The evolving role of the Service Office Provider.

The role of the Serviced Office provider has evolved from the initial version of providers. They were primarily landlords or building owners whom had agreed to cater to large MNC (Multi National Corporations) that had financial strategies and business strategies that ranged from lowering their initial investment, especially in countries that were very volatile. Another would be that they could exit quickly without too heavy losses.

The initial versions were catered for single company occupancy. The focus then was reducing complexity for the tenant with compensation that was higher. The initial model was very lucrative for the owners with some contracts being that they were paid up front for the entire tenancy. Hence they then could reinvest for another property.

As time went along more smaller companies sent representatives out and the need for a shared version of this facility arose. Hotels initially were the hosts for these outfits that were either smaller or temporary in nature. The hotels provided a mixed residence and business centre facility for them. But as the numbers arose and the hotels rates for services raised alternative operators. These version were very staid and rigid. A lots of structure was adhered to just as in a normal office. In a sense they were very classy in their delivery.

As economies exploded in a positive way, more people ventured into business. As such the demand for office space grew. But not everyone had the expertise to build and run one. This opened up the market for more enterprising entrepreneurs whom then built and ran it as a business.

Today serviced offices have evolved to incubators, entrepreneur encouragement/development centers and more. The flavor of operator basically is in two forms, corporations (Big and also smaller ones) and owner operators. The theme these various operator have been described a little bit in an earlier post that we did. But one very useful delivery these new breed of operators bring is their skills from their earlier working life. That is processes, contacts, mentoring and idea building/developments, introduction to funding with much more over and above just space, service and technology.

This is another element that could go into your evaluation of your choice of Serviced Office operator for your business.

One point to note is that not all of these operators own their premise anymore, but the demand is such that even with rented premise, they are operating this business. One of their current revenue streams are providing consultancy to property investors to convert their premise for providing their tenants with full service premise. Property investors are beginning to realise the competition for tenants in the unimproved property rental market is currently soft. Due to the high demand of rental rates, deposits, difficult owners and business environment that is challenging for the potential tenants whom need to keep a higher fluid cash flow level. Those whom have excess would be investing into the property for their own business use and more.

Going the Serviced Office way, deposits are lower (less months required), termination, resizing is more flexible with shorter duration of notice and more business support is available for purchase by the business owner.

Business Address…. more than just a label to a location

All space can be used for all kinds of purposes. But being able to locate the space requires structure, by all norms this comes with labeling schemes…. in this case addresses for locations.

Addresses through the ages have started from just a generic general area till progressing down to a specific unique location right down to a unit within a location. Example? Well it used to be just a reference to a town or village and person known within that town or village would be known within that community. So anyone from outside that community just needed to ensure that it reached that town or village with the name of the intended recipient and they would be assured it would reach that person. Of course the possibility it may not reach was always there. And it was an accepted risk. Especially in social engagements.

But as we in now present times have multiplied, in terms of names and locations that have many similarities but yet could result in great differences, the need to have very specific addresses has increased. More so in business. Even with the advent of virtualization, electronic communication systems, a good old physical address is still important. Some may refer to having a store front or brick and mortar location with an address as still relevant. And it is true.

As currently more places cost to acquire or build up along with the idea of permanence having so little stability due to the ever constant changing human needs, to set up a permanent place may prove daunting in terms of complexity and cost. So a good middle ground with possibility to scale according to need is to go with the Service Providers. They could start with the basic provider like a General Post Office Box to a more commercial valued presentation such as a professional mailbox service. All these providers may provide you a variation in their service in terms of general box to personalized box with supporting services such as customised receiving services and more.

Today a scale up to this service will be Serviced Office Providers whom will also have available Temporary and Longer term packages ranging from open concept to private and work group office concepts. Along with that also meeting rooms, conference and seminar facilities.

KANSHARE SDN BHD is one whom is able to provide you with some of those services. And where we are not able to meet your needs, through partnerships and good friendly working relationships with similar providers we are able to possible recommend you one whom has a solution to meet your needs.