TechSpace operates facilities here as well as in Boston and New York City where it provides a flexible full-service office environment with technology support through a Tier 1 data center. Flexible lease terms allow room for upsizing or downsizing as necessary, including everything from workstation furniture, advanced voice and data telecommunications, IT infrastructure, reception services and office supplies. The approach is designed to provide tenants with the capability to grow their businesses without making a long-term commitment to occupancy or a capital investment in the space.

CEO Guy Pickrell of TechSpace tenant NationStaff says the long-term commitments of traditional office space are really difficult for start-up companies like his, which has changed its space 10 times with TechSpace. "We would have been in some tough binds if we didn't have the flexibility to change our size," says Pickrell, whose company offers executive search and consulting services for the financial industry, with a focus on financial technology.

The TechSpace story reflects conditions that prevail throughout the office leasing market. A recent report on the Orange County office market by CB Richard Ellis points out that although leasing activity continues at roughly the same number of deals, the average office deal was approximately 30% smaller in the latest quarter. Office space users are operating with fewer workers, causing tenants to downsize and/or relocate to smaller quarters, the CBRE report says.