Spare office space became a new revenue line for Beowulf

CHERRY HILL -- A family of business operators is taking advantage of some extra office space to tap into the $3 billion pay-as-needed business centers industry.

The à la carte office services concept, in which businesses rent space and individually priced business services on a pay-as-needed basis rather than sign up for hefty long-term leases, has been well established in both Europe and the United States for several decades, with annual projected growth for the next five years of 5 percent to 7 percent, according to Sam Albrecht, executive director of Office Business Centers Association International, a Mount Laurel-based association with 225 members.

The à la carte approach can save a business operator 20 percent over a comparably outfitted standard office, Albrecht estimated.

"It is a idea that is especially attractive for firms in large urban business districts such as New York City, London and Paris, where commercial square footage rates are sky high," said Albrecht.

But even in Cherry Hill, where rents, utilities and facility management costs are relatively reasonable, Beowulf Corp. has been able to post an estimated yearly growth of 10 percent in the past three years, and the company said it expects to double its current client base of 100 in the next year.

Beowulf models its flexible office concept after industry giant HQ Regus, which emerged in the 1970s and currently has some 800 locations worldwide, according to Sean Malady, vice president of sales and marketing and co-owner, along with his brother Mike and father Jack, of Beowulf.

"It's the perfect solution for many business people, who either don't have a lot of upfront capital, or who simply don't want the hassle of dealing with day-to-day facilities management-related issues," Malady said.

Sean, Mike and Jack also own and operate Cherry Hill-based J&J Staffing and Resources, a 35-year-old employment agency with 10 locations in the tri-state area.

It was some space leftover from the acquisition more than a decade ago of property to accommodate expansion of their employment agency business that ultimately led to the launch of Beowulf. The trio currently owns two buildings under the Beowulf banner with combined square footage totaling 42,000. The buildings straddle each side of Route 70 at the intersection of Marlkress Road.

"We generally reserve our 1,763-square-foot location, on the eastbound side, for clients who just need floor space and can provide their own staffing and administrative needs," said Malady, who charges tenants $19 to $22 per square foot on average.

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source: bizjournals.com