It's that time of the year. Your lease is up for renewal and you have to make a decision to renew your lease or look for new office space. You want to stay in your current office, but your landlord has doubled the rent, giving you no alternatives but to find another comparable office at the same rent that that you have been paying. Or even better, your business has outgrown the space you are in, so it's time to move to a larger office space to suit your needs. What about if you are working out of your house and has finally decided to maintain a professional corporate appearance because you ran out of excuses to have your client meet you at your office? In each cases, you will need to find new office space. But what type of office space will meet your needs and fit in your budget? You have heard the terms executive suites, shared office space, business centers, managed offices, fully furnished offices, virtual offices, conventional office space, traditional office space, and serviced offices. So which is which?
As a consultant for a premier office search firm in California, www.officeblvd.com, my focus is to listen to my clients and find out exactly what they are looking for, how big their company is, and what kind of budget do they have. I usually tell my clients that there are basically three types of offices: executive suites, virtual offices, and conventional offices. If you hear any other terms used, it's usually a variation of an executive suite. If my client is a new company, has no sales and no budget, but needs to establish physical presence for credibility purposes, then I would recommend a virtual office.
A virtual office package usually include a mailing address for clients to send you mail, a receptionist who answers your incoming calls in your corporate name, and a small block of conference room usage that you can use to meet clients once or twice per month. This package is not designed for you to go to your office on a daily basis, rather it gives you a corporate identity. Prices are normally $99 to $299, more or less, depending on the package you choose, and the location of the office. Some of my offices have locations all over the city and state, so if you need to meet a client in Beverly Hills, and your home office is in Irvine, you can set up a meeting in the Beverly Hills office if you are already a tenant. Lease terms are usually one year. Some office providers allow you to fill out online applications and pay with a credit card to secure your virtual office within hours. There is usually a setup charge and a deposit. A good office broker can negotiate the setup charges. This is where it benefits you to work with me.
An executive suite is a fully managed office with reception, fully furnished office, and fully furnished conference rooms and amenities. Your personal office is a small room, anywhere from 100 sq ft to 300 sq ft. You have full control of this office and can come an go as you please. You will have a telephone line set up for you as well as high speed internet connection. The key to the office belongs to you. At the same time, there will be other offices on the same floor with other businesses just like yourself. Everyone share the common areas such as the reception area, the conference rooms, and the kitchen/breakroom. The conference rooms are available on a reserved basis, usually with 12-24 hours notice, sometimes less. You will have a block of hours that you can use the conference room, if you go above your allotted time, there will be a premium charge, around $25 per hour. The biggest advantage for an executive suite is the receptionist. You will have a receptionist who will take inbound calls for you in your company name and tranfer the calls to you. For a small upcharge, she will screen the calls for you. There are miscellaneous fees for other services as you need them, but in most case, you will know what exactly what your monthly rent will be, which includes everything stated above. Flexibility also allows to have shorter lease, from month to month to 24 month leases. A typical lease is 6 to 12 months. Another huge benefit is that as your company grow and you add staff to your company, you can take additional offices on the same floor without changing your physical address or phone.
When I work with a client to find an executive suite, one of my key question is, "What is your maximum monthly budget?" If you are used to renting an office for $500, and paying $100 for phone, $100 for internet, and $100 for miscellaneous, then you should have an $800 budget for an executive suite. This is because one price will cover everything in an executive suite.
What if your requirements are larger? If you requirements are 1000-10000 sq ft or bigger, then an executive suite will not work for you. In this case, you will need a qualified real estate agent in the area that knows the area and can work for you to find the best space for your needs. This agent will meet with you, have you sign some type of buyer agreement so they can work for you. The minimum requirement for a conventional space is usually 1000 sq ft, $3k-$5k monthly budget minimum, and 3-5 year lease. There will be exceptions, of course, however, most agents doesn't like to work under those requirements. officeblvd.com has excellent relationships with a major real estate firm in Beverly Hills and Orange, and we know the real estate market in California better than any other brokers in the market. This is where it pays to work with us.
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