Office Space by the Hour

Office space by the hour

Business expands as economy shrinks

'This is the perfect time for us," says Brian Monteith, master franchisee for Intelligent Office in Canada. "Where some see uncertainty, we see opportunity." He's not kidding. Since opening its first location in Canada in the spring of 2005, Intelligent Office, a virtual office for companies looking to save on the cost of leasing office space and hiring administrative staff, has opened another seven locations across Ontario with plans to move into Montreal and Vancouver this year. It is on track to meet its target goal of 40 offices by 2015.

While the economic downturn is taking a toll on companies worldwide, it has proven to be an opportunity for Intelligent Office. "We measure our lead sourcing every month, and leads have doubled since September, 2008, just as the economy started faltering," Mr. Monteith says, adding February was a record month for leads at all locations.

"Small business owners are looking for cost-effective solutions to renting office space, which can easily run between $6,000 and $8,000 a month, and that's where we come in. We offer a prestigious business address, mail service and 24/7 access to the space on a pay-per-use basis. It's a variable cost as opposed to a fixed cost of thousands a month on a lease."

Members have access to all locations, full-time receptionist and lobby listing, turnkey telecommunications and phone service and for each location up to eight Intelligent Assistants or remote receptionists who answer calls through computer telephone integration software and seamlessly connect that call to members, wherever they are.

Intelligent Office helped Michael Gerochi open Mind Mappers, a management consulting/training company and reseller of Mind Mapping software. In 2005, he was working on contract at the Ontario Lottery Corporation when he heard an ad for Intelligent Office. "I wanted to launch my company, but the cost of having a professional location was simply too high," says Mr. Gerochi. "This gave me the push to do it. I pay $300 a month and I can appear big-time to major clients.

"I use their reception staff -- they take all my calls -- office space, mailing service. The building address is advantageous. It's more professional than a home address and filters out unwanted solicitation. I can rent a cubicle for $15 an hour or a window office on the 57th floor at First Canadian Place in Toronto for $25 an hour instead of sitting in the food court with my laptop." He also uses the boardroom ($70/hour) to network with industry leaders.

"I've been using this service for four years now," Mr. Gerochi says. "I don't see a need to acquire bricks-and-mortar office space, even as I grow. We would do our weekly meetings and book the office space when needed. Costs are really low."

The need to reduce overhead in this economy is just part of the reason for Intelligent Office's growth. "The message is loud and clear," Mr. Monteith says. "People are looking at more cost effective and flexible ways to do business. It's a trend that will continue even after the economy recovers. Many Fortune 500 companies are getting out of the real estate business and more of their employees are working from home. In turn they need to outsource a variable rent office solution to their employees when they need it. This is all trending to the future. It's not just the little guy saving money. It's the big guys, too. And that's where companies such as ours come into play."

That is what led then venture capitalist Ralph Gregory, to launch the company in 1995 in Boulder, Colo. "The idea was simple -- clients could work from home or anywhere their laptops and cellphones took them, but Intelligent Office would be their professional office base, fielding all business calls, faxes and mail, and provide a first-class corporate facility with offices and conference rooms available when needed."

It worked. In 1999, he started the franchising program in the United States where there are now locations from coast to coast. Mr. Monteith envisions the same for Canada. "The virtual office is becoming the norm in Canada," he says. And he is making sure Intelligent Office is there to meet growing demand. "We want to position ourselves as an integral service. Work is something you do. It's not a place you have to drive to any more. And that is thanks to all the technology options available."