What To Look For ... and Look Out For ... With Shared Office Space In Northern California

Posted by: Becky S.

 Office space in the Bay Area/Sacramento and all around Northern California is a major overhead expense for any growing business, which makes the concept of shared office space appealing from a financial standpoint.  There are many different forms of shared office space and each has its benefits and drawbacks. 

The idea is to become educated on all the options available so that you can pursue a shared space environment suitable for your personal style and your business.

 Co-working space

 Co-working is a form of shared space where users, typically small entrepreneurs and free lancers, find each other often via informal networking and sublease space from a sublessor with similar interests, and share the cost of the office space. For example a medium size software development company in the electronic game industry may sublease space to other software developers that are a good cultural fit.

 Pro: Good cultural fit by design and may provide for a stimulating work environment. Profit making is not the #1 motivation, which often makes co-working a low cost option.  

 Con: Sublessees are subject to change of heart by sublessors. Since revenue is not the main motivation, the process is inherently unreliable and the quality of service somewhat random. The match making process is typically not organized and can change on a dime.

 The bottom line: Beware that the “beautiful bride doesn’t turn into the wicked witch!”  To be safe, find co-working space through your own network and work with hosts that are unlikely to kick you out.

Executive Suites

 Executive Suites offer private offices that can be rented on a month-to month basis with access to conference rooms, copying room, and often phone answering services. These spaces were traditionally successful for attorneys, CPA’s and other professional service firms.

 Pros: Flexibility of terms, expansion and contraction, low upfront investment (possibly furniture), reliable

 Cons: Disparity of service quality and building grade across operators.

 The Bottom Line: Look for reputable operators who have been there for years. Do a Google search for “Executive Suite” in your town, bypass the listing sites and look for websites of direct providers in your area.

Office Business Centers and On-Demand Office Providers

 Office Business Centers (OBCs) are the 21st Century evolution of Executive Suites. They often provide furnished offices “on-demand” in Class A and Class B commercial office buildings, VoIP telephony with all bells and whistles like Unified Messaging, and a series of additional services on a pay-per-use basis. They help project a stronger and more professional image of your business and cater to professional firms, startups, and corporate users that may have 1 to 20 employees. Sophisticated OBC operators leverage their economies of scale and purchasing power to pass on to the users a low total cost of ownership of a fully hosted “serviced office.”

 Pros: Reliable, flexible for on-demand, expansion and contraction, no upfront investment, pay as you go

 Cons: Sometimes hard to differentiate an Executive player from an OBC player

 Bottom Line: Google Search for “On-demand offices” in your desired location, avoid listing sites, and select an operator with a local portfolio of multiple locations and preferably one that belongs to a large network of OBC’s like Alliance Business Centers Network (ABCN) with 650 locations worldwide.

Virtual Offices

 Virtual offices, or part-time offices allow you to enjoy the bells and whistles of a full-time space such as a professional business address, answering services, and access to offices and conference rooms, without the commitment and overhead of actually renting the space itself.

 Pros: Your business projects as established and credible, and you enjoy technology services comparable to what large companies utilize.

 Cons: Restrictions on services such as only being able to utilize the facility during business hours, and a high volume of other companies using the same address.

 The Bottom Line: Shop around and find a reputable service provider that offers flexible/easy terms and offers a virtual package that makes sense for your business.

 In addition to weighing the benefits and drawbacks to these types of workplaces, remember to keep in mind that you’re sharing office space with other professionals that may be completely different from the field you’re in.  If you’re looking for a very specific type of office setting, and want to have total control over who comes in and out of your space, then a shared environment may not be for you.  The idea is to leverage the services a shared environment provides until your business is stable enough to afford its own infrastructure. 

 Kim Seipel is a Center Manager for Pacific Business Centers (PBC), the leading provider of On-demand and Virtual offices in Northern California. She helps Bay Area corporations, small businesses, and home-based entrepreneurs take advantage of the escalating demand for cost effective office space solutions. To learn more about Pacific Business Centers’ hosted office solutions, visit: http://www.PBCoffices.com .)

Last updated: 03.09.2009 03:52 PM