In order to retain their loyal guests, it should come as no surprise hotels are proactively wooing road warriors with workspace improvements in their hotel rooms. The New York Times recently reported, “Hotels are focusing on several elements in helping travelers work in their rooms more effectively.” Traveling for work is no longer an excuse for not being “connected” to the office. Technology has enabled business travelers to get work done regardless of their location.

Enhancements being made by chains such as Marriott International and Kimpton Hotels reinforce the fact that a well-designed workspace – from proper furniture to lighting — does have a positive impact on the performance of business professionals. As a Hilton Hotel executive stated, “The biggest thing that the guest wanted was to have everything ready for them to put down their laptop, plug in and be instantly productive.”

It is clear the expectations of the 21^st Century business professionals are redefining workplace requirements – both in the office and on the road. Let us know how if you have experienced any changes in your hotel room during your last business trip.

The Wall Street Journal

According to commercial real estate brokerage firm, Studley, in the 12 months that ended June 30, office tenants secured 161.3 million square feet in leases nationwide. These figures are up 5.7% over the 12-month period ended in March.  That’s good news; but there’s a catch.

Companies are doing deals but are shoehorning workers into less space.  Businesses are asking their architects to get creative with open floor-plans in lieu of enclosed offices.  The ultimate goal is to reduce the amount of space per employee so a company can save on real estate costs.

Obviously, this is one way of controlling property expenses, but one could argue, is a short sighted approach.   

Although there are a number of alternative solutions to traditional office space, it’s shocking that many businesses continue to revert back to long-term lease agreements – which limit flexibility, are costly to fit-out and may not meet their needs down the road.  

With the amount of uncertainty circulating today, a business would be wise to mitigate their real estate risks by following a flexible workplace model that will allow them to expand (or contract) as business demands dictate.  That way when businesses are ready to enter new markets or add employees they will have the ability to do so quickly and efficiently.

Thriving at OfficeLinks New York Officespace

The lesson from what’s happening in the restaurant world is one that can be applied to many businesses.  In order to navigate the difficult economy, companies must be humble and adjust to the times.  This was one of many important pieces of advice I received from Roddy Salazar of Interfax during a recent interview.  Interfax provides essential news and other information products, focusing mainly on Russia, countries of the former Soviet Union, China, and Central Europe, for decision-makers in politics and business.  Roddy opened his company’s first New York City office at OfficeLinks’ 40 Wall Street location in July 2007.  With a nimble business plan, Interfax is prevailing despite the obstacles.  Roddy, like many NYC restaurant owners, knows that client retention is key.  Here are some of Roddy’s pointers for client retention:

*Lose the arrogance.  Be humble.

*Move with the environment. Ensure your strategy is agile and adept to the current marketplace at all times.  

*Engage your clients.  Roddy shared with me that he pre empts the “we’re canceling our account” discussion by providing his clients with a powerful value-add.  Further, he went to each of his clients and assured them that there would not be an increase in the cost of their subscriptions.

*Provide a superior value proposition. People are extremely selective with their money.  Therefore, businesses must provide a superior value proposition (remember value proposition=benefits/cost) in order to have the edge over their competition.  Per Se recognized that the recession wasn’t going to stop people from eating but they needed to enhance their value proposition to beat out the competition at their particular price point.  Roddy knows the need for information is just as crucial as ever.  His challenge, and it appears that he has stepped up to the plate, is to create a powerful set of benefits that outweigh the cost.

With client retention in the front of their minds, Interfax is positioned to grow and capture opportunity.  My guess is that its competitors who struggle the most will be the ones who remain too rigid in their approach.  Right now, Roddy’s tips are extremely timely.  In fact, the interview made me think about what my own company, OfficeLinks, is doing lately to adjust to the current marketplace.  Similar to Interfax, we are focused on client retention.  OfficeLinks is continually inventing creative ways to improve our value proposition.  A good example is the recent launch of our CoWorking program, which enables mobile workers to take advantage of our state-of-the-art work environment.

OfficeLinks Wall Street NYC Client that is Unlocking the Keys to Success

How can a company improve the lives of many Americans while at the same time developing a profitable business during a difficult economic climate?  The answer to this question is certainly not an obvious one. However, after sitting down for an interview with Oryan’s Group, a company dedicated to helping create better business through innovation, automation, organizational alignment, optimal management structure, and solid business strategy, it was clear to me that this company has a strong answer.  Dr. Oryan Yitzhak, President and CEO, of Oryan’s Group, first brought his company to OfficeLinks’ 40 Wall Street location in December of 2008 with a vision to identify opportunity in the turbulent American marketplace.  After considerable due diligence and careful consideration he found his niche. Leveraging his experience in real estate and investment banking and insights into the American marketplace, Dr. Oryan Yitzhak purchases properties for renovation and rents them out at discounted rates.  In the short term Oryan’s Group improves residential areas as well as the lives of the Americans who occupy his properties and in the long term, he is building a profitable business as his aim is to sell these properties at real value once the market picks up.  Having learned about the great work of this company, I am especially pleased to observe it is thriving despite the current recession. Oryan’s Group recently took on more office space at 40 Wall Street and we at OfficeLinks are honored to provide a nimble workplace platform that could accommodate their expansion.

