Quote:
Originally Posted by Norsider
It's nice when Class B tenants can afford Loop space and push occupancy at older buildings. The only part where it gets a little hairy is when buildings get older, their asking rates are pushed down even as the cost to operate them goes up. The path to obsolescence is always a possibility.
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Cheap,old office space is synonymous with small business incubator. Just comparing what my firm pays in rent to rents in the lasalle office area shows that they either identical or cheaper. The more big tenants that move to these class A beauties, the easier it makes for my firm to move downtown (which we are, yippee! no more reverse commute)
As far as the operating cost versus revenue, it is up to the building manager to know when a building needs to be redone. When it hits this point, they better have renovation plans in mind to upgrade their building.