When it comes to leasing an office there are a few options to choose from. It’s helpful to know the pros and cons of each before making a decision for your business. The four main options are shared office space, direct lease, office suite, and sublease space. In this series of blog posts we’ll discuss each one. First up is the shared office.

Examples of Great Shared Office Space on Rofo:

The Shared Office:
This occurs when a company has extra office space and leases it to one or multiple businesses. It’s possible to rent anything from single cubicle space to multiple offices depending on how much space the company doing the sharing has. A shared office is usually “Plug and Play”, so everything you need to start working is already there (furniture, internet, etc.), you just have to show up and plug in.

Each shared office is slightly different because the sharing companies usually have a different idea of how they want to structure the rental agreement. Make sure you ask about access to amenities and what is included in the rent. Sometimes companies can be very generous about sharing their amenities like conference rooms and Monday morning bagels, other times not so much.

It’s also beneficial to share with a company in a similar or related field. Just like with roommates in real life it may help your compatibility while working in the same space if you work in similar fields. For instance, if you are financial consultant and wear a suit and tie to work everyday you may not want to share an office with a laid back non-profit full of hipsters.

Finding a suitable shared office is challenging, but Rofo is here to help. New shared office spaces show up on Rofo periodically, so search around. The Rofo team is very conscious of the office space listing churn on the site, so feel free to contact us and we can send you some ideas. It’s also beneficial to reach out to your social networks via things like Linkedin, Facebook and Twitter because many companies may not immediately list space they are willing to lease. In today’s uncertain economic conditions this unused space is becoming more common, it’s a phenomenon referred to as “shadow space” in commercial real estate. You can also post a space need for shared space on Rofo and see if anyone sends you an idea.

Video continues to be a great way to get the feel for an office space without leaving your desk. Check out some of the videos recently posted to listings on Rofo.

Take a look at the corresponding office space listings on Rofo:

4th Floor Mission Street Window Lined Office Space 959-965 Mission St San Francisco, CA 94103

Rent: $3682 NNN | $1.67 / sqft
Size: 2,205 sqft
Lease type: Direct

160 Pine St. 160 Pine St. San Francisco, CA 94111

Rent: Negotiable
Size: 5,367 sqft
Lease type: Direct

Enjoy View of Berkeley/Oakland Hills, Saul Zaentz Building 2600 10th St. Berkeley, CA 94710

Rent: Negotiable
Size: Various Sizes
Lease type: Direct

60 Pierce Ave. San Jose, Great Affordable Shared Office! 60 Pierce Ave. San Jose, CA 95110

Rent: $1,736 FS | $1.50 / sqft
Size: 1,157 sqft
Lease type: Sublease

Start Up Special! 2150 Trade Zone, Great Building! 2150 Trade Zone Blvd. San Jose, CA 95131

Rent: $0.75 / sqft
Size: Various
Lease type: Direct

We’ll be introducing some great new features and an even simpler design in the coming weeks. The number of entrepreneurs and small businesses using Rofo to search for office space continues to grow. We’re listening to your feedback and incorporating into the site.

A run down of the top 5 most viewed listings on Rofo for the month of June. The small and affordable listings are definitely getting the most love. I think it definitely reflects the difficult current market conditions. . Comment and let us know what you think!

1. Suite 1723G, 10% Office, Warehouse, 1 Grade Level Door 1721-1725 Rogers Avenue San Jose, CA 95112

   Rent: $660 NNN | $0.50 / sqft
   Size: 1,320 sqft
   Lease type: Direct

2. Workstations in beautiful Union Square area top floor! 222 Sutter St San Francisco, CA 94108

   Rent: $500 FS | $7.69 / sqft
   Size: 65 sqft
   Lease type: Sublease

3. Warehouse Space For Rent!!! 30872 Huntwood Ave Hayward, CA 94544

   Rent: $875 NNN | $0.70 / sqft
   Size: 1,250 sqft
   Lease type: Direct

4. Cubicles, free T1, near BART/Transbay Terminal 182 Second Street San Francisco, CA 94105

   Rent: $270 FS | $1.35 / sqft
   Size: 200 sqft
   Lease type: Sublease

5. Creative Office/Loft 1209 College Ave. Santa Rosa, CA 95404

   Rent: $394 FS | $2.00 / sqft
   Size: 197 sqft
   Lease type: Direct

Rofo recently visited the Number 10 office and spoke with the founder and CEO, Thomas Tsatsos. Number 10 is a web design firm focusing on open source solutions that serves clients around the world.

Thomas shared some great insights into finding office space acquired during Number 10’s search for their current space. Then Rofo toured the fantastic Number 10 office space at 444 Townsend Street in San Francisco. It’s a unique and well thought out office with a great open layout. They especially enjoy the large windows that allow great natural light, helping the office’s lush foliage thrive and the employees maintain a healthy complexion.

Number 10 Space Interview with Thomas Tsatsos

Number 10 Office Tour

Who are you, what is the name of your company and where are you located?
We are Number 10 a web design and development firm. The address is 444 Townsend St.

Who do you work with?
We work with a lot of bay area companies, we also work on an national level with companies in other states and we have several international customers as well, with a fair amount of focus on Japan.

How long have you been in this office?
About 5 years.

How many employees at this office?
6 in this office.

