OBCAI Pinpoints Benefits of Business Centers over Sublease Space

With the ability to provide flexibility, cost-savings and mitigate risk, an Office Business Center is turning out to be an ideal solution for businesses navigating though this challenging economic environment, according to Office Business Center Association International (OBCAI).

As the glut of sublease space rises due to the financial crisis, OBCAI warns companies not to succumb to what appears to be a good deal. There are four key factors to consider before signing on the dotted line:

• Businesses are at the mercy of the sub-landlord: The sub-landlord’s goal is to reduce or eliminate its financial obligation to the landlord. If the sub-landlord can’t meet its debt obligation then the sublease agreement is at risk.
• Inability to match office space requirement with business needs: Forecasting the amount of space that a company will need three months to five years form now is challenging. A sublease locks companies into a rigid agreement that may or may not work for their business.
• Sublets do not include proper infrastructure: Although rare, some sublets may be fully furnished. If there is an IT or phone system in place it will need to be adapted and managed. These costs add up quickly.
• Finally, the sublet agreement does not provide direct rights to the space: The company subletting the space must go through the sub-landlord with problems. The sub-landlord then acts as the liaison with the landlord. The loss of time and money are seriously at risk here.

“Today’s changing business needs has led to an increased demand for a flexible workplace environment available in an Office Business Center. OBC’s offer a complete range of office programs including virtual and full-time offices, meeting rooms and videoconference facilities that support the dynamic needs of business today,” said Carrie Gates, President, OBCAI.

Each business center is fully wired with telephone lines, equipment and up to date technology infrastructure and staffed with support personnel, including a receptionist office manager and customer service representative. Clients maintain control by dictating the terms of their stay, which can range from day office packages to five years. These business-ready places to work benefits both Fortune 500 companies as well as start-ups as businesses who want to save money on their facilities costs, maximize space utilization and significantly reduce risk.

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About Office Business Center Association International, Inc. (OBCAI)

Office Business Center Association International, Inc. (OBCAI) is a member owned nonprofit trade association. OBCAI is the international trade association representing office business center owners. Office business centers have quickly become a major business force in the world economy. Business centers provide fully staffed and equipped Office Space, Meeting Rooms, Video Conferencing and Virtual Offices. Since 1985, the association has provided members with the resources they need to enhance professional performance, generate revenue opportunities and promote continued growth and success. With approximately 500+ member locations worldwide, OBCAI is the leading organization in the field of office business center professional development. Historically Business Centers have also been known as “Executive Suites or Serviced Offices.”