The prognosis is good for the growing symbiotic relationship between virtual office space options and biotech and technology start ups. The build to suit option of virtual office space directly addresses the demand for office space in the new non-traditional business structure and lack of availability in vital locations. With the array of specific technical options and placement of these critical hub spaces, the decision for many Entrepreneurs out of the gate should be focused on the product and funding, not on staff, office space, equipment and a large lease every month.
Each virtual office space setting is unique, in most cases, and careful investigation should go into exploring a location or virtual office center that suits your vision. Some of these office spaces have become molded by their area, with the majority of tenants comprising a certain sector (i.e. legal, recruiting, sales) or even meshed within the culture of the area, comprised of technology and entertainment epicenters. Changing the face of white hallways with numbered office doors (all closed) and strangers that pass in the hall, many of the newer concepts, focus on collaboration and co-working space, even networking, seminars, and funding opportunities.
In the San Diego economy the Biotech industry is one of the fastest growing and highest publicly and privately supported (funded) industries. Conversely the Corporate Real Estate market has not fully rebounded from the crash. Subsequently, leasing or renting of office space or retail space and is due to increase in 2013 as the stabilization process meagerly continues in higher end markets. Additionally, the forecasted vacancy rates of Industrial space is set to decrease by 1.3%, which ultimately puts control and leverage into the hands of the owner. The simple supply and demand for space is not the only issue that is affecting availability or suitable office space it’s the whole package.
The search for the right diagnosis for the problem of office space is also felt in the technology start-up sectors in the entire Southern California region, where those real estate markets are at a steep premium, among the highest in the nation. The elevated levels of business conducted in certain regions of California are considered “Innovation clusters” and have the support of Angel Investing, Venture Capitalists and Crowdfunding resources behind them.
Proving your business model through the next phase of development and future stages thereafter requires diligent attention to avoid the bleeding of resources. Where there is a will and a need, there is always a way, through innovation and perseverance. Surrounding yourself with congruent or complimentary types of individuals through this type of office space can reinvigorate your perseverance and deter costly, unused or unnecessary expenses.
In many cases, in both the BioTech and technology industries, they have opted to hire (even outsource) specialized and selective individuals with whom can contribute to the next phase regardless of location. This type of collaboration or co-working environment, compared to the traditional structure eliminates excessive costs (travel, office lease, relocation costs) when hiring for critical positions and stops the bleeding to the whole. Choosing higher level individuals in strategic positions and focusing on the basics for your business is the streamlined office space of the present. Catching the virtual office space bug is not a seasonal virus, but a widespread outbreak across the nation; in this case it started in California.