By Deanna Mitchell
PS Executive Centers, Inc.
During the past few years many corporations utilized the executive suite environment for their field or regional personnel. After factoring in the additional cost of a receptionist, administrative assistants, telephone systems, internet access, and furniture/equipment, they discovered that the monthly cost of traditional office space was substantially higher.
In an executive suite these necessities are shared with other clients. Another major consideration is flexibility. An executive suite offers shorter term lease agreements and you are only charged for the services used. In addition, most executive suite clients agree that there is much to be said for going to work at a place where there are other like-minded individuals. Not only are executive suites the cost effective solution for corporations, but also for the entrepreneur.
Gary Tofil, Registered Principal/Owner, LPL Financial, has utilized an executive suite for 11 years. He comments “the most important conditions necessary for operating my independent securities practice are, professional image, technology, administrative services, and affordability.” He refers to the environment as “business in a box”, and appreciates the ala-carte basis. Gary remarks, “another bonus is having quality, live staff for my clients” which eliminates the headache and cost of having to manage staff and “payroll nightmares”. He closes with “the securities industry is regulated beyond redundancy, is fast moving, financially unforgiving, precise and multi-faceted, yet I can operate in my professional suites atmosphere legally, due to technology and the flexibility of my all inclusive suite/business box.”
Brett Ramsey, Owner, Novus Financial, stresses that an executive suite environment can be a valuable financial benefit to a business professional in the startup mode. He comments “it allows you to grow while in the ramp up mode.” He continues with, “flexibility is a key factor; the startup costs of critical operating expenses (phone systems, internet, operations and staffing) are eliminated. There is no need to hire that support person for more hours that what you will actually use their services for.”
Brett does still retain staff for particular functions, and commented “having the executive suite has allowed them the flexibility to perform their primary responsibilities and not be distracted with miscellaneous office support.” He states, “he recognized a 20% reduction in operating expenses during his first year in an executive suite.” Having experience working from a home office, Brett comments, “it not only provides a private office atmosphere, it also allows you to connect with a community of professionals, sharing knowledge and experience.”
In comparing traditional office space to an executive suite you need to consider the cost of operating expenses, utilities, taxes and customizing the space to meet your requirements. Beware of the difference between ‘rentable’ and ‘usable’ rates. Many times the usable area is multiplied by a building factor to take in account elevator shafts, common hallways, restrooms, etc. Please refer to the BOTTOM LINE comparison example on this page.
I highly recommend visiting and taking a tour of an executive suite facility. My experience is that it helps to build a comfort level not only with the physical environment but also with the staff and services.
