CHICAGO—In the past dozen or so years, shared office spaces have started spreading throughout the CBDs of many US cities. The greater flexibility desired by companies and workers has increased the sector's popularity, but after several years in business, more shared office providers are realizing its time to bring in changes.
Ron Bockstahler, chief executive officer of Amata Office Solutions, which operates six shared office centers in downtown Chicago, tells GlobeSt.com that just as every McDonald's gets an update every few years, shared office spaces need periodic refreshing. The hospitality industry in particular has generated “statistics that show if you don't update every several years you will go into decline.”
In important ways, he adds, shared office providers are “in the hospitality industry; you are competing directly with hotels so you need to focus on what hotels do in terms of customer service.”
In the past, Bockstahler says, many hotels would nickel-and-dime their guests, charging them extra for Wifi and even snacks. “They now realize they have to treat their guests like royalty.”
Likewise, providers like Amata treat tenants like guests and make sure they have access to a full-support staff with concierge-like services. This includes everything from move-in coordination to lunch arrangements. And many centers also offer free hotel-level amenities such as on-site gyms, lounges and coffee bars.
“You've got a younger generation coming in to your centers and they want to see different amenities,” he says. Founded in 2002, Amata is significantly revamping two of its downtown centers, for example, including a complete gut job of a portion of its 20,000-square-foot space at 225 W. Washington. The renovation includes a new lounge, café, meeting rooms, art and brick work.
In addition, the company is reworking its space at 150 N. Michigan. Although this rehab project is not as comprehensive, Bockstahler says, it's a good example of how the industry is changing. Part of the aim was to open up the space and make sure its lounge had a view of Lake Michigan and the harbor. “Thirteen years ago, I would have said 'forget it,' that's an office and we need to use the space to generate revenue.”
Amata also likes to include a “cognac room” in its offices, all of which are in class A high-rises. About 40% of Amata clients are attorneys, and many like to toast newly-closed deals with a celebratory drink. “It's a warm, cozy room with crystal decanters that gives you the comfortable feeling you would get in a hotel,” he says. “It's not something you saw in a shared office space thirteen years ago.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
