One of the
more important things you should realize when comparing these two choices is
the concept of what is called a "Loss Factor". Simply
put the "Loss Factor" is the amount of space in a office
used by such things as the hallways, closets, columns, storage area, bathrooms,
reception area, to an extent conference rooms* etc.. This space is ExecutiveSuites-Included
in the total amount of square footage but in most cases is not considered "useable."
The loss factor in the NYC Area is 20%*.
A Example would be if a company rents a 500 square foot traditional office space.
There loss factor is 100 square feet (500 x .20 = 100)
This means that the total usable square footage is 400 square feet.
In an Executive Office Space environment there is NO Loss Factor and no need
to maintain or furnish that space. This is one of the many reasons why when
comparing the two choices one must not simply compare on a PRICE PER SQUARE
FOOT basis. Executive Suites
currently has detailed information
on: + different Executive Office Centers
throughout NYC.
|
These are offered
by some of our most trusted providers Provided By The
Offices Organization General Comparison - Actual Costs Vary
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| Conventional Office | Executive Suite Office | |
| Office Space Rental | Reception Area, Conference
Room, Kitchen, Equipment Work Space (750 sq. ft) $ 950.00 |
Private Executive Suite
Office / aka Business Center Office (180 sq. ft.) $ 850.00 |
| Staffing Requirements | Administrative
Assistant to act as Office Manager, Operator, Receptionist $ 1,800.00 |
Executive
Suite Staff $ 00.00 |
| Employee Benefits | Vacation, Sick Leave, Disability,
Health Insurance, Training $ 400.00 |
Executive Suite Staff $ 00.00 |
| Secretarial / Word Processing | Administrative Assistant $ 00.00 |
Use of Executive Suite Staff
for 10 Hours Per Week at $22.00 Per Hour $ 880.00 |
| Equipment Leases | Complex Photocopier, Computer/Printer
for Staff, Fax Machine, Postal Scale and Meter $ 250.00 |
Use of Executive Suite Equipment $ 00.00 |
| Telephone Equipment | Lease Complex Equipment $ 100.00 |
Use of Executive Suite Telephone
Equipment $ 75.00 |
| Office Supplies | Paper for Fax and Copier,
Developer, Toner, Ribbons, Coffee/Snack Services, etc. $ 150.00 |
Use of Executive Suite Equipment $ 00.00 |
| Photocopies | Use Own Copier (Supplies
ExecutiveSuites-Included Above) $ 00.00 |
Assuming 500 copies per
month at $.10 each $ 50.00 |
| General Furniture | Lease: Conference Room Table
and Chairs, Reception Area Furniture, Desk & Chair for Assistant,
Microwave, Refrigerator, Coffeemaker Etc. $ 250.00 |
ExecutiveSuites-Included
with Executive Suite $ 00.00 |
| Office Maintenance | Security Service, Utilities,
Repairs, Janitorial $ 75.00 |
ExecutiveSuites-Included
With Executive Suite $ 00.00 |
ANNUAL COSTS: |
$ 3,975.00 x 12 Months = $ 47,700 Per Year TOTAL SAVINGS ! |
$ 1,855.00 x 12 Months = $ 22,260 Per Year $ 25,440.00 !! |
• Upfront Capital
Savings: $88,534
• Annual Recurring Savings: $52,295
• Annual Savings: Over 50%
|
Upfront
Costs |
Traditional |
ABBY |
|
Space Build-out in Excess of Landlord Allowance |
$28,500 |
$0 |
|
Furniture |
||
|
Reception Station |
3,800 |
0 |
|
Conference Room Setup |
11,400 |
0 |
|
Individual Office Furnishing (4 Workstations Optional) |
11,400 |
800 |
|
Security Requirements (Refundable) |
28,500 |
2,816 |
|
Staff Recruiting Costs |
4,275 |
0 |
|
Office Equipment |
||
|
Phones |
2,850 |
0 |
|
Fax Machine |
950 |
0 |
|
Other Office Equipment |
950 |
0 |
|
Setup Fees (Telephone, etc.) |
180 |
665 |
|
Total Upfront Capital Required |
$92,815 |
$4,281.00 |
|
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|
Ongoing
Annual Expenses |
Traditional |
ABBY |
|
Rent Expenses (Executive Suite office without furniture) |
$34,912 |
$33,792 |
|
Telephone Lines |
2,736 |
2,736 |
|
Telephone Usage |
2,850 |
2,400 |
|
IT1 Internet Access with router |
18,240 |
5,520 |
|
Office Staff, Including Benefits |
32,110 |
3,192 |
|
Temp Agency Expense (Vacation/Sick Days) |
2,394 |
0 |
|
Other Services (Delivery, Office Supplies, Catering, etc.) |
2,280 |
2,280 |
|
Repairs & Maintenance |
1,995 |
0 |
|
Coffee & Beverage Service |
1,140 |
0 |
|
Additional Equipment Rental |
||
|
Postage Machine & Meter Rental |
798 |
0 |
|
Copier (Based on 1,000 Copies per Month) |
4,560 |
1,800 |
|
Total Ongoing Expenses |
$104,015 |
$51,720 |
Recommended Pages from Executive SuitesExecutive
Suites Monthly Costs |