Executive Suite Office Space: Question & Answer

What is Executive Suite Office Space?
Executive suite office space, is office space for leaseon-demand. The typical Executive Suite Office Center is a floor or two in a commercial building, divided into individual offices, workstations, small corporate suites, conference rooms, reception area and other common areas. The facility is staffed, equipped, furnished and managed like a corporate headquarters. Businesses, not-for-profits, government organizations and other clients pay a monthly fee which covers the use of office accommodations and such essential services as telephone answering, reception, and facilities management. Other services, e.g. faxing, copying, word-processing, high speed Internet, are typically available a la carte and are billed separately and only as used. Virtual office space packages are also available for individuals and companies not needing full time office space.

Executive Suite office space generally includes four elements: office accommodations, business services, amenities and managed technology. They are known as “serviced offices” in Europe. The terms “business center” and “executive suite” are also used.

What is the cost?
The cost of a single office in an Executive Suite Center varies depending on the market, the location of the facility within a market, the size of the office, and its location within the facility. In some markets a small, interior office might be as little as $500, a large, exterior office with excellent views might be $2,500 or more per month. Typically, this fee includes space-related services such as maintenance, cleaning and utilities, as well as such basic professional services as office management, telephone answering, mail handling and reception.

How long a commitment is required?
Individual firms set their own requirements. Unlike traditional real estate, the terms are very flexible and can range from month to month to multiple years. This flexibility allows a company to match their workplace needs to their business needs. Virtual office space plans are typically month to month.

Who uses executive Suite office space?
Executive Suite Centers are used by any business that wishes to enter a market immediately without making a commitment to a long term lease, investment in equipment, staff or other capital expenditures.

Ready-to-use Executive Suite Centers are often used by entrepreneurs, professionals, small businesses and startups. Larger companies also use the facilities, often in multiple locations, to set up a cost-effective and immediate network of sales and branch offices. Businesses also turn to executive suite office space when they need additional professional office space for special projects. They are also used by government agencies and retired individuals.

Given the fast-paced, global business climate, Executive Suite Centers are a perfect way to efficiently and cost effectively enter, test and develop new markets. They enable companies to stay competitive and position employees in strategic locations around the world.

Executive Suite Centers provide businesses with a simple integrated real estate solution combining a company’s three largest expense items: people, property and technology.

For most companies, Executive Suite Centers are a viable economical solution in situations requiring 5,000 square feet or less.

Do Office Business Centers offer other services?
Most Executive Suite Centers offer virtual office plans as well whereby client may lease an office room, meeting room or workstation when needed as well as utilize the receptionist services for incoming calls. Virtual office plans typically provide an address, telephone answering, mail handling and a specified number of hours of conference room or office use per month. Virtual office plans are usually tailored to the needs of individual businesses and costs vary accordingly.

Virtual office plans are often used by home-based businesses that want a professional image as well as an office to meet clients.

Also, Executive Suite Centers typically provide offices or conference rooms by the hour. Since locations are often conveniently located in major business destinations around the world, many find this service an ideal alternative to meeting in airports and hotel rooms.

How large is the industry?
There are an estimated 4,000 Executive Suite Centers in North America, 5,500 worldwide. Estimated revenues are between $2.5 and $3 billion.

What is the current state of the industry?
The growing demand for Executive Suite Centers has resulted in restructuring and consolidation as major REITs and others have invested hundreds of millions of dollars in the industry and have announced ambitious expansion plans. However, their expansion will not by itself satisfy increased demand especially since that demand will be further stimulated by the energetic marketing initiatives these companies are sponsoring.

As a result, there will continue to be opportunities for local, regional, and national entrepreneurs to enter the industry or expand their current businesses.