What is a Satellite Office and How Does One Benefit Your Company?

Location is no small question for a company. You’re looking for the best compromise between cost, convenience, and business prospects. But these aren’t one-time considerations; companies continue to face the location question as they grow and evolve. 

Whether your company is a startup with a small, dedicated team or a large, established corporation, where you’re headquartered doesn’t have to limit where your company operates. And today, it’s easier than ever to run a company without being centralized in a single place.

A satellite office—a branch of a larger company physically separate from the organization’s main office—allows a company to physically stake more than one location. 

Though they range in size, satellite offices serve as extensions of bigger offices or report to a company’s headquarters.

Wondering if or when a company should invest in a secondary location?

Here are seven reasons why a satellite office may work for you:


1. Space when it’s needed

As your company grows, there naturally comes a time when you simply need more space. Rather than transferring your entire operation to a new site, opening a satellite office allows you to retain the benefits of your existing space, whether that be cost, location, or simply the convenience of staying where you are.

Overflow space also comes in handy during transitions between long-term offices. To overcome long lead times on new leases or drawn out build-outs, many companies use temporary space in shared office environments to bridge the gap. You don’t have to pause your company’s growth to wait for walls, floors, desks, and chairs.


2. Ability to test new markets

By setting up shop in a new location, you can start laying the groundwork for expansion into a fresh market. A physical presence affords you direct experience with the local culture and allows you to test your product or service in a market over the course of months or years before expanding, closing, or consolidating offices.


3. Reduced costs through optimizing location by team

Perhaps your company needs to exist in a location central to your customer base or it benefits by maintaining a presence in a high-traffic area, but rents there run high. Consider which departments depend on this geographical element to do their work versus those that could function offsite. For example, even if your business involves in-person services or thrives on hosting business meetings downtown, you may be able to accommodate your accounting or HR staff in a separate office that costs you less.


4. Status by address

Just as you can create an outpost away from a high-cost location to reduce your company’s expenses, a satellite office can also gain your company access to a high status address without the price tag of a total migration. Whether you’re looking for the credibility that comes with name recognition or an attractive space to host your most important meetings, a satellite office allows you to do so without going all-in.


5. Proximity to partners or investors

They say you are the company you keep. In business, this wisdom means situating yourself in proximity to the entities you want to be in business with. After all, business connections are people connections. Ask yourself: Who do you want to run into while grabbing your morning coffee? Who do you want to ride the elevator with? 


6. You’re experimenting

With the rising focus on corporate innovation, a growing number of large companies are looking to partner with game-changing startups. Establishing a satellite office in a hub of startup activity, such as a coworking space, sets up your company to jumpstart those collaborations and think outside the box. You’ll be better positioned to network organically, stay in the center of industry trends, and promote your products, services, or events to a receptive community.


7. Attracting the right talent

The location of your office inevitably impacts who is interested in working at your company. It’s worth taking note of job seekers’ preferences so you can cater your satellite office to the talent you hope to attract. For example, do your ideal candidates prefer urban over suburban workplaces? Is your office accessible by bike or public transit?

Consider other advantages a potential neighborhood provides, such as food, gyms, or outdoor space. All of these factors can be leveraged to draw in—and keep—the right talent for your company. 


Looking for satellite space for your company?