Office Shared Tenancy: Technology and Telecom Services. Consideration verses Owner Occupancy.

So you're considering moving your Law Firm from a shared office space to a private suite and you want to compare costs and decide if its worth it.

When you first set up your office 3 years ago, it seemed attractive to pay one check that included rent, phones, Internet, IT support, use of a shared receptionist, use of shared conference meeting rooms, and nice looking furnished offices that are maintained by the office management compay.

As you have grown in the past 3 years, your finding that the costs for such are getting much higher.

What's good about shared tenancy

1. Easy to set up
2. Many shared services

What's not so good

1. As your business grows your costs increase
2. Inability to select your own service providers

Technology and services in a shared office tenancy are managed by building management and the costs for such are part of your monthly lease payment. This may include, telephone system, internet services, telephone trunks, dial tone, audio and visual in a shared conference room, servers, computers, switches and routers, structured cable wiring, and IT support.

To determine what's best consider the costs associated with technology. A technology company can help you determine what the costs will be and help you maintain and manage what you need. The total cost of ownership (TCO) for paying rent on your own verses sharing the services will determine what is best for your firm.

Here's an example of a 20 person firm with a shared tenant arrangement:

• Monthly rent --
• Costs for use of phone system and reception person
• Services such as telephone lines, usage, Internet, conferencing, etc...
• IT support, how much is included, how much per hour after allotment
• Furniture

• How often can your use the conference rooms and other shared facilities
• Are  the offices projecting the kind of image you want
• Does s the phone get answered the way you want, are calls handled in a way that is good for your business
• Is this the best long term solution for your business
• There are many factors to consider, the best thing to do is understand where your business is at financially, and how you want to utilize the funds. The bottom line is that each situation is different, depending on the business.