Mount Laurel, NJ - Despite the current global economic crisis, Office Business Center Association International (OBCAI) reports an increased demand for Executive Suite office space throughout North America from companies seeking reduced financial risk and more flexible lease terms.
OBCAI, a member owned nonprofit trade association serving the Office Business Center industry, recently concluded its annual Dream it Do it conference in Florida early October. One of the major topics of discussion was the impact of the economic downturn on the office leasing industry. It was widely agreed upon that the current state of the economy has lead to dramatic increases in the demand for executive suite leases due to the growing trend of wide scale downsizing by corporations.
“Many of our members are reporting significant increases in the number of inquiries from new clients, upwards of 20% in most markets. That’s extremely encouraging. It means companies see the value that an Executive Suite lease brings to the table.” Said Carrie Gates, Vice President-Leasing for Barrister Executive Suites, Inc. and 2009 President for OBCAI. “Companies today are under more pressure than ever to cut their over head expenses and increase their ROI. Leasing from an Office Business Center is a great way to reduce their financial liability and increase worker productivity. Who wouldn’t want that in today’s economy?” added Gates.
Companies have nixed long term office space leases for 4- to 20-person groups if favor of signing shorter 6- to 12-month agreements with flexible executive suite providers. “This year has been huge for all of our markets,” said Thad Pittman, Co-Founder and Principal of Corporate Office Centers and OBCAI Board Member. “It’s crucial for these businesses to have flexible options when it comes to office space, especially during economic uncertainty. This is where OBC providers have been so vital because we can provide the flexible, short term, plug & play option they so desperately need. We have seen increases in office leases across the board because of this emerging trend.”
In addition to lease flexibility, most business centers come equipped with commonly used services included with the rent, providing much greater value over traditional office leases. Typical services found in an OBC include telephone answering, reception service/administrative support, conference rooms and meeting space, telecommunications service (voice & high speed internet access) as well as access to commonly used office equipment such as photocopiers and facsimile machines. “An OBC allows the consumer to increase their ROI and operate more productively. By having their basic business needs taken care of, workers have more time to focus on their core business.” said Pittman.
In order to keep up with the growing demand for OBC space, new inventory is continually being added to the market. “Our members are adding locations around the country in order to keep up with the increased demand. New York and Chicago seems to be the fastest growing markets.” Said Gates. “Over 228,000 sq/ft of new inventory has been added in those two cities alone this quarter.”
There are more than 8,000 Office Business Centers world wide, 4000 of which are in North America. Many of these are members of OBCAI. For information on how business’s can profit from an executive suite lease, or more information on member locations please contact (800) 237-4741 or visit www.obcai.org
Office Business Center Association International is a member owned non-profit trade association representing the executive suite industry. OBCAI is the primary valued resource for industry knowledge and professional development of its members. For information on OBCAI or its member locations please visit www.obcai.org or contact (856) 439-1076.