Office Boulevard

How Much Should I Pay for an Executive Suite?

In real estate on June 30, 2010 at 8:44 pm

I come across people everyday who are looking for office space and they want to know how much it would cost to get into executive suites. There are different factors in determining a price for a particular executive suite and I will get into that. But the common misconception is that people expect to pay what they normally pay for traditional office space, and that is just an unfair comparison. The truth is, executive suites range from $3-$10 per sqft, and when I mention that, the calculators in their brain start working overtime, and the result is: I can’t afford that! I need, they would say, 1000 sqft. So you are telling me that it would cost me at least $3000/month for an executive suite? Well, yes, if you need that much space. Executive suites have common areas that are shared by all tenants: conference rooms, reception area, kitchen, restrooms, etc…these common areas are not charged to you directly. It is built into your monthly fee. In a traditional office space, these common areas account for more than 70% of your office. So in reality, you are really paying for about 300 sqft of office space, and at $3/sqft, your monthly cost is $900…much more manageable.

Let’s first talk about the advantages of executive suites over traditional office space. I will just put them down as bullet points so I don’t get into a lengthy discussion and get off topic. If you have any questions, just contact me directly.

  • Very flexible lease terms, month-to-month leases up to one year or longer.  Traditional office requires 3-5 year commitment
  • No HUGE capital outlay to get into an executive suite versus a traditional office space
  • Pay for only the number of offices that your company needs.  If you grow, you can always add more offices when you are ready without affecting the terms of your lease.
  • All NNN costs are included.  This include utilities, CAM or Common Area Maintenance charge, janitorial and taxes.
  • Plug and play, you can move into your office the next day.  Phone and internet are in placed and ready to go.
  • Corporate feel, your clients will feel that you are in the corporate environment and may feel better about working with you.
  • Receptionist meet and greet and telephone answering.  How much would you have to pay to hire your own receptionist?  Think about this one…it’s priceless
  • One price covers all.  Know exactly how much is going out every month.

Disadvantages

  • Higher cost per sqft.  Not bad considering what I included above.
  • Proprietary phone and internet.  You cannot bring in your own system, and you pay for long distance phone usage at list price.

These are factors that will drive a price on executive suites.  Again, in bullet points

  • location, location, location.
  • window office or interior, expect to pay $100 or more for a window office of the same size vs. interior office
  • Class A or Class B
  • Availabilities at that center
  • Square footage, there is a big difference between a 150sqft office and 175sqft office
  • manager’s discretion

That last bullet point is very important, in my opinion, because a manager has to do what is best for his/her center to be profitable, so they will give the best deals to online brokers who have good relationships with them and continually send them quality clients.  Having said that, I’m going to copy and paste my last point to clarify why you need me 🙂

Work with a local, respected online broker who knows the managers and can get you better deals. These brokers are different from the traditional real estate brokers because all they focus on are executive suites. Not all online brokers are created equal. Look for one who is in the same market as you, and seems to know the managers and availabilities and specials. These are the ones who can pick up the phone to their favorite managers and get you extraordinary deals that you can’t get yourself. Their services are free to you, and in most cases, you will get a better deal. The important thing is to contact the broker BEFORE you contact any executive suites managers. This enables the broker to represent you on your behalf.

Written by JC Nguyen. If you have any questions, please contact JC at 949-800-5507. JC is a well-respected online broker for the Orange County/LA Executive/Dallas Executive Suites. His email is jcnguyen@officeblvd.com and his web site is http://www.officeblvd.com.

 

JC also works with all executive suites nationwide. The nationwide and worldwide link ishttp://www.ineedoffice.com

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