Office Space On Demand

Traditional office space can be a blessing — or a curse. Such space usually comes with a long-term lease, anywhere from three to 10 years. This is useful for some companies — typically mature, well-established firms that have a predictable track record and healthy cash flow. These companies can negotiate a lower rent over a longer period of time.

But sometimes standard space and long leases are a burden. Some small businesses, especially young companies, may have uncertain prospects and unpredictable cash flow. Owners don’t want to be saddled with a long-term lease for which they might be personally liable. Or perhaps a company has seasonal or short term needs, or wants to test the waters with an expansion or a branch office in a new location.

Short-term, ready-to-use office space can help businesses like these accommodate staff and still stay flexible. Simply put, this is an office you can move right into. It’s fully equipped and ready to go, with high-speed Internet access, phone systems, furniture, conference rooms and, often, a receptionist to answer the phones.

These office spaces are available in almost every city and offer small businesses maximum flexibility. Entrepreneurs can rent space for one month, three months, six months or longer. They can help you keep your overhead low but give you the appearance of being a larger corporation. There are a few types of short-term, ready-to-use office space.

Executive Suites

An executive suite is a professionally managed shared office space with meeting rooms and business and administrative services. Typically, a company that manages executive suite space will rent an entire floor or two in a well-located office building. They then subdivide that space into offices and/or cubicles for rent.

These suites are often located in a first-class building in the heart of a business district. This means you can have an imposing, professional-looking office in a convenient location with an impressive address. There are also facilities available in second- and third-tier buildings, and at less prestigious locations. Office amenities and equipment are included — and are often top-of-the-line. They may include telephone and voicemail, videoconferencing and high-speed Internet access. The offices themselves are well appointed — carpeted and completely furnished, from the chairs in the waiting room to the conference room table. Staff, such as a receptionist, is often provided and included in your rent. Other services are à la carte, so you pay only if and when you use them.

The suites offer tremendous administrative convenience for the busy small business owner. You get one convenient monthly bill. This will help you manage your cash flow and streamline your bookkeeping. And, best of all, lease terms are flexible. You can rent offices for six to 12 months at a time, or you can even go shorter-term and rent month-to-month. The leases also are no-hassle: no protracted negotiations, attorney fees or brokers. In most cases, you can move in the same day.

There are some drawbacks to the executive suite–style space. The fact that they are typically located in first-class office buildings in main business districts, in “Class A” space, may work well for your business if you are an accountant or an attorney, but maybe not so well if you are a video game designer. While some suite owners are beginning to open offices that are more “edgy” in both design and location, most suites tend to be very mainstream, corporate and traditional. If your business is in an “artsy” industry, most executive suites may feel stodgy and old-fashioned.

A bigger consideration is price. These spaces are available throughout the tri-state area for anywhere from $500 per month to $2,000-plus for an office that would accommodate at most two people. If you need space for more than 10 people, an executive suite can get expensive. They are best suited for smaller businesses with up to five people. It’s also important to understand and take into account how you’ll be billed for different amenities and services. For instance, is telephone service billed as a flat monthly fee, or on a per-call basis?

One last issue with executive suite space: If you want your name emblazoned on the door and your logo splashed all over the walls, an executive suite won’t be a good fit. You will not be allowed to make permanent or significant changes.

Shared Office Space

Sharing space is, simply put, subleasing a part of someone else’s office. Many firms have excess space. They may have downsized, or maybe they rented extra space for future growth and don’t need it yet. For whatever reason, they need tenants. Shared office space is even more prevalent than executive suites. While there are some 3,000 individual executive suite locations throughout the U.S, there are hundreds of thousands of shared office space opportunities. Prices in the greater New York area are roughly comparable to those of executive suite–type space.

What you get with shared office space is the opportunity to locate your company in an office that bests fits you, your style and your business. It can have your mark, brand or aesthetic written all over it. Want to share an office with a firm of young animators who play ping-pong at lunch, or move in with a jewelry designer who brings her Rottweiler to work? You negotiate what services you need or want as you need them.