Printer Friendly

Executive suites: valuable resource for owners.

Twelve years ago, the term "executive suite" conjured up images of a sparsely decorated office where small businesses could rent space and have access to a secretary. A lot has changed in the past decade, particularly in terms of today's executive suites. Today's business centers are located at the most prestigious locations and offer a full range of amenities and services to satisfy even the most demanding executives.

From handsomely decorated offices and conference facilities to state-of-the-art technology such as video teleconferencing; today's upscale business centers have become the, newest trend in building amenities. Even the most conservative developers are looking at executive suites in a new light. As building management struggles to secure tenants, building amenities are becoming a necessity to close the deal rather than an extra. Having a business center as a permanent feature in a building can be a real selling point, because the services offered by the suites can be accessed by all building tenants.

For example, who has not had the unfortunate experience of a double-booked conference room or a visiting executive or client with no space in which to work? Business Centers can provide office or conference accommodations at a moment's notice, as well as access to secretarial and business support services, including word processing and desk-top publishing. This provides building tenants with additional options to support their businesses. In addition, business centers offer a full range of services that can be accessed on an ongoing basis such as conference facilities, some with video teleconferencing, telemarketing programs and after hours answering services.

In addition to serving as an amenity to the building, business centers fill a variety of other roles for building management. Business centers serve as an excellent source of swing space while a tenant's space is being built out. In addition, having an executive suite in a building reduces the need for multiple tenant floors consisting of a large number of small space users, allowing the building management to focus on Securing and servicing larger tenants. A properly run executive suite will also serve as an excellent source for new building tenants as suite clients outgrow their small space and require larger space in the building.

Even the most conservative industry leaders are incorporating executive suites into their buildings. For example, Alliance Business Centers recently entered into a management agreement with The Stahl Organization to operate a 27,000-square-foot executive suite at the Chanin Building in Manhattan. A careful analysis of a study done by Alliance Business Centers resulted in interesting findings - with a well designed and operated business centers the right location, the building can generate more cash flow per square foot on the floor than with a traditional market lease. With flexible leases offered through a business center, the building can take advantage of increased rentals in the coming years.

These factors are making management agreements with experienced executive suite operators more common than ever before.

Management agreements offer building owners the cash flow of a well run executive suite without the hassles of day to day operation of the facility. The addition of a business center also shifts the responsibility of servicing the building's small space tenants to the operator, freeing the building to spend more time servicing larger tenants.

The most important step a building owner can take to maximize the cash flow of their business center lies in the selection of a qualified operator. Running a suite effectively on a day to day basis takes a experienced professional, as business centers are service intensive and require more attention than a standard red estate venture. Experienced operators can also provide valuable expertise in a feasibility analysis for the selection of location and the design of the, facilities to maximize their cash flow potential.

An evenly run executive suite can be a valuable source for new tenants, an amenity to the building, and a profit center for building management, making suites an outstanding addition to the right building. As more owners open business centers in their buildings and achieve successful results, executive suites will become a popular addition to buildings for the 90's and beyond.
COPYRIGHT 1992 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:property owners
Author:Beale, David
Publication:Real Estate Weekly
Date:Oct 28, 1992
Previous Article:Saving money on a building's legal services.
Next Article:Report: bottom to come in 1993.

Related Articles
Tech conference addresses changing business tactics.
Brokerage firms relevant, even in this kind of market.
National Water & Power Offers Iris[TM].
IREM to host Energy Day Oct. 10.
Amwell Commons' 'executive suites' drawing interest.
Expanding joint venture development business.
Inside REBNY: New York's most talented and influential.
Apartment professionals test new technology.
Security decisions--sense beyond dollars.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters