“At first look, serviced offices seem very expensive,” said Peter. “When you divide the square footage of the offices you are renting by the monthly invoice, you get sticker shock. With OfficeNetwork as our serviced office consultant, we began to do more apples-to-apples comparisons of our traditional office space versus the serviced office solution. We soon realized that we had a lot of cost savings and cost avoidance opportunities.”

OfficeNetwork worked with Peter and his team to develop a strategic plan for moving offices into serviced office locations. In late 2008, PTC took half of a business center in Farnborough (UK) instead of doing a build-out in traditional space, resulting in significant cost savings.

“The deal that OfficeNetwork helped us negotiate in Farnborough was the largest deal we’ve done in a serviced office,” said Peter. “We moved around 50 people into a business center that gave us half of the floor, including our own reception area, kitchen and conference rooms. In addition, they allowed us to provision our own phone system, IT solution and build a dedicated communications room. When our clients come to the building, they see PTC on the door to our area. The only way you would know we did a deal with a serviced office operator is if you looked at our master agreement.”

Peter even took the deal he got with the provider to the landlord of the project to see if he could get a better deal. “He couldn’t touch the deal we negotiated with the serviced office provider,” said Peter. “Neither in price nor in length of contract.”

PTC has moved over 25 global locations from traditional leases to serviced office providers, ranging in size from one person to 50. When identity is an issue for the local team, PTC adds an additional office that is converted into a dedicated conference room.

“Sales haven’t slipped as a result of moving to serviced offices from a traditional lease,” said Peter. By working with OfficeNetwork to employ a strategic utilization of serviced offices across the globe, Peter used cost avoidance and savings to achieve the goal of trimming $4 million from the budget, a savings that he continues to grow.

Results: We negotiated a five-year lease with a three-year termination option. The client paid no up-front CapEx—just a two-month deposit plus quarterly rent payments—and saved $130,000 over the lease terms (compared to the next-best alternative.)

The surrounding area is bustling with development and amenities including the Mahim Nature Park. The Mumbai Metropolitan Region Development Authority (MMRDA) is committed to the highest international standards and amenities while creating a vibrant community and family-oriented atmosphere.

This statistic is coupled with  projections that demand will reach 3 million sq. ft in HK’s central business district while supply will be limited to just 1 million sq ft.

In this explosive and low-vacancy market, OfficeNetwork can leverage it’s experience and connections to secure your optimal workspace solution.

Link to WSJ Article

Results: The space was delivered move-in ready within 90 days. Over the three-year term, the client saved $29,000 (23 percent) compared to what the company would have spent to handle the investment by itself—and it avoided the $126,000 capital investment.

Results: Project was completed on-time and on budget, and client saved $60,000 compared to next-best alternative.

Contact us a line to discuss how we can help you structure and plan your office needs to minimize financial impact.

“Flex time” refers to practice of designing a flexible work schedule for employees that breaks the mold of the traditional 9-5 workday.

Some of the main reasons for this work place renaissance include; emerging technologies; advancements in telecommuting; employee morale; and reduced overhead.

In an age of globalization, internet ubiquity and an increasing focus on customization; many employees are finding new efficiencies in a bespoke work schedule.

What do you think?

Here are some links for further reading:

Instittute for Corporate Productivity

Discovery News

Pros and Cons of Flextime on Brighthub