We currently have a small office that costs me about $1,200 per month. All the agents home office, and the office sits empty 90% of the time. Our lease ends in March, and I was thinking of getting rid of the office, using the mailing address of an executive suite in the building, and spending the money on marketing to provide leads for my agents. Any thoughts?

What's the input of your agents? If they don't care, I'd drop the office.

Who uses it the rest of the time (the other 10%)? If the 90% doesnt seem to need the office space, per PP, you could get their opinions, then shut down. I do know some real estate offices do need a physical space just because of the clients they deal with.

I read on a NAR article that a virtual office is the way of the future... And also many office buildings do let small businesses set up their "virtual offices" ie using their conference rooms should they need a place to meet clients. I think that's a small fee compared to $1200/mth. So, your agents could still opt to use the conference room should they require one.

As for me, I'm in the process of setting my own virtual office - I'm just a salesperson so that anywhere I go (I go with my laptop) and in the future set up wireless access, I can be in business anywhere I want. I have a on-the-go lifestyle and a virtual office best suits me. I have an e-fax and I prefer to meet clients at Starbucks....

Crazy idea: I'm also not sure if this is possible but if you are interested in having the office space, could you re-arrange the office to make it smaller, then sub-lease the rest - if that's an option.... to a small mortgage company, or a home inspector, appraiser? Create like a one-stop shop environment, but the "tenants" are still their own businesses.

I run a completely virtual real estate company and its working out great

I'm in the process of ditching my office also.

I run a mortgage brokerage so I have a bit more leadway with "not meeting with clients." I've been refusing to meet clients for years, and my LOs know that I'd rather not see them either.

I guess I'd look at the productivity of that 10% that uses the office...and also what they use the office for. If it's for chatting and escaping their families, then I'd get rid of it.

However, I may reconsider if that 10% is responsible for 80% of your revenue. Then...maybe what you should do is fire the other 90% of your agents.

my humble .02

Personally, i think having somewhere to go to work like a physical office is great. I tried working from home but wasn't really as motivated as oppose to having to pay your lease every month.

I agree. If you can find an executive suite for $250/mo or so... with a shared conference room, that would be a good compromise.

I just ditched my office for the virtual set-up. i have a laptop, portable printer and cell phone. i also pay $125 a month for an address,receptionist and conference room and desk space at an executive suite when i need to meet a client other than at the property or at their home. Works great for me.

In Colorado, a brokerage firm must have a physical address that offers reasonable access to the public - it can be a home office though I believe.

Jennifer

What our broker does is pretty smart she buys a duplex or quad rehabs it downstairs for the office,then sub-leases the upstairs.Most of the time agents are not there or are just dropping off paperwork,etc.The subleasors pay for the mortgage and our broker has an appreciating commercial assett that has tax-write offs as well as depreciation.

When I owned my pizza restaurant I used to lease-I will never do it again.The only one you make rich is the landlord and usually you are responsible for the 15 year old a/c in the cieling and the plumbing that doesn't work properly.So you improve there commercial property and then when you start making money in a few years they riase the rent again and have you over a barrel with your renewal because they know it would be really hard to move your business.

If you only pay 250.00 that is not bad,but if you are shelling out 1,200.00 you might as well purchase a property.That way if the business doesn't work out you still have a salebale assett.

Thanks everyone. Really the 10% it does get used is for weekly meetings. Of everyone I talked to, all of the agents said "Ditch it. I never use it." We can still use the conference rooms, receptionist, get our mail and packages dropped off- etc.

is $1200 in colorado rent high ? how many square feet is your office? just curious

We have a small, but highly visible, office in the center of the muncipal area of town that really helps establish our market presence. (Most folks know where their town hall, police station, court and Chamber of Commerce is located v/s some low visibilty strip mall space with tiny signage.) Anyways, the walk-in customers that turn into clients alone pay for our occupation costs which include our mortgage note since we own the property. If this was not the case, I would seriously re-consider office space costs. I think most new generation people do not mind where business takes place, but the older generation expects a nice office. We set up ours to look like an attorney's office with high end furnishings. I wish you the best and Happy Holidays.

I agree. I personally lean toward virtual, but there are those folks who expect a brick and mortar business. If you want to cut costs, I would find something modest but effective for the purpose of my agents to meet clients, etc.

Eventhough the "virtual office" seems to be the new thing of the future, I guess I'm old school in thinking that an actual office is still important. It seems like clients like to know where to find you at all times. They feel uncomfortable enough when I tell them to call me at home, I can't emagine how they would react if they found out I didn't have an actual office. I also think that clients may think that I cannot meet their expectations, or that they may have less professional respect for me because maybe they feel like I am a fly-by-night Realtor because I do not have an office. Even though we all now that this is not the case, I think it is still important to keep in mind how the public may react to such a change. I think the newer generation could care less.