Friday, February 20, 2009

Downtown Office Space: What a Bargain!

David Morris from Gundaker Commercial has a great article on how businesses can cut their overhead expenses by reducing their rent. In it, he compares average asking rental rates for downtown, Clayton and Chesterfield. It’s clear that downtown offers the most bang for the buck. A Class B tenant in Clayton could upgrade to Class A space downtown and still realize a cost savings while moving to higher-quality space.



Subleases offer an even greater potential savings. According to Morris:

If a company can be flexible for the purpose of achieving optimal savings, there could be some significant savings. For example, according to these charts, a company occupying 5,000 SF of office space in a Class A office building in Clayton with the flexibility to relocate to a sublease space in Downtown would have a savings of $166,800 over three years. Even factoring in moving costs, these are still some real savings.
Considering the current state of the economy, many businesses are going to be looking to cut costs any way they can. The time is right to take advantage of the substantial cost savings offered by downtown office space.

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