The second biggest mistake made by tenants looking for office space is not allowing enough time for the process. Far too often tenants will not get started early enough and have to settle for less than they could have had otherwise. This applies to tenants who are looking for conventional space and not executive suite, virtual office space, or co-working space. Typically a tenant can be in these spaces as soon as the next day or at least within the month.
Tenants looking for conventional office space under 10,000 should get started at least 6 months prior to their move in date. This will allow enough time to find some good alternatives, negotiate the best deal and have any tenant improvements completed for an on time move-in. This is true even in a soft market. In fact, even more so since there will be many more possibilities to investigate.
For office tenants over 10,000 square feet, at least 9 months should be allowed. The larger the tenant, the more complicated the process and more time is needed.
Two relatively new office space trends that have impacted the general office space market are co-working office space and virtual office space. As we approach the three year mark of the recession and slow recovery, many professionals have had to look for means to reduce their overheads. With conventional office space costing an average of $4,000 per year per person along with the additional cost of staff, equipment, furniture, telecommunications and Internet on top of that, many small companies have found other means to the way they work that does not include conventional office space.
Two of those alterative workplace methods are co-working space and virtual offices. Co-working space is space in which business people can use tables, conference rooms and shared facilities such as WiFi and videoconferencing on as needed and a pay-per-use basis, significantly reducing overhead. In manu cases it is simply an open room with tables or can be similar to a lounge.
A virtual office is essentially an official address, in a typically prestigious building, in which a small business can have a full time identity and use the facilities on an as needed basis.
Both of these alternatives have impacted the office space market by reducing the need for small business to have a full time office space. Executive suites have been impacted hardest since many of these busisness would have chosen full time offices with them. Even after the effects of the recession are gone, many small businesses will continue to use these alternatives, In fact, it is our believe that these modes of office space occupancy will continue to expand and become even more popular, not just with small businesses, but many large businesses as well. They fit the lifestyle of many younger workers better than conventional office space does.
According to the article below from the OC Register, 20% of professional employees are considering quitting their jobs. Undoubtably most won't considering the economic climate and the difficulty in finding jobs. But, if you are one of the ones who act on it, there are many options available to lease office space to start your own business. The options range from a home office, to virtual office space or executive suite office and of course conventional office depending on your needs, budget and image requirements.
"Two out of five professionals think about quitting their jobs after taking their summer vacations, according to Regus, a provider of flexible workplace ideas. Can you relate?
Of course millions of workers heard about JetBlue flight attendant Steven Slater's spectacular "I quit" recently, grabbing a beer and sliding down the plane's emergency chute. But he hadn't been on vacation. In fact, he probably needed one.
But apparently a vacation doesn't help for many workers."As workers pack up their swimsuits this summer, they are more likely to dwell on the pros and cons of the job that is waiting for them at home," said Regus Regional Vice President Sande Golgart.The top reasons survey respondents gave for wanting to quit: * Lack of communication with management 40% * Lack of career advancement 37% * Feeling overworked 34% * Company lacks vision 31% * Colleagues are incompetent 28% * Lack of administrative support 26% * Rude colleagues 21% * Boss takes credit for respondent's work 20%"
Stress caused by overwork has escalated during the past recession with people working harder and longer to make sure they can pay their bills," Golgart said"
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WSJ.com May 16, 2010 - The recession forced many chief executives to find new ways to run their business—and many are relying on those changes to help fuel growth and cost savings in the recovery.
During the slump, Regus PLC, a provider of outsourced office space, launched more lower-priced services after customers cut spending. A Bayer AG division sought new business in alternative energy when its traditional car and construction markets dried up. Duke Energy Corp. solicited employee ideas for cost cuts when demand for energy fell.
Now, all of those initiatives are outlasting the recession, executives say. "They're not going back to the old way," says Harold Sirkin, a senior partner at Boston Consulting Group.
Regus, which has over 400 locations in the U.S. and others in Europe, hoped at the beginning of the recession that corporate clients would use more of its office space and video-conferencing facilities as firms slashed travel budgets and downsized their own offices.
But that strategy didn't pan out. Corporate clients did cut travel budgets—but they cut back on use of Regus's space too.
The company ran focus groups to discover clients' concerns, something they didn't do very often before the recession, according to CEO Mark Dixon.
Focus groups said they wanted more office-use options at a broader range of prices, especially on the lower end, which Mr. Dixon also thought would attract small businesses and individual consultants.
He introduced a five-day card for $69 that gives users a desk at any Regus shared-workspace location. Regus also introduced a plan for $25 a month that gives people access to any "business lounge," an open space with wireless access at a Regus business center. Before the recession Regus didn't offer anything comparable, and customers could use private rooms on an hourly basis or for $75 a day.
As the worldwide leader in Flexible Workplace / Executive Suite industry, Regus's initiatives have changed the industry requiring those who want to be competitive to change, too. Once of the biggest changes has been in the offering of virtual
offices. It has been a rob Peter to pay Paul scenario since many of the virtual office clients at one point would have had full time offices paying much more in rent. With the recession many factors changed and it appears that business is not going to go back to the way it was before the recession.