When the business of providing this type of office space first grew up in the '60s and '70s, the term "executive suite" was by far the most commonly used. However, since the hotel industry also now uses the phrase "executive suite," the alternative term "business center" has come to be preferred. The former Executive Suite Association, an association of companies providing ready-to-use office space, is now the Office Business Center Association International.
The most common situations in which companies hire office business centers are: 1. When a large or medium-sized company is expanding into new territory, and 2. When a small or start-up company needs help with the staffing and amenities that will help them to sustain a period of rapid growth.
Part of the business center's appeal is that it offers both lease and space flexibility. It can be rented for as little as an hour or as long as a year, and most have flexible lease agreements which are extended by the week or month.
For example, your company might be considering opening a branch office in a new area. Since the territory is unfamiliar, it might make sense to start out in one or several executive suites, from which you can start to get the new branch off the ground. With more knowledge and experience of this new locale, you can then make more informed decisions about staffing and about the location for your permanent office headquarters.
Business centers are fully furnished. They almost always have a reception area, which is staffed by employees of the business center company. This reception area and the services of the receptionist might be shared with other companies. They also have conference rooms of various sizes, or you might rent one without access to a conference room if you don't anticipate that you will need one.
The office supplies your company needs are also typically provided and replenished as needed.
Another feature of most business centers is the kitchen, which several executives might share.