What Is a Virtual Office?
Before diving into the origin story and the key players shaping the virtual office industry, it’s important to understand what we mean by a “virtual office.”
A virtual office is a blend of three essential elements: people, place, and technology. These components come together to provide remote businesses with:
- A commercial business address
- Mail handling and forwarding
- Business phone services (often with VoIP systems)
- Live Receptionists and call answering
- Meeting rooms and occasional access to coworking space
Essentially, a virtual office lets businesses operate professionally and flexibly without paying for full-time office space. Today, virtual offices are part of the broader flexible workspace industry, which also includes coworking spaces and serviced offices.
Virtual Office Origins: A Timeline of Innovation
1960s–1970s: Laying the Foundation
- 1962 – OmniOffices Group is founded, considered the first known serviced office provider.
- 1966 – Paul Fegen launches Fegen Lawsuites, renting out executive suites to fellow lawyers. Services include telephone answering, photocopying, and conference rooms—precursors to today’s virtual office services.
- 1973 – Fegen’s firm offers an “off-site tenant program” for professionals needing a prestigious address and call services without being physically present.
1980s: The Rise of Enabling Technologies
- 1981 – The Osborne 1, the first portable computer, is released, marking a step toward location-independent work.
- 1982 – ARPANET adopts TCP/IP, birthing the modern Internet.
- 1982 – Journalist John Markoff coins the phrase “virtual office” in InfoWorld, foreseeing a future where offices are no longer geographically bound.
- 1983 – Chris Kern further defines “virtual office” in American Way, describing business done on-the-go via computers and telecommunications.
- 1989 – The World Wide Web is created by Tim Berners-Lee.
- 1989 – Alon Cohen co-founds VocalTec Communications, which pioneers the audio for VoIP—an essential virtual office tool.
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1990s: Going Digital
- 1991 – The World Wide Web becomes publicly available.
- 1992 – Richard Nissen trademarks “The Virtual Office” in the UK, detailing services like telephone rerouting and mail forwarding.
- 1992 – Barrister Executive Suites begins offering “business identity packages,” bundling mail services, receptionist support, and conference rooms.
- 1994 – Ralph Gregory launches Virtual Office Inc. and later Intelligent Office, one of the first commercial virtual office companies in the U.S.
- 1998 – Regus, founded by Mark Dixon in 1989, introduces its “Link” virtual office service, offering a premium address and call handling without needing a physical presence.
2000s: Wholesaling and Global Growth
- 2006 – Frank Cottle pioneers virtual office wholesaling, laying the foundation for firms like Davinci Virtual, Cloud Virtual, and Alliance Virtual Offices (AVO).
- 2006 – Bill Grodnik launches Davinci Virtual Offices, the first to wholesale virtual offices at scale. Today, Davinci operates in over 30 countries with more than 1,000 locations.
- 2007 – Alliance Virtual Offices (originally ABCN Virtual) is launched by Frank Cottle, providing a complete suite of virtual services, including:
- Virtual office plans
- Live receptionist services
- Mail handling
- Meeting rooms
- Business phone systems
- Coworking and notary services
2010s: Competitive Expansion
- 2010 – Opus Virtual Offices enters the market, offering standardized packages at consistent pricing. Unlike others, Opus partners with mail centers rather than coworking operators, helping them keep prices low.
Throughout the 2010s, virtual offices became increasingly mainstream—driven by digital nomads, the gig economy, and the rise of remote work.
The Industry’s Major Players Today
While new providers continue to emerge, a few long-standing companies dominate the landscape:
Regus (IWG)
- Founded: 1989
- Known for: Premium locations and custom plans with access to physical offices
- Global presence with thousands of flexible office locations
Davinci Virtual Office Solutions
- Founded: 2006
- Known for: Wide range of virtual services, live receptionists, and flexible pricing
- Operates in over 30 countries with 1,000+ locations
Alliance Virtual Offices
- Founded: 2007 (roots trace back earlier via ABCN)
- Known for: Global virtual office network, live receptionists, and integrated tech
- 800+ locations in 40 countries
- Offers access to coworking, mail handling, phone reception, and scheduling software
Why Virtual Offices Continue to Thrive
Despite economic uncertainty, the demand for virtual offices is rising. Here’s why:
- Affordability: Starting at around $50/month, virtual offices are cost-effective.
- Flexibility: Services can be scaled up or down based on business needs.
- Credibility: A commercial address boosts brand reputation and legitimacy.
- Technology-driven: VoIP phones, cloud storage, and scheduling apps make remote work seamless.
And thanks to modern platforms, businesses can manage bookings, calls, and client communications across time zones with ease.
Looking Ahead: A Young Industry with Global Potential
The virtual office industry is still relatively young, with its roots tracing back to the 1960s. Yet in a world of flexible work and borderless business, its relevance has never been greater.
As the gig economy grows and businesses seek leaner models, virtual offices offer a smart, scalable foundation.
So whether you’re a solo entrepreneur, a digital nomad, or a global enterprise—there’s a virtual office setup designed to meet your needs.
