Finding a reasonably priced office or commercial space is always a hurdle that delays the launch of a business. Given the current price per square meter, buying is out of the question, and rents are skyrocketing in central or strategic locations. This has led to the rise of business centers, an alternative that is displacing traditional rentals. Furthermore, they offer services that a traditional company cannot afford.
The main obstacle hindering entrepreneurship in Spain is the fear of failure. Starting a business requires a significant initial investment and very high fixed costs. Acquiring offices, hiring specialized staff for administrative services, and registering the company are essential for any business. Therefore, strong financial backing is crucial.
However, there is an alternative to the traditional outlay of money: business centers. These are companies that provide other businesses with customized facilities, technological resources, and a wide range of professional services tailored to their needs. In this way, the investment is covered by the business center.
And all of this at a much lower price than you would pay if you hired those services on your own. It's also important to know that business center activities fall under the service sector, so no withholding tax is required for Personal Income Tax (IRPF).
Another important reason for the business owner is that they "don't have to worry about anything." They don't need to hire staff or manage utilities like water, gas, electricity, telephone, and internet. They don't have to invest in furniture, photocopiers, fax machines, or any other office supplies. So, while the center manages their office, the business owner focuses solely on running their business.
How they came about
Business centers emerged in the United States due to the high cost of renting office space in the economic heart of cities. Companies would relocate outside the city center and maintain a presence there.
In Spain, they didn't appear until the 1990s, as a consequence of the self-employment boom. From then on, business centers began to emerge in the cities with the greatest economic activity, mainly Madrid and Barcelona.
Fortunately for the sector, business centers are becoming increasingly established in Spain. The Spanish Association of Business Centers (ACN) lists approximately 250 business centers located throughout the country. Collectively, these companies provide 150.000 square meters of office space to around 15.000 clients.
In terms of business volume, the sector generates 63 million euros annually, and is a growing source of job creation, with 750 people employed.
The secret to their success:
versatility
The needs of a business owner who occasionally requires an office for meetings or interviews are very different from those of someone who needs a permanent location for their company. Business centers understand this and offer a flexible solution for each situation.
In this way, they allow businesses to save on the fixed costs associated with monthly investment in human resources and infrastructure. In return, they allow businesses to project an excellent corporate image to the outside world.
They achieve this by employing multilingual staff, utilizing advanced telecommunications systems, providing marketing and public relations services, offering consulting in various fields, and providing customized facilities. And given the wide range of service demands, the supply is equally diverse. In Spain, business centers range in size from 200 square meters, with a capacity of 10 to 20 offices, to those that reach or even exceed 10.000 square meters.
But contrary to what it might seem, the size of a business center is not necessarily related to the quality of its services. This is the opinion of Juan Nieto, manager of Zuricenter, a business center located in Madrid's Salamanca district, which boasts 400 square meters and 13 offices. "There's no competition with the large business centers," he explains. "Clients are increasingly seeking personalized services tailored to their needs, and in the event of a crisis, it would affect the large centers more," Nieto asserts. Nevertheless, this businessman believes the sector is thriving and growing steadily in Spain.
Other business centers, such as Trade Center, located in Sant Cugat del Vallès (Barcelona), instead focus on large facilities to accommodate the diverse needs of businesses. It boasts 10.000 square meters of space, of which 2.000 are dedicated to offices, 4.000 to parking, another 4.000 to retail spaces, 2.500 to industrial units, and the remainder to other activities.
According to Trade Center's director, Miguel Ángel Torras, his center is "a small service city where business owners can find solutions to any problem or question, from expanding their business abroad to applying for a bank loan tailored to their needs, or even taking out health insurance for their employees. To do so, they simply need to go up or down a floor."
Another very interesting aspect of business centers is the feedback loop that develops among their clients. For example, a lawyer who rents an office in a business center can, in turn, provide legal advice to the center's clients.
The only remaining barrier for the sector is cultural. As Lídice Valenzuela, manager of CIMA Business & Conference Centers, explains, "Many of our clients didn't really know what a business center was until they started working with us. In this sense, a further push is still needed to establish a business center culture in Spain."
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