Office Space News
Preferred Offices Acquires Synergy Workplaces
Published August 31st, 2009 by Jennifer LeClaire
Preferred Offices is on the move, well, sort of. The Washington, D.C. alternative workspace solutions company just acquired some strategic business center assets that make way for expansion into new markets in major cities.
Preferred Offices snapped up some of New York-based Synergy Workplaces’ properties. The acquisition more than doubles Peferred’s operations from 10 locations in the metro-D.C. area to 23 offices in seven new markets. Preferred will operate serviced office space brand to southern California, Florida, Atlanta, Boston, northern New Jersey, Westchester (NY) County, and Chicago under the Synergy flag. Altogether, Preferred will serve more than 1,500 serviced office clients around the country.
“We are delighted to complete the acquisition of Synergy Workplaces, which has carved out a niche as one of the most innovative companies in the alternative workplace sector. This acquisition creates an opportunity for Preferred to build on that innovation, and to expand into several key U.S. markets,” says Joe Wallace, CEO of Preferred Group. “Like Synergy, we believe everyone deserves a great office: great looking, highly functioning, professional, stimulating, and fully-equipped with reliable communications and data infrastructure. We try to make a positive difference in the lives of our clients every single day.”
Preferred Offices is known for providing fully-equipped, furnished, staffed and technology-enabled office environments on highly flexible terms in the heart of the nation’s capital. Growing companies, small businesses and entrepreneurs tap into Preferred’s offices-on-demand model to avoid costly investments in workplace infrastructure and inflexible long-term leases.
“We believe that businesses are rethinking their approach to how they create and provision work environments—they want to tie up less capital, shed long term obligations, stay flexible, and move the workplace closer to employees and clients,” Wallace says. “We aim to play a material part in that reshaping, and to help change the way people work in the future. Incorporating the vibrant Synergy brand into Preferred Offices, and bringing on Synergy’s dedicated team members moves us closer to that goal.”
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Maggie Correta August 31st, 2009 at 4:51 pm
Nice. I wonder how much Preferred paid for Synergy, and why Synergy was willing to sell out. Either Preferred made Synergy an offer it couldn’t refuse for those serviced office spaces or Synergy was struggling in its local markets. If so, it could be possible that Preferred is inheriting distressed serviced office properties.
Rob Zeus August 31st, 2009 at 4:54 pm
I wonder what the synergy was in this deal. Pun intended. For Preferred, it’s a rapid way to expand into major markets. But since it’s not carrying the Preferred name, it’s seemingly not about building a brand, but rather building revenue streams. Those markets listed are healthy serviced office markets. It will be interesting to see if Preferred goes on a buying spree.
Elizabeth Sanchez August 31st, 2009 at 6:35 pm
That’s a pretty big footprint for Preferred. It adds a tremendous amount of office space. This is really big news in the executive office suites industry. Consolidation is usually a sign of a maturing industry. The big serviced office providers will get bigger while the small ones get absorbed. In this case, Synergy was even bigger than Preferred, which leads me to believe it was the weaker of the two serviced office groups.
Marcus Hester August 31st, 2009 at 6:57 pm
I know Preferred is pretty high end. I don’t know much about Synergy Workplaces. The name sounds pretty high tech. This is good news for folks in D.C. who love Preferred but sometimes travel to other parts of the country. Where they have officed at a Regus office space, now they’ll have the opportunity to stay with the same company.