Credit Crunch, Global Recession Encourages Rent Of Cost-Effective Virtual Office Space

Credit Crunch, Global Recession Encourages Rent Of Cost-Effective Virtual Office Space

London --- March 2, 2009...... As the worlds financial markets collapse, owners and renters of virtual office space are looking at a brighter, healthier future.

While world governments from London, New York and Tokyo to Toronto, Paris and Jerusalem stream billions into the financial and banking systems to avoid a financial catastrophe and with all the uncertainty, doom and gloom surrounding the markets, Simeon Howard, sales manager of City Office remains confident about the future.

“The world is more connected now, more globalised, and as a result, world markets are in a stronger position to act on what’s needed to curb this slide. I think it’s important to get some perspective on the whole situation, what’s happening in the markets is somewhat of a cyclical event - a sort of re-birth if you will”

With the current global climate, it’s hard to see where Simeon’s enthusiasm comes from, where’s the light at the end of the tunnel?

Howard goes on to explain: “You need to look at the domino effect here. We’re seeing huge lay-offs and down sizing. The reality is that some of the people being made redundant are either starting up their own business and getting themselves some small serviced, executive office space, or they are working from home and getting themselves Virtual Offices”?

“At the other end, business employers downsizing their staff, consequently downsize their larger conventional office space and get themselves smaller office space with flexible lease plans. F or a business owner, it’s imperative to keep cash flow solid and to ensure that instant relief can be made by not committing to any long term overheads”

Serviced, executive office space, is essentially a low cost office solution where by you can move into a small office environment without having to commit to a long term lease plan. As for Virtual Offices, it’s essentially a business centre which allows you to work remotely, by using a providers’ business address and receptionists, without having to actually have physical office space at that location.

When mixing the entrepreneurial spirit with the credit crunch recession the results can be stunning.

If it wasn’t hard enough to get a business off the ground in a credit crunch recession, it seems hardly surprising to hear that entrepreneurs and start-ups are looking to their spare rooms to set-up shop.

James Knight, an avid entrepreneur agrees, “Not everyone has the capital investment needed to get their ideas off the ground, never mind having the luxury of being able to work in a prime office environment. At a cost of £79 per month, I was running my business from a Mayfair, England UK address and having a receptionist answering my phone calls in my company name”.

Virtual Offices in prime locations around the globe, are offering their clients the use of their own addresses as a business service. Clients can publish the address on corporate stationery to marketing material, as if it were their own. The clients mail arriving in, can be held for collection, or forwarded to any location around the world. Additional services such as meeting rooms for conferences and virtual receptionists are also available.

“We live in a high-tech world where boundaries are being bridged to give the end users flexible working environments, without the overheads," says Howard. "At roughly 5% of the cost in having physical office space, it’s definitely a great way to get started.”

This is going to contribute to the upcoming crash in commercial real estate.

There is no reason for corporations to have to operate these huge office buildings with thousands of desk jockies behind computers. It’s much more cost-effective to simply facilitate work-at-home for employees like this.

I work at home myself, having voluntarily given up my high-wall office over a year ago. All I need is my company laptop, my DSL, VPN connection, and corporate email and chat/webconferencing software.

It wouldn’t even make any sense at all for me to occupy corporate office space; I work with people all over the world and my boss is in another state 1000 miles away.

It saves both me and the company money, and I’m more productive because I don’t waste any time commuting.

You forget that a lot of people are stupid and/or lazy.

The office environment makes them more productive by providing peer pressure to work and they can make up for their lack of knowledge by asking someone who knows. That way the collective wisdom of a bunch of stupid people can be applied instead of their individual stupidity.

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