reviews can help you recruit additional staff when the time comes.

Your second step towards identifying market trends in an area requires a more traditional approach.

Go Local to Analyze Business Trends

To find the best lease space for your business, you'll need to get into the habit of being informed about the local commercial real estate (CRE) market, including when it changes.

The Local Beat: Subscribe to local business journals and commercial real estate publications. They're both excellent sources of information.
Dress To Network: Join local business associations and attend CRE events. You'll have opportunities to meet local industry professionals.
Monitor The Money: Keep an eye on local employment rates, business growth statistics and indicators, and economic development plans as announced by city and county governments.

While the previous strategies will help you determine average office rental rates in your area, there are other ways to increase your knowledge.

Research Current Rental Rates

Finding out the going office rental rates is crucial for your budget and negotiation success. You may want to copy the following tasks into a new document, then turn them into a checklist.

This helps you save time by keeping things simple.

Browse online commercial real estate listings in your target areas to get a sense of average asking rents. You can do this right here at MyElisting.
Locate quarterly market reports online published by regional and national commercial real estate firms. Many contain office rent pricing for different neighborhoods, published as square footage.
Connect with local CRE real estate agents and brokers. They can do more than provide current rates—they can also negotiate on your behalf.
Look for rent data published by the city or cities you're researching. These may be located on their websites as part of their economic development initiatives.
Reach out to other business owners, especially those in your industry who also lease office space, and ask what the going rental rates are.

While you may be tempted to stop here, it's well worth looking at the up-and-coming areas in your city. Here are some reasons why.

Locating Emerging Office Districts

Identifying up-and-coming areas can lead to better lease deals and future growth opportunities. These can also be converted into a checklist and printed out.

Startup Ecosystems: Find out where startups and tech companies are clustering, as these areas often become emerging business hubs.
City Development Plans: Local governments often publish details of planned infrastructure improvements and zoning changes on their websites.
Transportation Developments: Check out areas with planned public transportation additions, such as new bus or rail lines. These can bring new business prospects to your office while you enjoy the low lease price you negotiated before transport improvements went live.
Adaptive Reuse Projects: Keep an eye out for old industrial or retail spaces being converted into office or mixed-use developments. This can become the catalyst for an emerging district that draws other entrepreneurs like yourself.
Co-working Space Locations: When you spot an increase in co-working spaces and serviced offices, this often indicates a growing demand for flexible office options in an emerging area.

After you've gathered and reviewed all the data you want, you're ready to sit down, review your findings, and search for office space.

Putting It All Together: Making an Informed Decision

You'll want to consider the following before you decide where your first business office belongs.

Make sure the location is easily accessible for employees and clients.
Look for areas with restaurants, parking, and other amenities that can benefit your business and encourage staff retention.
Consider if the area can provide options for future expansion needs.
Even if you're still working to finalize this, choose a location that aligns with your company's brand.
Compare lease terms and conditions across different properties and areas.

Remember, the right location can provide more than a place to establish your business presence. Ideally, it will provide plenty of networking opportunities, attract new clients and talent, and contribute to your success.

Take the time to thoroughly research and consider your options, and don't hesitate to seek professional advice when needed. Your perfect office space is out there, and with these tools, you're well-equipped to find it.