Commercial Property Broker, Investor Team Up For Small Office Web Site
On a chilly day last fall, commercial real estate broker Guy Scavone II and real estate investor Chris George met to discuss the marketing of a 9,000 square foot light industrial building George had purchased near downtown Royal Oak.
Scavone explained that based on the condition of the building, and the current market conditions, George would be lucky to get $4 per square foot -- if they could even find a tenant.
Scavone mentioned, however, that he had been fielding a lot of calls lately from small business owners that needed office space from 100 to 500 square feet. These tenants were either moving out of their home offices into their first office, or downsizing into more affordable space.
The two quickly saw an opportunity and George took the gamble to renovate his property into small, flexible, modern offices. Through the use of social media sites and online marketing efforts they were able to fill the building within six months. Thrilled that the gamble paid off and that they were able to convert a derelict old industrial building into something new and fresh while increasing rents, the two considered their next move.
This step was to create SmallOfficeSearch.com, a Web-based tool that exclusively promotes office spaces that are 3,000 square feet or less. Working from an office in Royal Oak beginning in March, the duo created a site that gives owners a way to reach out directly to the tenants that are looking for space.
Real estate appraiser Matt Diskin, owner of Royal Oak-based PVG Appraisal, needed a flexible space with a private office that also provided him access to a conference room and DSL to operate his business. Diskin found smallofficesearch.com on Google and was quickly able to get a list of the buildings that met his specific needs.
"SmallOfficeSearch.com was simple, and easy to use," says Diskin. "I typed in Royal Oak, entered the price point I wanted, and the amenities I needed. It gave me several choices and within a week I was in my new office."
Said George: "It's a no brainer for building owners. This is where people are looking for small spaces. One of our clients and early subscriber to the site, Tina Turner, had a building listed with a broker for two years with no results. After two weeks on our site she had a signed lease."
SmallOfficeSearch.com has four employees and serves all of Michigan with plans to expand with offices in Ann Arbor and Grand Rapids. While the focus is just Michigan for the near term, the pair definitely see potential for a national expansion as the business continues to grow.
Office space rental rates on their site range from between $150 to $2,500 per month with a typical office running about $500 per month. The cost to building owners to list a building on the site runs $29 per month, and there is never a cost to search the site.
"Our site is designed to allow small business owners to search for what is most important to them - location, size, and monthly rate", Scavone said. "SmallOfficeSearch.com strives to make the site selection process as simple as possible in an effort to help small business owners focus on what they do best - growing their business."
