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This space for rent (immediately)(Asbury Park Press (NJ) (KRT) Via Thomson Dialog NewsEdge) Jan. 7--The Intelligent Office space in Middletown seemed to offer everything a fledgling money manager such as Nisa Khan would need: A desk and chair, wood-paneled rooms, potted plants and conference tables. Throw in a receptionist to answer her phone, and a mail box and copy machine at her disposal, and Khan was sold. "All the surroundings really make it a professional environment," said Khan, a Colts Neck resident. And that's an important element, given that she needs to make a strong first impression to win over clients. That's all part of the trappings at Intelligent Office, one of several executive office suites at the Shore that offer small business owners a ready-made, high-end office. It's an idea that operators believe can flourish as business owners search for flexible leases and try to keep their overhead low. But they say they still are tinkering with ways to turn the concept into a profitable venture. The idea takes its cue from business incubators -- buildings typically associated with universities that allow start-up companies to get top-notch office services. Its designed to solve two problems in the office real-estate industry: Small, start-up companies don't need as much space as landlords typically offer, and that leaves landlords with space to fill. So some of them have modified their buildings and added amenities such as receptionists, conference rooms and kitchens. And they have restructured their contracts to make their offices available for just an our to around the clock. "You don't need the overhead of a secretary. You're not making a five-year commitment. You don't have to invest in furniture," said Dennis Muenzer, who managed an office suite at the Freehold Executive Center in Freehold Township from the mid-1980s until 1998. "And you literally have a turn-key operation." Muenzer said the executive-center concept has attracted publicly traded companies and independent landlords alike. One of the world's largest operators, the Regus Group, based in Surrey, England, has suites in Middletown and Freehold Township. Meanwhile, an independent group owns Main Office Suites in Eatontown, featuring 40 offices, two conference rooms, two kitchens and a fitness center. "There's a much greater need for smaller office space because of the unpredictability of the economy," said Fran Rush, general manager of Main Office Suites. "This allows companies to expand or decrease in size." The Intelligent Office location, technically in Middletown, has a Red Bank address. It opened in 2003 with 14 offices. It has two receptionists who welcome clients and answer phones with a greeting that's tailored to the tenant. Some 80 businesses -- lawyers, contractors and financial planners among them -- use the suite, some for an hour or two a week and others full time. Office manager Jessica Matyi said fees vary, depending on how often a tenant uses the facility. She said a client who uses the office four hours a month could pay $155, but she declined to provide fees for clients who use it more often. "It can take a start-up (business) and make it look like an established, professional (business) at one-tenth of the cost," said Kenneth Rogers, owner of Intelligent Office. Intelligent Office is based in Boulder, Colo., and Rogers opened a franchise here after he had trouble finding a qualified receptionist for his benefits-consulting business. He leased the top floor of One River Center, a building that used to house AT&T Corp. He spent $400,000 retrofitting the space to include state-of-the-art technology. For all their attributes, executive business centers face nearly continual financial pressure. Regus, for example, acquired HQ Global Workplaces Inc. in 2004, two years after HQ was hurt by the recession, defaulted on a debt payment and filed for Chapter 11 bankruptcy. Muenzer said a traditional source of revenue -- telephone fees -- has been eroded by the growth of e-mail and cellular telephones. Rogers said he too has yet to find the right mix that will make the business center profitable. But he thinks the solution will be found in a growing economy that will generate more entrepreneurs like Khan. Khan was a telecommunications engineer for nearly 20 years, but when the technology industry ran aground in 2001, she changed course and started her own financial advisory firm, IEM Asset Management. She said she needed a nicely appointed office to meet clients, and she didn't want to work from home. So she took up shop in Intelligent Office's center about two years ago, convinced it would pay off. "I needed to present myself professionally as well as having professionals (surround) my business to set myself up for my clients," Khan said. To see more of the Asbury Park Press, or to subscribe to the newspaper, go to http://www.app.com Copyright (c) 2008, Asbury Park Press, N.J. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |