Renting Office Space on the Cheap

Posted by: Rachael King on August 13, 2009

Not long ago, the folks at Canadian software company Brightspark noticed that tech companies had a lot of extra office space. Some companies had paid for 5-year leases with the intent of growing into the space, but the recession dampened those plans, says Randy Busch, vice president of marketing at Brightspark. Some companies had tried to sublet that space with no luck, he says.

Office vacancy rates are on the rise and by the second quarter of 2009, it increased to 23% globally, according to The Economist. That same report found that office vacancies in midtown New York City were approaching 10%.

So, what’s a company to do with all that extra space? Brightspark has come up with a way for companies to rent that space directly to others for short-term use. The company created a Web site called iStopOver that lets people rent excess business space such as cubicles, offices, meeting rooms, boardrooms, presentation centers, warehouses, studios and even parking spots. A furnished cubicle at an ad agency on East 24th Street, for example, rents for $650 per month. Although the site is up and running, the official launch date isn’t for a few weeks still. As such, the pickings are slim in some locations such as San Francisco where the only listing in the area is a dated office in Oakland for $50 per day. Presumably as more people hear about the site and decide to rent out office space, there will be more options from which to choose.

iStopOver also has a service for travelers who are looking to save money on hotels. Business travelers who are feeling particularly adventurous can rent a room in someone’s home at a big discount. For instance, a room in a New York City apartment is listed at only $60 per night. The hosts, Natalia, Judy and Yolandi, even offer to show travelers a night on the town.