What is a satellite office?

A satellite office, sometimes called a remote office or telework office, is a smaller, fully equipped addition to a company’s headquarters at another location. Networked with the headquarters through modern technology, it provides a collective workplace for small teams or entire departments. It can be a single office for one employee, double offices, coworking spaces and team offices or as an open-plan office it can be a workplace for hundreds of employees.

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Unlike branches and subsidiaries, satellite offices are generally not sales-driven but labour-market-driven. However, lack of space, gain in prestige, cost savings or a required boost in creativity can also make a satellite office the ideal complement. In this blog post I will introduce you to the most important reasons for a temporary or permanent satellite office.

Expansion and lack of space

When the actual company headquarters has become too small, many entrepreneurs think about moving. The consequences: Stress, relocation costs and problems due to poor accessibility for employees. With a satellite office this can be avoided to a large extent. Companies can thus expand without having to relocate their headquarters. For example, departments that are not required for daily meetings can move into the satellite office. For example, IT, accounting or sales can be outsourced without cutting off their connection to headquarters. A satellite office is also an excellent solution for project teams, as knowledge and creativity can be concentrated here, creating think tanks. As a regional presence, satellite offices are also ideally suited for opening up new markets at other locations.

Cost savings through a satellite office

If you outsource departments or teams without customer contact to a satellite office, this does not necessarily have to be located directly in metropolitan areas – this saves rental costs. Wage costs are another cost factor: opening a satellite office in a structurally weaker region with lower wage levels, where the necessary specialists live, can give you a decisive cost advantage over your competitors.

Even if you are planning a move with your company, a temporary satellite office can be a smart solution to explore the market in the desired location, find the ideal property, set up ready for work and already be established there.

Proximity to employees through satellite offices

The long way for commuters to their workplace is a common reason for layoffs or the desire to work in the home office, which often makes collaboration difficult. In comparison to the home office, a satellite office offers several advantages for employees. Firstly, they have direct contact with colleagues in their department or project, which enables better and more fruitful teamwork. Secondly, they have all the necessary facilities and infrastructure at their disposal. A satellite office close to the employees’ places of residence promotes cooperation, saves travel time and thus ensures a better quality of life. This also makes your company interesting for new specialists.

If your company moves with its headquarters, this is often a reason for employees to quit their jobs because they do not want to change their place of residence for various reasons. A satellite office near the old location helps to keep these skilled employees.

Another reason why a satellite office can be useful is the lack of skilled workers. A satellite office specifically opened where skilled personnel are available can be the decisive reason why employees choose to stay with your company.

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Satellite offices in the Business Center: Flexibility, networking and status

When renting a turnkey, fully equipped satellite office in a business centre, you have the option of expanding or reducing the size of the office at any time or converting it to a different office concept. In addition, you save the purchase costs of office furniture and equipment. This flexibility is a great advantage, especially if it is not yet possible to foresee how your company’s expansion will develop in the coming years.

Even if you are planning a move with your company, a temporary satellite office can be an intelligent solution for exploring the market at the desired location, finding the ideal property, setting it up ready for work and already establishing yourself there.

A prestigious address in a sought-after area of a metropolitan area for your satellite office, as is the case with business centres, increases the visibility and reputation of your company and is worth its weight in gold as an address on your business card.

Last but not least, the proximity to other companies in such a complex is often the ideal networking opportunity and a source of inspiration for your employees. Because even if the satellite office is only for employees of your company, contact with other companies is not missing.

I hope that after reading my blog article you were able to decide for yourself whether a satellite office is the right solution for you and your company. Write to me if you have further questions about the satellite office or any other office concept. In February, my blog will focus on the advantages of an office service.

I wish you every success!


With best regards
Christian Schmidt

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