With the downturn in the economy, many businesses are looking at executive office space as an alternative to purchasing office space to cut costs and reduce financial liability. This article takes a quick look at the pros and cons of renting executive suites.
The professionals:
- Rent and get to work: flexibility is the key word when it comes to executive suites. Sign a lease and you can literally be running your business the next day. There is typically no “build” phase as offices have already been built and unless you require special configurations, your space is ready to go.
- Professional Receptionist – No need to rush time or money by hiring someone to answer the phone, sign for deliveries, put out the mail, bring coffee to the client meeting, etc.
- Instant Communication – Phones, the Internet, and in some cases, video conferencing are all available at the flick of a switch.
- Fully furnished office or pick and choose – here is a big plus as there is no need to buy furniture or move it as the facility will take care of it for you.
- Conference and meeting rooms: Nothing is easier than reserving a conference room for your next big meeting. You can also find services such as coffee service and full catering.
- Like-minded businesses stick together: Executive office space typically attracts small businesses, which usually means entrepreneurs and like-minded individuals.
- No long-term lease/purchase: Executive suite leases are typically 6 months to a year, unlike a mortgage on an office building.
- Expanding your business is easy: When your business grows beyond the limits that your office space can handle or if it is purchased, it is easy to move.
The cons:
- It’s Not Yours: Since it’s a lease, you don’t really own anything, so deciding to recarpete or repaint or find a new phone system isn’t your decision.
- You get what you get: the building owner chooses the furniture, internet provider, and phone service, so you take what they have.
- She’s not your receptionist, she’s everyone’s receptionist.
- Pay more: is the rent high? Maybe or maybe not depending on numerous factors.
- Don’t look too far down the road – long-term leases are generally not available
- You are at someone else’s mercy – If the bathroom is a mess; you are at the mercy of the owner to clean it up.
- You have to share: You are sharing conference room time, typically internet bandwidth, parking, restrooms, etc.
As you can see, I was able to find more pros than cons, and although this list is not definitive, it is a good indication of what the differences are between renting an executive office suite and buying office space.