Office Space News
Dallas Office Market Seeks Serviced Office Solutions
Published May 29th, 2009 by Jennifer LeClaire
While many major corporations are downsizing office space, some entrepreneurs are moving out of the home office and into more professional settings – thanks to serviced office set ups.
The Dallas Morning News is the latest publication to feature a local business owner making the leap from the spare bedroom to the serviced office.
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Sheryl Jean, a reporter at the newspaper, used the anecdote as a jumping off point to explore a trend in the Big D: small tenants shoring up an office market where the vacancy rate has climbed to 21 percent. Jean reports local property owners and managers are redesigning large spaces into smaller offices, with some offering free rent and flexible leases.
Small offices with flexible leases are the name of the serviced office game – and always have been. But executive office suites offer even more that flexible leases. They offer phones systems, Internet connections, mail services, security, a receptionist, meeting rooms, kitchens and furniture, and the list goes on.
Regus is one of the beneficiaries of the trend Jean identified in the Dallas area. Regus boasts 19 locations in the area with prices that start as low as $79 a month.
Noteworthy is the fact that only four of Regus’ 56 executive office suites at the Crescent in Dallas are vacant. Compared to a market that’s suffering with 21 percent vacancy rates, Regus is sitting pretty and proving its model works in a down economy.
With stories like Jean’s running in major daily metros, the serviced office industry is getting widespread attention that should continue to bode it well. The question I have is: Where are Regus’ competitors? Regus is hogging the public relations because it reaches out to the media. Serviced office companies that hope to get some ink need to do the same.
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Maggie Correta May 29th, 2009 at 10:44 am
Regus certainly does take the lion’s share of the publicity in the serviced office industry, don’t they? The Dallas Morning News is a a great paper and this reporter seems to be looking to explore real office solutions in the market. It sounds like an insightful report about office space in Dallas.
Bill Brookshire May 29th, 2009 at 11:10 am
That is noteworthy! Only four of Regus’ 56 serviced office spaces are vacant. Wow. I bet after this article, those offices will be rented too. It sort of makes me wonder if Regus and others will start to bump up their prices for executive office suites. It is about supply and demand, after all.
Rob Zeus May 29th, 2009 at 11:13 am
I think if executive office suites companies start raising their prices right now, they are shooting themselves in the foot. They will look opportunistic. Right now, serviced offices are a savior to many. Office rent increases in this market might breed bad blood. I think they should hold the rents steady.
Elizabeth Sanchez May 29th, 2009 at 11:20 am
Consider awareness raised for the serviced office industry. Now it’s up to Regus and the others in the space to take the ball and run with it when the market recovers. I agree with Rob… I don’t think now is the time to raise office rents. Now is the time to continue to educate the market and demonstrate the value of executive office suites.
Marcus Hester May 29th, 2009 at 11:46 am
21 percent office vacancy in Dallas is huge. And the contrast against Regus’ four vacant serviced office spaces on the 54 units is quite stark. I wonder if Regus or others will rent out floors of traditional office buildings that are vacant at a bargain price and grow the concept that way.
Opher Mizrachi June 1st, 2009 at 5:52 pm
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