TechSpace operates facilities here as well as in Boston and NewYork City where it provides a flexible full-service officeenvironment with technology support through a Tier 1 data center.Flexible lease terms allow room for upsizing or downsizing asnecessary, including everything from workstation furniture,advanced voice and data telecommunications, IT infrastructure,reception services and office supplies. The approach is designed toprovide tenants with the capability to grow their businesseswithout making a long-term commitment to occupancy or a capitalinvestment in the space.

CEO Guy Pickrell of TechSpace tenant NationStaff says thelong-term commitments of traditional office space are reallydifficult for start-up companies like his, which has changed itsspace 10 times with TechSpace. "We would have been in some toughbinds if we didn't have the flexibility to change our size," saysPickrell, whose company offers executive search and consultingservices for the financial industry, with a focus on financialtechnology.

The TechSpace story reflects conditions that prevail throughoutthe office leasing market. A recent report on the Orange Countyoffice market by CB Richard Ellis points out that although leasingactivity continues at roughly the same number of deals, the averageoffice deal was approximately 30% smaller in the latest quarter.Office space users are operating with fewer workers, causingtenants to downsize and/or relocate to smaller quarters, the CBREreport says.