Office Space News
The truly flexible office space company
Published October 23rd, 2008 by Mike Sullivan
I recently wrote about a merger concept between a traditional commercial real estate company and a serviced office, mentioning how a company like this could help corporations more effectively and efficiently manage their real estate.
However, what I didn’t discuss was how a company that owns and manages a variety of office space types can truly help its clients long term, especial startups, SMBs and other businesses who need flexible space.
One of the downfalls of the office business center model is that it is difficult to have a high level of loyalty. Many clients aspire to grow out of their space, or need a different type of space in the long run. Most serviced offices cannot truly provide for this type of growth or change. So, their clients move out to find bigger or different types of space. They are perfectly happy with the services; they are perfectly happy with the office; often, the client laments leaving because of their experience. However, they move out simply because the operator cannot fulfill their growth needs.
I know of few other industries in which clients leave happy, never to return.
I believe this presents a huge opportunity for real estate companies to concentrate an array of commercial real estate offerings in a city to offer companies space for all phases of growth or contraction. This allows a company to feel comfortable signing a long term agreement, knowing they are not “stuck” in unsuitable space. And it allows the real estate company to offer real estate to a broader audience, and keep them “in the family”.
In a future post, I will discuss a company who is doing this rather successfully in London.
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Office space trends of the future | aBetterOffice October 25th, 2008 at 7:49 pm
[...] the hands of the executive suite industry, and to the points I have been making <a href=”http://www.abetteroffice.com/the-truly-flexible-office-space-company/“>in some other [...]
Marcus Hester November 10th, 2008 at 9:47 am
I was glad to see the follow up post to the CBRE headline. I see the same opportunity, and I am amazed that no one has tapped into it yet. This is only a value-add for the commercial real estate companies, a way they can hold their hand through various stages of growth and assure that they keep that customer every step along the way — even if downsizing is an unhappy reality. For all the talk about how much it costs to acquire a new customer, this seems to be one answer to breeding customer loyalty, especially in a shaky market. I’m interested to learn more about the successful examples you mentioned…
Maggie Correta November 12th, 2008 at 6:53 pm
You said, “One of the downfalls of the office business center model is that it is difficult to have a high level of loyalty.” That’s spot on. It’s sort of a transient model in many ways, almost like a hotel. You’ve heard of extended stay hotel suites. The business center model reminds me of that in a way. You use it when you need it. And that might be once a year or once a month. But when your business changes, so does your demand for those services.
To your point, if the serviced office space could find a way to meet those shifting needs we could see a new phase of growth. Strategic alliances with larger office parks could be one solution. And, as you said, real estate companies are another.