About Business Centers…
(History & Facts)

History: Various organized shared office environments began to arise spontaneously in a number of places in the late 1960's and early '70's. During this time, particularly in Southern California, the concept caught on with Attorneys and other law professionals who wanted to operate their own practice and yet still have access to the facilities, amenities, and prestigious image that would come with working for a larger firm. "Executive Suites" were born. Gradually, more and more companies, in an ever growing list of industries began to realized that they too could share in the cost savings by taking advantage of the economies of scale created when individual companies share the cost of common resources. The industry expanded in the early 1980's and then reached a plateau during the real estate recession of the late '80's and early '90's. During this time, the industry was largely made up of local and regional firms. In the late '90's large companies and Real Estate Investment Trusts (REIT’s) invested hundreds of millions of dollars into the industry and, consequently, it has undergone a massive consolidation. Today, there are now over 4000 facilities in North America and more than 5500 worldwide.

What is an Office Business Center? Office Business Centers are shared office facilities, which are fully equipped, staffed and furnished. For a monthly fee, customers receive the use of an office (or offices) with necessary services such as telephone answering and office management. They also share common areas, such as reception, kitchen and lavatories, with other clients in the facility. Additional services, e.g., fax, copying, courier, word-processing, technical support, are generally available and are billed as used. These facilities are also known as executive suites or business centers.

How They Are Used? Office Business Centers are used as primary offices by startups and other small businesses and organizations. Larger corporations increasingly use the facilities for sales and field offices. Home based businesses use center facilities and conference rooms part-time for satellite offices. All of these basic applications are growing rapidly.

How Large are they? Office Business Centers typically consist of one or two floors in an office building. They range in size from 10,000 to 75,000 square feet. They tend to be somewhat larger in North America than in Europe or elsewhere in the world.

How Much Does it Cost? Depending on location of the center and the location and size of the office in the center, the monthly fee generally ranges from $500 to $2,500.

Who Uses Them? Office Business Centers are often used by entrepreneurs, professionals, small businesses and startups. Larger companies also use the facilities, often in multiple locations, to set up networks of sales and branch offices. They are also used by government agencies, retired individuals and as temporary quarters by organizations of all sorts for projects.