Should you lease at an Executive Suite or Business Center?

Executive Suites, also called Business Centers fill a void in the office space market for small companies or individuals needing to lease a real office, however do not have the capital to fund a receptionist or to purchase furniture, phones, etc.  We will discuss a few pros and cons of this office rental arrangement.

In most Executive Suite arrangements, they usually provide all of the following:

• Office space
• Furniture (desk, chairs, filing cabinet and extra tables)
• Phone System
• Internet Service
• All utilities
• Receptionist and voicemail
• Shared use of restrooms, kitchen, meeting rooms and lobby areas
• Parking facilities

Pros:

• Very low set up cost (No capital cost for phones, furniture and receptionist)
• Immediate availability and move-in
• Short leases allow for growth
• Most cities have many options from which to choose

Cons:

• Can be very expensive – $30 to $50 PSF/year
• Extra fees are accessed at some office suites for conference room use and parking
• Lease contracts may have requirements for keeping a virtual office mail account in order for the Suites to forward your mail and/or calls if you move.  Costly transition.
• You may lose your phone number when you move
• Lease contracts may also have onerous notification requirement s for non-renewal

Having used an executive suite myself I can say it is very convenient and for a one or two person operation it can make a lot of sense.  Once a company’s office square footage requirements go beyond 3-4 people, it probably makes sense to secure typical office space and hire a receptionist.

If you are needing to lease office space and would like a comparison of options for rent, please call us at 713.461.4750.

Eric Hughes – EricHughes@CentermarkRealEstate.com

Centermark Commercial Real Estate – Houston