Office Space News
Q & A: Regus Exec Shares Insights into Serviced Office Market
Published January 22nd, 2010 by Jennifer LeClaire
In 2009, Regus opened its 1,000th serviced office facility. And the executive suites giant shows no signs of slowing down.
Now, Regus is sharing some of its insights with the world, such as how client needs are changing in the midst of a recession, what challenges are facing business as it relates to office space, and much more.
aBetterOffice.com caught up with Sande Golgart, West Region vice president of Regus Americas, to discuss some of the latest trends in the serviced office industry.
How have your clients’ needs changed over the past few years, since the onset of the recession?
The single biggest change we have witnessed is with the small business groups and their expectations. It used to be that a small business was just looking for office space and that’s it. In today’s world, a number of our small business clients once worked for Fortune 500 companies. Many of these individuals are increasingly looking for the same type of workplace amenities, professionalism and quality that they were accustomed to for so many years in the corporate world. So we’re finding that our customers are becoming more sophisticated and increasingly more demanding in what they’re looking for and what they expect. We welcome this trend because it helps reinforce our commitment to not only meeting but more importantly exceeding all of our clients’ expectations.
Are there any specific products/innovations that you’ve introduced over the last year or so that are geared towards meeting the changing needs of your clients?
Over the past year we’ve improved our popular Businessworld membership program, which was introduced in mid 2008. Our Businessworld membership effectively eliminates the waste associated with having full-time, dedicated office space if you’re only using it on a part-time basis and it allows mobile professionals immediate access to private office time based on their level of need. We now offer Businessworld at local, national and international levels. This allows us to customize our offerings even more based on our clients’ needs. For example if a client does business all over Los Angeles she could subscribe to the local Businessworld program and gain on-demand access to any of our LA centers. Conversely, if a client does business abroad he could subscribe to the international level and have on-demand access to private office time at any of our global locations.
What do you feel is the biggest challenge facing businesses as it relates to office space or workplace needs?
The single biggest challenge is finding flexible support during uncertain times. By uncertain times, I am not referring to the current recession. I am referring to the many challenges that business owners are facing every month and finding the right amount of office space and support that will allow your business to grow or downsize in an uncertain economic climate is a major concern for companies of all size. We continue to hear about the growing importance of flexibility when we talk to prospects and even existing clients. Imagine being a business owner today and trying to predict the next five years of growth for your business. Landlords everywhere are forcing tenants to make three- to five-year decisions on the future of their businesses when signing a traditional lease.
What areas/markets within your region do you expect the most growth in over the next two to five years and why?
- We see the greatest opportunity for future growth in the greater Los Angeles area or Southern California. Southern California has three key factors that contribute to our optimism for its future.
- Southern California has an enormous population of talented professionals, many of whom are entrepreneurs and small business owners who are looking to improve their business’ image.
- Commute times are only getting worse and greater LA already has multiple “business districts” – meaning they are already open to the idea that you can work in many locations outside of the downtown core. This fact opens our industry up to a world of opportunity. We’re increasingly opening centers that are located in more suburban areas – giving our clients the opportunity to work closer to where they live.
- Southern California has very distinct features that people want. People will find innovative ways to continue living near the beach and in the sun and if they can work closer to where they live and play that’s an added bonus.
What do you feel will be your region’s biggest opportunity in 2010?
Our biggest opportunity is finding businesses who don’t know about the great alternatives that we offer to leasing traditional space and introducing them to the new way of working. Even though the word is getting out – our industry is still a well-kept secret. When businesses find out about the great benefits and services that we offer it’s usually an easy sell. The single largest group of office seekers are those groups of 10 people or less – yet this group continues to be the most neglected. Very few landlords are willing to do much of anything to help this group. We are one of a very limited number of providers who caters to this group.
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Bill Brookshire January 22nd, 2010 at 8:29 am
Interesting to see Regus’ view of the world, at least from the Western U.S. Seems to be in step with the overall strategy Dixon keeps communicating, but these extra details about the serviced office market as Regus sees it are noteworthy. I found it particularly interesting that Regus plans to explore executive suites in Southern California suburbs.
Elizabeth Sanchez January 22nd, 2010 at 8:35 am
He seems to be pushing the Businessworld membership as innovative. I am not sure it’s all that innovative, really, but I agree that it can be valuable for road warriors who need some office space for a few hours or a few days in a foreign location. I also agree that the serviced office industry is still a well-kept secret. So much more publicity needs to be done to get the word out.