Executive suite

For other uses, see Executive suite (disambiguation).

An executive suite is a set of individual offices sublet from a larger suite of offices. The executive suite proprietor rents entire floors (or buildings) and leases the smaller office spaces or workstations to businesses that don't need, or can't afford, large space.^[1] Some executive suite landlords offer additional services.^[2] This variation on the traditional office idea has become an industry with roots in the early ‘90s (see History). There is no universal agreement on terminology as executive suites go by many different names, such as: open plan office, serviced office, office business center, office suite, business center, executive office, furnished office, flexible office, managed office, shared-office space and office hoteling. Office suite, as software, stands as testament to the confusion in the terminology. It is not uncommon for a traditional tenant to sublet unutilized space and to characterize it as an “executive suite.”^[3]

A flexsuite is a multi-office suite with many of the same amenities included in an executive suite. In the event of company growth, a business may choose to upgrade from executive space to a flexsuite.

Executive Suite Terms

Some executive offices do not offer as much flexibility in their terms as others. Many business' considering executive suites are small entrepreneur start-up companies that could experience growth before a term's end-date. ^[4]. Considering this, flexible terms may be necessary in the event of unforeseen growth to accommodate the essential success of one's business.

Amenities

A major advantage executive space has over typical commercial space are the additional services. If considering an executive suite, it is important to ask about these additional services and any incurred costs they would result in. Examples of offered amenities may include the following:

• Breakroom
• Conference room access
• Video conference room equipment
• Training rooms
• Fax/Copies/Scan to email access
• Kitchen
• Cyber cafe
• Lounge area
• Covered parking
• Cleaning/Maintenance
• FedEx/UPS daily pick-services
• In-house postage meter services
• Daily USPS drop-off
• Day offices (temporary work-space for short term use)
• Client Service time (gives the opportunity for tenants to temporarily "hire" executive office staff to assist with projects/assignments)
• On-site fitness center
• On-site spa facility
• Landscapaing
• Custom company signage
• Notary services

History

In 1983 James Blain a Michigan based architect saw an increased need for single story office space, that specialized in small office user who seek convenience with flexible lease terms and minimal overhead expense. In 1985 James opened his first AmeriCenters in Troy, Michigan that specializes in providing clients with a convenient, full-service, professional office environment so that they can stay focused on their core business. The company has grown to 9 locations located in Michigan, Indiana, Illinois and Ohio.^[5] With increasing urbanization, travel, hotels, and office costs, the idea of an executive suite occurred to Mark Dixon in 1989 on a trip to Belgium.^[6] His company evolved into Regus, a publicly traded and successful operator of individual office suites internationally. The company became overextended and went bankrupt in 2003.^[7]

Also in 1989, Ralph Gregory incorporated “The Virtual Office”. He became a first-time father that year and wanted to be at home with his daughter, but also wanted to keep his business professionalism high.^[8] He later changed the company to Intelligent Office and in 1994 ^[9] he opened a location in Boulder, Colorado. Gregory evolved the executive suite idea into the concept now known as the “virtual office”. Despite the setbacks of 2001-04, the executive suite industry managed to survive and grow with the increasing demand for office space, but current economic conditions are again proving to be a challenge.^[10] In the current economy, landlords are using the executive suite model as a device to harbor their own space until a large renter comes along.^[11]

Executive suites as hotel alternative

Various companies in the Corporate Housing industry also use the term "executive suite" to describe fully furnished executive style apartments. Premiere Executive Suites is the leading Canadian firm following this practice.

References

1. ^ "Executive Suite." MSN Encarta. 2009. Archived 2009-10-31.
2. ^ "Executive Suites." Entrepreneur.com. 2009.
3. ^ Tarquino, J. Alex. "Manhattan is Awash in Sublet Office Space." New York Times. May 26, 2009.
4. ^ Landers, Jeff. "What You Need to Know About Executive Suties." "INC". July 2006.
5. ^ www.americenters.com
6. ^ "Regus Group PLC. Europe Intelligence Wire. August 16, 2006.
7. ^ "Regus Files for Bankruptcy Protection". BBC News. January 15, 2003.
8. ^ Taylor, Mike. "Offices A La Carte." Colorado Biz Magazine. August 26, 2005.
9. ^ "The Intelligent Office System, LLC." Freefranchisedocs.com.
10. ^ Kirchhoff, Sue. "Economic Downturn Pounds Commercial Real Estate Market." USA Today. January 11, 2009.
11. ^ Howe, Aleshia. "West 7th Aims for Small Businesses." Fort Worth Business Press. June 1, 2009