Office Space Advice
Regus Helps Companies Avoid Layoffs with Serviced Offices
Published February 26th, 2009 by Jennifer LeClaire
At many companies, layoffs aren’t enough to satisfy the demands for cost-cutting in the face of a global recession. Savvy companies of all sizes and in all industries are looking for creative ways to trim additional expenses that weigh down the balance sheet, including 401(k) matching, company car leases and office rents.
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Regus claims to have the answer on that last point. Regus, the largest executive office suite company in the world, says its customers save up to 60 percent on facilities costs by adopting a flexible workplace strategy.
If that number seems hard to believe, consider the cost-savings of a fully furnished office equipped with all the technology you need to run your operations. Without having to purchase furniture and equipment, you can literally save thousands from day one. And the monthly office rents are far less than traditional office space. It’s a powerful one-two punch that knocks facilities expenses down to a more manageable level for many companies.
“For most companies, property is their second largest fixed expense,” says Regus Group CEO Mark Dixon. “By introducing a flexible workplace model including flexible property, home office or mobile strategies, Regus enables clients to reduce overall facilities expenses dramatically.”
Why Lease Traditional Office Space?
Regus is enlisting help to herald the benefits of executive office suites. Miramar Securities, a full-service brokerage firm, is sharing its perspectives on serviced office space. Julio Gonzalez, president of the firm, is convinced that Regus is a better alternative than leasing traditional office space.
Here’s his story: After experiencing all of the associated expense that came with establishing an office, Gonzales decided to relocate his headquarters to a move-in ready Regus business center. The office came with the furniture, connectivity, business equipment and administrative support he required.
“The Regus office model helped significantly improve our company’s margins,” says Gonzales. “Regus offers an exceptionally well-trained staff, alleviating any Human Resources concerns and buying me valuable time not having to play HR manager – dealing with vacations, sick days, and performance issues. With Regus, I focus more on top line revenue.”
Taking a Holistic View
As Dixon sees it, Miramar Securities has taken a holistic view of its business requirements and has incorporated a strategy that is yielding positive results. Given the current economic environment, he says, reducing payroll may be inevitable, but this approach is a short-term solution.
“The long-term ramifications of massive lay-offs may hinder a firm’s ability to quickly rebound,” Dixon says. “Companies need to go line by line and identify ways to contain costs. Facilities costs should not be overlooked.”
Whether using a fully furnished office, a virtual office that provides clients with a local business address, meeting room or videoconferencing facilities, Dixon says companies are using Regus’ platform to save money and tackle new business opportunities that will grow their top line.
Determined companies won’t sit idle waiting for the recession to pass, Dixon says. Instead, these companies will grow their way out of this recession by entering into new markets, targeting new prospects and expanding their services in order to drive the top line. Dixon says clients are leveraging Regus’ turnkey office space to open new offices and keep their business moving forward securely, cost-effectively and at a rapid clip.
During this financial crisis, businesses find themselves locked into rigid leases with excess space on their hands. Dixon warns companies to learn from their property missteps and says, “Fallout from this recession should shift how businesses make real estate decisions. The most expensive real estate commitment is the one that sits empty.”
About The Regus Group
In case you aren’t familiar with the Regus brand, the Regus Group offers products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconferencing studios.
Regus’ clients include the likes of Google, GlaxoSmithKline, and Nokia on the Fortune 500 end. But the company estimates thousands of growing small and medium businesses are also benefitting from outsourcing their office and workplace needs to its platform and allowing them to focus on their core business.
Indeed, over 400,000 clients a day benefit from Regus Group facilities spread across a global footprint of 1,000 locations in 450 cities and 75 countries. That means wherever you go, you’ve got a serviced office brand you can trust nearby.
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About the Author
Elizabeth Sanchez February 27th, 2009 at 5:32 am
Once again, Regus is leading the way on communicating its value proposition. I got a new perspective from this article based on Dixon’s insights. It really makes so much sense for companies to tap into the value of executive office suites in this economy — and in any economy. The way Dixon describes it, you really ‘get it.’
Bill Brookshire February 27th, 2009 at 5:34 am
60 percent. Wow. That’s a big number in terms of cost savings on anything, but it’s huge when it comes to renting office space. And Regus isn’t renting shabby office space, either. Regus has top of the line flexible office facilities. Other than an purchasing your own office condo, I’m not sure why you wouldn’t go with a serviced office.
Melanie Jones February 27th, 2009 at 5:36 am
What an angle. I had never thought of it that way. Instead of laying off workers, why not just transition into a more affordable office space? Of course, that does impact the economy as well, but probably not as much as letting employees go. Regus really does get it.
Marcus Hester February 27th, 2009 at 5:38 am
Regus has its bases covered — and it has Corporate America’s bases covered too — when it comes to office space. If Regus executive offices are good enough for Google, it’s good enough for entrepreneurs. Bill is right. That 60 percent figure deserves a wow. The best part it, it’s not inflated. Regus really does deliver serviced office space at such a discount over traditional office space.
Maggie Correta March 2nd, 2009 at 8:23 am
Taking credit for helping companies avoid layoffs is a pretty bold play. For some companies, moving from a traditional office to an executive office suite isn’t going to make a bit of difference. And what about companies that are already using serviced offices? Where do they turn? Flexible office space won’t solve the layoff problems, but I will admit that Regus is on to something with its assertion. For many companies, serviced office space would dramatically reduce office rent and help keep the company running strong despite the recession.
Rob Zeus March 2nd, 2009 at 8:26 am
Dixon made a statement that I really liked: “Determined companies won’t sit idle waiting for the recession to pass.” That’s true. For determined companies that are paying out the nose for office space, they’ll be willing to go through the inconvenience of moving to a serviced office when their lease expires. In some cases, they may even have to negotiate out of those leases or default on them. Determined companies will look at all the options and make the smartest decision for the corporate health and their employees. Serviced office space is certainly a credible option.
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