Selecting the right Office Space in New York City, Chicago, or realistically anywhere, involves significant due diligence.  Since office related expenses are commonly the second largest cost to hit the bottom line, examine the complete spectrum of workplace options to ensure that you select the solution that is optimal for your business now and for tomorrow.

There are really four options to consider:  Traditional space, sublet space, business centers and home working.  In future blog posts, we will dissect each option in greater detail.  But, for now we will look at some core elements of the decision-making process.

Total Occupancy Cost:

When examining price, ensure you are including all the factors of this very complex equation. To be very clear, square foot pricing is not Total Cost of Occupancy.  Price per square foot is simply one factor.  At a very high level, consider all the costs for fitting out your office so that it is “business-ready” (don’t forget about the common areas including reception, meeting rooms etc…) and then running and managing that facility.  Then factor in that cost when the space is totally utilized and when it’s not. For expediency sake we’re proving a very high-level overview. In an upcoming blog post, we will address the true definition of Total Occupancy Costs. 

Other factors in your decision-making process should be:

Term of the agreement. In today’s dynamic marketplace your business needs to be agile.  Long-term, fixed leases do not enable business agility. There is a clear disconnect between what landlords and business owners need. Business Week quoted a stat that 50% of a typical company’s office space sits empty.  You can mitigate this risk with agreements that have flexible terms and allow you to expand and contract your office space according to business needs, which leads to the next thing to consider.

Rent increases.  Even with long-term leases, rent tends to increase.  So when you find an option with a shorter, less risky term, you want to cover yourself from potential rent hikes.  Ask for a clause that correlates rent increases to the Consumer Price Index (CPI).  With today’s marketplace, you can request a shorter term and ask for a rent freeze for the first year. Watch out for increases tied to “fair market valuations” and stick to CPI.

Building maintenance and utilities.  With every office comes office related bills – as the cost to actually run the business.  Remember to ask for a definitive list of what’s included and what additional charges you would have each month. If the services and utilities are all charged separately, you may see that your low rent price per square foot option is no longer a wise choice, which leads me to the next point.

Complete office and support package. You know how to run your business and each minute you are distracted from it negatively impacts your output.   To ensure you are optimizing each hour, select options where your office management is included in your monthly price.  Business Centers offer options for a receptionist to answer calls, to give a warm welcome to greet visitors and can even help arrange meetings as needed.  To many, these services immediately equate to savings in headcount or from utilizing that staff for business driving efforts.   Using shared business equipment cuts overhead and utilities are generally included in your monthly cost.  For many, the networking in such a shared business environment has lead to new revenue gains.  Finally, a long-term lease agreement that doesn’t support your dynamic business needs could prove devastating to your business.

Risk:

For most, running a real estate function is not a core competency.  Identifying the space where you want to office is one thing.  Forecasting the right amount of space so that you can optimize utilization, negotiating a 50+ page lease agreement, establishing a business-ready environment is another.  Making the wrong office decision can really be a noose around the neck of a business for years to come.  Consider all options that mitigate that risk.   

Clients who OfficeLinks at Bryant Park have found their place to THRIVE.   It’s truly a different world out there from an office standpoint. The old logic of real estate is dead and gone.  Clients that OfficeLinks choose the program that is right for their unique business needs.   Consider then when securing your office.  Terms are flexible – ensuring the right amount of space and term.  Productivity is assured from day one – offices are fully furnished and equipped with leading-edge connectivity, telephone lines and equipment and a support staff that is available on-demand.  Cash is protected – there is no upfront capital expenditure and companies that OfficeLinks save up to 60% on their facilities costs.  Meeting rooms by the hour, videoconference capabilities Virtual and day office packages are also available.    Find your space to thrive at Bryant Park.

What these businesses also benefit from is the location, a prime business address AND quite a buzzing Bryant Park with a full calendar of events.  And to make it even better, the events are free!  So, mark your calendars and head over to Bryant Park for: 

Bryant Park Yoga – Tuesdays 10:00 am – Stretch and relax amidst the NYC hustle and bustle

Meet the Birds Bryant Park Tour – Tuesdays 11:30 am - Get up close and personal with these NYC feathered friends

Tai Chi at Bryant Park – Tuesdays and Thursdays 7:30am – Start off your day in a balance between your body and mind

Bryant Park After Work – Tuesdays and Wednesdays 6:00pm – Follow the sound of the music and kick back after a day at work.

HBO Bryant Park Summer Film Festival – Mondays 5:00pm – Enjoy a full array of films shown under the stars on the Great Lawn.

Piano in Bryant Park Series – Most weekdays at 12:00pm - Enjoy listening to some of the best New York pianists as they tickle the ivory

 For full details and see the entire Bryant Park Events Calendar.

Not from the Bryant Park Area and just passing through?  If you need a day office or meeting room near Bryant Park – Call  877 265 4657 or contact OfficeLinks NYC Office Space anytime.