How to pick a shared office facility

Real Estate Weekly, June 3, 1998

So, how does a business owner, home office facilities manager or local sales rep decide which of these locations is the right one? Here are some tips:

Pricing and Variety of Services: For most facilities, the basic rate includes only a work space receptionist and phone line. Amenities such as voice mail, secretarial support, mailing services, copies, faxes, conference facilities, parking and furniture are additional. "Choose a facility that offers you the full array of service you need to run your business," advises Erik Emanuele, general manager of Columbus Corporate Center, a shared office environment at 10 Columbus Blvd. in Hartford, CT which can house 30 businesses. This facility offers tenants everything from complete furnished office suites to individual private work stations to just the use of the address and facilities as needed.

Additional services include computer rentals, voice mail, pagers, mobile phones, office supplies, conference rooms and fully catered meetings, and even on-site travel planning. "Since such support services are all a la carte, make sure the cost is competitive and not excessively marked up," Emanuele said. "We've heard of other executive suites where they mark up postage by 50 percent. Before you decide, ask for rates and compare the costs for the services you will use most often."

Location: Look for convenience and accessibility when picking among the variety of alternatives. "Since you will be using this as your home base, make sure it's near your customers and the roads you need to reach them," says Marty Schwager, the manager of 10 Columbus Blvd., the building in which Columbus Corporate Center is located. "Our shared office clients tell us that this building's access to the state's major east/west and north/south highways was the reason they moved in."

He also reminds business people to pick a shared environment that's close to where they do business. "Many of the clients at Columbus Corporate Center are lawyers, so the five minute walk to the courthouse and state office buildings is something they appreciate," says Schwager. "Also, tenants who came from corporations downtown got used to being near to shops, restaurants and entertainment, as well as the Central Business District. They expect that to be a part of their working environment, even when they go into their own businesses. For that reason, they would pick a building like ours when they go out on their own."

Parking: Veterans of large corporations take their on-site parking for granted, especially in suburban locations, but it becomes an issue for small business owners and sales people. "You must have on-site, secure parking available during business and off-business hours," says Schwager. "Think of how much time you spend walking to and from an off-site lot during business hours, and when you're on your own, that downtime represents real money."

And, since many entrepreneurs work beyond normal business hours, safe and accessible parking also becomes an important issue. "Look for a building with 24 hour access that has full-time monitored security in the parking garage, secured admittance and an elevator that goes directly to the lobby," he advises. "And give priority to one that offers an escort service to your car after hours."

He also points out that parking for clients and vendors is a part of maintaining a professional image, "The quickest way to look like a 'one-man-band' is to tell clients they are on their own when it comes to parking while visiting your office," he says. "Choose an executive suite that assures you that your guests will have access to on-site, validated parking."

Support Staff: When evaluating whether an executive suite is right for you, pay careful attention to the staff. "These people will greet your guests, type your letters and be the first people you see when you arrive in the morning," says Emanuele. "They may not work for you, but they set the tone for your business. Make sure they are managed by a full-time, on-site manager; that they are professionally trained; and that they present themselves the way you want your business represented. Ask about their experience, background and capabilities."

Furnishings and Equipment: Find out whether the office space comes furnished. Some shared facilities either do not furnish or charge you a monthly fee to use their furniture. Also, make sure the furnishings in both the office and common areas reflect the image you prefer for your business. Remember, your guests will be taking in the environment as part of their evaluation of your professionalism.

Make sure you can rent state-of-the-art computers if you need them, and that fax machines and copiers are up to your needs. Look for facilities that also offer advanced equipment such as voice mail, mobile phones and paging services, so all you need to do business is available. You may not need them all, but it's best to have them when needed.

Growth Potential: Finally, pick a facility with growth potential. "As your business succeeds, chances are you'll need staff, and they require space," points out Schwager. "Pick a facility with a number of options. Tenants in Columbus Corporate Center can start out in a cubicle, move up to an office, then expand to a suite. Our tenants have an added advantage. Because the shared facility is owned by the building, they can expand into their own offices without changing their address. Literally, people can grow from 50 square feet to 15,000 square feet and not leave the building. Several clients have done that. One started in our shared facility and now has their own 2,500 square-foot spaces.