For most businesses, keeping costs low and profits high is the primary goal. This mantra influences much of the decision process within the organization.
One important decision that entrepreneurs have to do is pick out an office space. Of course, it must be cheap and fits the need of the business.
When it comes to choosing an office space, business owners are often faced with a common dilemma. What type of office space is more suited for their business: an executive suite or a conventional office space?
Executive suites became have become popular in the past two decades. Rising real estate costs force businesses to choose it over traditional offices. Though it’s usually cheaper, executive suites are not suited for all types of business.
In this post, we’ll help you figure out which office setting is more favorable for your business.
What’s the Difference Between an Executive Suite and a Conventional Office Space?
In general, there are three major differences between both office settings. They vary in amenities, area and lease terms.
Conventional office spaces have generally bigger areas than an executive suite. Basic amenities such as furnishings, phone systems, and internet connection are available. But they are often purchased or leased individually on top of the original lease amount.
Rental agreements often specify longer rent terms. They commonly last three to five years. The longer the term, the cheaper the rent is. Some terms can even extend up to 10 years. Sub-leasing is usually prohibited and tenants are usually required to look for a new occupant if they want to terminate the lease prematurely.
Meanwhile, executive offices have more flexibility in rent terms. Some office spaces can even be rented on a month-to-month basis.
Its smaller than the conventional office and amenities are shared among other occupants. This includes lobbies, reception areas, receptionist personnel, kitchen, break rooms, and meeting rooms. The rent contract often includes access to all the facilities without any extra cost.
Its “plug and play” model makes it much more affordable than conventional ones. They are also commonly known as a serviced office, business center, shared office space and hoteling.
Pros and Cons
Should you go for executive suites or conventional office spaces? There is really no sweeping answer to that. Each business has different needs. So we broke down the pros and cons of each office setting to help you figure out which is best for your business.
Start-ups and small businesses can save more money with executive offices. It’s cheaper and has all the regular amenities of an office. You don’t have to invest in a phone system and other office equipment. Even security systems are in place too.
But for businesses with more established operations, a conventional office is more affordable. Remember that executive offices are less roomy than conventional ones. If you have a sizeable number of employees, it could get packed. Not to mention that they have to share the facilities with other tenants. This might affect efficiency in the workplace.
As mentioned above, amenities in executive offices are shared among tenants. This includes a common kitchen, lobby, reception area, and office equipment. Our executive office space for rent in Boca Raton, Florida even has maid service, cable TV and fully sound-insulated rooms.
High definition cameras are also installed in all corners of our office building. It’s situated just a few blocks from the ocean too, giving each office space a scenic view of the beach. So you’ll always feel that holiday vibe even when you’re working.
In traditional office spaces, each tenant can choose their own amenities. They can opt to put a common area for employees or a lounge for clients to wait in. It’s completely their call as conventional office spaces are completely bare upon turnover.
Most of the time, phone systems and internet connections are their responsibility too. Unless the lease contract specifically says the landlord will take care of it.
When it comes to lease terms, executive offices offer more flexibility than conventional offices. Rent terms for executive offices are shorter and renewable periodically.
This is perfect for small business owners who are still finding their footing. They don’t have to be tied to a long-term lease contract should they decide to switch to a virtual office or stop their operations. If they go for the latter, they won’t have to worry about furniture disposal too. This is because executive offices usually come fully furnished.