Why does this space work for number 10?
We’re a design and development firm focused on open source solutions, and some of the philosophies that surround open source include collaboration and transparency. This office sort of lends itself to that philosophy. We eliminate the daily meetings that you see in typical corporations in favor of quick discussions and this open floor plan allows us to do that easily.

What originally attracted you to this to this space?
I would say the sunlight in the space, you know, healthy tans are important. But seriously, we really like the urban look and feel, concrete floors, high ceilings, its really what attracted us to the place.

Did future growth factor into the choice of this space?
We did and that is one of the reasons we selected this space, because it’s a pretty large space for 6 people and occasionally we have contractors come in and use desks as well so it works out really well for us.

Was transportation and location a factor?
Certainly another factor, we’ve got both clients and employees alike that are not in San Francisco and being just a couple blocks away from 280 and 101, not to mention muni and CalTrain makes transportation very simple. This place is very central and accessible.

How did you find this space? Did you use a commercial broker or online resources?
We used a broker to actually find the location. We went around to several places before deciding on this one. I actually prefer using both resources at the same time, because a broker is always going to find something that you might not have noticed, or they might bring something to your attention that you may not have seen online. At the same time going online and just looking at something like Rofo.com, there’s a convenience factor there, and you can see everything there at once, and you can filter where you want to look specifically.

Did you use any professional services for moving, and do you currently use any services in your office?
As far as moving, not so much, because we were moving from a much smaller place, and essentially ended up buying a lot of our furniture specifically for this space. We do have cleaning services and someone that comes in and waters the plants.

Any pros and cons that you’ve noticed?
I would say that the place is relatively uninsulated, so in the wintertime it gets a little bit chilly, but nothing that a few space heaters here and there can’t remedy.

What are some of the lessons that you learned while finding your office space?
Definitely do your homework, get out there and see as many places as you can, just so that you have a frame of reference. Also, you’re going to start to understand the importance of location and aesthetics versus price. One thing, maybe one takeaway is learn to negotiate with the landlord, there’s always some give and take there, not just on price, but also on amenities. You can get maybe some cleaning thrown in, maybe fresh paint or reduced parking fees.

Is there any specific advice you would give to a new company looking for space?
Definitely get out there and look at as many places as you can, its different looking at a list on the internet than actually seeing it.

Google Trends is a tool that tracks how much people are searching for certain terms on Google.  Here are a few  interesting graphs created with Google trends related to commercial real estate search.  The first graph is the average search volume in the USA for the term “Office Space” since 2004.

Analysis: The graph represents the search volume index for the term “office space” since 2004.  The search volume index is the average number times “office space” was typed into Google search since 2004 and is set at 1.0.  The letters on the graph are news articles that Google thought were related to “office space“.   Today the search volume index is about .65 meaning the average number of times people type “office space” into Google search is 65% of the average since 2004.  The official start of the recession was in December, 2007, and since then the graph shows a 35% drop from the average search volume as the demand for office space declines along with the overall economy.

The next graph shows the search volume index in the USA for the term “commercial real estate” since 2004.

Analysis: The number of searches in the USA for the term “commercial real estate” shows an even more disturbing trend, decreasing around 50% from the overall average since 2004.

Google Trends also allows you to compare search terms.  In the next graph the search volume for the terms “San Francisco Office”,”Los Angeles Office” and “Sacramento Office” are compared.

Analysis: The comparison is ranked in relation to the average search volume for “Sacramento office”, which is set as 1.0.  This shows that on average people search for “San Francisco office” and “Los Angeles office” about 2 and 2.7 times more, respectively, than “Sacramento office”.  The graph also shows that in 2009 both Los Angeles and San Francisco search volumes are experiencing a slight rebound that seems to be correlated with the recent positive economic sentiment.  However, the Sacramento office market remains pretty stagnant.  Check out Rofo listings in each of these markets: San Francisco, Los Angeles, Sacramento.

I wouldn’t recommend completely relying on the accuracy of Google trends since there are many variables, but it does give an interesting glimpse into the Google search relationship to current market conditions.  Try it for yourself: Google Trends

This is great commercial real estate for lease. Though this type of space is intended for a light industrial type of use I really think this setup would be excellent for a true office use. I like the idea of having a big roll up door that would give your office environment a real indoor outdoor feel.

150 Executive Park is conveniently located just off of highway 101 near Candlestick Park. The building offers free parking, a free Bart shuttle, and unparalleled Bay Views. The 3200 square foot suite is a fully furnished office space and has updated wiring in place. The suite was designed as an open concept with plenty of natural light and includes a private balcony. The space is configured to accommodate up to 24 employees. Amenities include 2 Deli’s on site, many restaurant choices within a few minute drive and 24 hour security.

Companies seeking a centralized location and easy access from both San Francisco and San Mateo counties will find San Francisco Executive park the perfect home for their business.

Thanks again to Steelcase and our local commercial real estate partners for helping us produce the following office space video:

As we think about expansion cities its hard not to consider the Seattle office space market as a logical next step. We seem to get a fair amount of requests from entrepreneurs and businesses to “get up here soon”.

I was recently catching up with an entrepreneur who started Helphive.com. Its really a great service connecting consumers with Seattle plumbers, landscapers, cleaners, contractors and handymen. They’re solving a problem that exists for consumers that we are addressing on the commercial side.