OfficeLinks Supports 21^st century working with innovative product launch, Co-Working Offices.  Available now, on-demand – AND FREE on Fridays!  Each week, we’ll have 10 desks available on a first come first serve basis. So, give us a call to make a reservation 646-512-5700.

There are a few major trends going on right now that are impacting where and when people work and how they utilize their office space.  First, companies are seeking ways to cut costs.  In doing so, it’s critically important that they identify ways to ensure productivity and image remains in tact.  Second, the workforce is becoming more distributed.  This powerful segment needs to be supported whenever and wherever their work gets done.  The local coffee shop, hotel lobby, home office or camping out a client’s space isn’t cutting it.

OfficeLinks not only understands, we also have a solution – CoWorking offices.  This product enables companies to slash office space fees while maintaining a professional front face.  The product supports workers with a workplace environment, enterprise-grade technology infrastructure and business support staff that stimulates the mind and inspires great work.

OfficeLinks is launching CoWorking at our Willis Tower (Chicago )and 40 Wall Street locations.  Clients will enter into the best buildings in the city, take the elevator up to the 84th and 28th floors respectively, be greeted by a welcoming receptionist and guided into their own Co-Working office.  The office is open plan and encourages interaction while privacy is ensured through locked desks and secure phones.  Clients will have access to the OfficeLinks Java Lounge where they can enjoy freshly brewed gourmet coffee, Tazo teas, filtered water and connectivity via iMacs.  In addition, they may also access boardroom style meeting rooms and videoconference studios on a pay–for-use basis.  

As an OfficeLinks team member, I have always been impressed with our company’s foresight and leading-edge products and services.  However, our latest offering takes the cake.  In fact, we’re launching Co-Working at OfficeLinks New York and Chicago with a FREE test drive.  Anyone interested in test-driving our new product may try it for FREE on Fridays starting August 28, 2009. Each week, we’ll have 10 desks available on a first come first serve basis. So, give us a call to make a reservation 646-512-5700.

We’re launching this product due to strong customer demand.  I’m thrilled that we’re the first in our industry to respond to the demand and to deliver an office product that really makes sense in today’s business climate. Just think—your isolated home office… a coffee shop… a hotel lobby… or a premiere office location featuring brilliant views, modern workstations, high-speed WiFi, free refreshments, and other business people.  Sounds to me like a no brainer!

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.