FEATURE ARTICLE, OCTOBER 2004

SMALL BUSINESS GETS BIG BENEFITS
Flexibility in leases and space can prove advantageous for growing companies.
Michael Adler

Adler

Small businesses produce up to 75 percent of all new jobs. This means that small business is big business, especially for a company like FlexxSpace, which gives small businesses the opportunity to compete in the big arena.

With property owners fighting for their business, companies like FlexxSpace have capitalized on the growth potential of small businesses by offering flexibility and powerful amenities. To provide office space that can easily adapt to the changing needs of a small business, FlexxSpace offers storefronts and showrooms as well as warehouse and traditional office space. In addition, small businesses will find an array of advanced amenities, including video-conferencing and a preferred vendor program for discounts on goods and services.

The concept of simplifying business for tenants allows small businesses to focus more on their core business advantage — and less on general office operations. These planned business environments are engineered to enhance productivity and profitability while fostering growth and expansion. It gives them the opportunity to capitalize on many aspects of business that, in the past, may have been more difficult because of size and cost restrictions.

Based solely upon the idea of flexibility, this new concept in commercial real estate takes tenant satisfaction to a new level, and commercial property owners must compete in this market to capture the growing number of small businesses. A flexible lease is one of the biggest incentives property owners can offer.

For example, FlexxSpace has developed the FlexxLease program to enable a tenant’s space to grow along with the business. It protects tenants from the growth-impeding factors found in many other multi-tenant buildings.

Carolina Home, a FlexxSpace tenant in Charlotte, North Carolina, specializes in high-quality home improvements. Owner Beth Paplocki felt strongly that she did not want to move to a new location as her business grew. She also wanted a desirable location and corporate amenities without the big monthly price tag. FlexxSpace met her needs and Carolina Home recently increased its showroom space from 2,160 to 5,000 square feet without having to change the basic terms of its leasing agreement.

During the final months of 2001, after September 11, teleconferencing companies experienced a 60 percent hike in the global volume of audio and video traffic. With growing security risks, many companies invested in high-quality teleconferencing equipment. Properties like FlexxSpace have included communal high-tech conference rooms in their properties, so tenants can benefit from the technology without a high price tag and without maintenance woes.

Halsey & Griffith, a tenant in FlexxSpace’s Miramar property in Miramar, Florida, is an authorized Ricoh Dealer. According to Burt LaCalle, vice president of sales for Halsey & Griffith, having access to impressive, state-of-the-art conference facilities is imperative for business. His company utilizes the FlexxSpace conference room at least twice a month for sales presentations and employee training sessions. Halsey & Griffith decided to move because it didn’t want to lose valuable showroom space, but desperately needed a high quality conference room. Now the company has its large showroom and a top-of-the-line conference room it may not have been able to afford otherwise.

Another amenity that commercial real estate owners with large portfolios can offer is the ability to use the resources at other properties they own. By leasing space at one FlexxSpace property, tenants have access to strategically located conference facilities throughout the network. With a simple phone call, tenants can take advantage of having a virtual office in multiple locations around the southern U.S. Other amenities commercial property owners can offer tenants may include small meeting rooms and printing, copying and dry-cleaning services.

Small business currently represents 99 percent of employers in the U.S. These companies have the ability to pick and choose where they want to lease space. In this competitive commercial real estate market, success in filling a property will depend on what lengths property owners will go to in order to offer small businesses the tools needed to expand their companies.

Michael Adler is the chairman and chief executive officer of Adler Group Inc.


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