135 S. LaSalle gets new temporary space venture

By Andrew Schroedter, June 17, 2009

(Crain’s) — A new venture that will provide temporary office space and support services to small businesses has leased 28,000 square feet at the former LaSalle Bank Building.

Barrett Office Suites & Services LLC will open its first location in August on the 21st floor of the Art Deco tower at 135 S. LaSalle St., says company owner Suzanne Barrett. The space includes 51 offices in addition to cubicles, a kitchenette and conference rooms is the company’s first location.

Ms. Barrett thinks demand for temporary space will continue to grow as the ranks of unemployed swell and more people start their own businesses or become freelancers and need a place to work.

But in her quest to win tenants, she says she knows she’ll have to beat out more established providers like Regus Group PLC, a London-based temporary office space company with more than 25 Chicago-area locations.

Still, the recession remains a good time to start a temporary office business because companies can lease space cheaply and pass the savings along to their tenants, says Ed Zaibak, founder and president of Chicago-based Chambers Business Suites Inc., which owns and operates a 25,000-square-foot business center at 35 E. Wacker Drive.

“You want to be able to offer the space (to individuals) at under $1,000 per month,” he says.

Terms of Barrett’s 10-year lease, signed earlier this month, were not disclosed. Chicago-based real estate firm Ann Anovitz Associates represented the company.

In addition to office space, Ms. Barrett will offer services such as bookkeeping and administrative and information technology assistance. In 2003 Ms. Barrett founded Barrett & Associates, which provides small companies with services including back office, accounting and overseeing projects like office space build outs. “Unfortunately, there are a lot of people looking for a place to go,” she says of her new venture.