Shared Office Space
In today's economy it has become of paramount importance to make the best use possible of available resources. Companies need to take very good care of their bottom line and cutting down on expenses is one of the two alternatives to achieve that. One of the most prominent expense items in a company is the rent they pay.
How a traditional lease works
In a nutshell, a traditional office space lease usually runs for 5 years and you are responsible for taking care of the space yourself. This means furnishing it, buying and maintaining all the equipment necessary to run your company and outfitting common spaces like kitchen and conference rooms. Expanding and contracting in this type of setup is always restricted by the amount of space you originally rented.
What is shared office space?
When companies realized that being locked into a 5-year lease was a big risk to their financials, they started to look for ways to minimize this risk. They also noticed that a large portion of their space was not under constant utilization. Conference rooms remained empty for the most part, the kitchen area could accommodate more people than it currently did and when not running at 100% utilization, there were quite a few workstations and even private offices available. And this is where the shared office space concept was born. Suddenly companies were receiving other companies that started to utilize the otherwise empty spaces they had before. This was a major breakthrough but when it all fell into place was when companies were setup to create these types of office spaces to house a large amount of companies.
The big leap
The Executive Office Suite industry was born out of this practice and is currently one of the major business trends in existence. Office operators throughout the world have created just the right type of environment to house a large number of companies and individuals under one roof while adding a lot of value to their offering.
New York is a perfect example of an area that benefits from this type of office organization. In a big city there will always be limited space. Check out our existing listings in some of New York's top locations to find the right fit for you.
The main 3 benefits and then some...
- The first benefit a company will receive when they decide to use this office space share services is that the 5-year lease is brought down even to a single day. A long-term lease no longer straps companies and they can rent for a day, a week, a month or for as long as they want to.
- The second benefit is materialized in the form of cost effectiveness; since multiple companies share common resources, they also share the cost of maintaining them. For example the receptionist area, conference rooms and kitchen area are all shared among tenants and they can use they when they need to without having to keep them empty the rest of the time. The percentage of utilization grows significantly reducing cost.
- The third big benefit is that they pay for workstations actually being used. If your company is comprised of 5 people you pay for 5 workstations. But if you need to downsize or hopefully grow to 10 or 20 employees, you simply amend the terms of your agreement to match your staffing needs on an as needed basis.
- There are many other benefits that come from utilizing a shared office like access to modern office equipment that you would otherwise could not afford, on demand secretarial services, enhanced security and networking opportunities with other tenants.
Who is it not for?
Even with all its benefits, sharing an office is not a good fit for all companies. For example companies with very high levels of confidentiality or companies who need to welcome clients into their own space are not candidates for this setup. Also, companies with special requirements like large warehousing space or show room types of setups may be difficult to accommodate.
How can OfficeList help?
For over 10 years OfficeList has been creating partnerships with more than 2,000 Executive Office Suite operators in the USA and Canada that provide office sharing opportunities. We can hand hold you throughout the process and get you in touch with the key providers where we know you would have all the support that can help your company focus on growing and thriving while forgetting all the administrative nuances related to renting. Take us for a spin. You won't be disappointed.
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