Office space is at a premium and rents have risen apace, especially in metropolitan areas. According to a recent Cushman & Wakefield study, the cost for office space in Philadelphia has risen more than 6 percent, and Atlanta has seen increases of more than 12 percent.
As they've been priced out, some companies have dropped their quest for traditional, long-term leases in exchange for shared floor space, equipment, and staff with other groups in professionally managed office centers.
The costs can be lower, too. Companies are hesitant to release numbers given the variety of costs among cities, but executive offices spaces tend to cost 40 percent less than traditional office spaces. While conventional prime office space in Portland can cost $2,000 a month, HQ Global was renting space, equipment, and staff for a mere $1,200. Great, as long as you're willing to share: according to HQ Global, sharing staff was the main complaint among clients.
But are businesses actually using these services? The numbers suggest yes. The industry supplies more than 80 million square feet of office space in the U.S. alone.