KING OF PRUSSIA - Greg Levinson can't commit, and why should he?  As CEO of Schooner Investment Group, the last thing he wants to do is lock himself into a five-year lease.

"The nature of our business is that we increase or decrease in size" depending on economic trends and other outside factors beyond his control, Levinson said.

With his employee base fluctuating widely during the recession, Levinson has moved from 5,000 square feet of traditional office space into flexible space offered by American Executive Centers.  He has access to a receptionist and support staff, and can expand or reduce his office usage depending on his needs, with no long-term commitment.

"This allows us to focus on our core business," he said.  The downturn in the economy has meant an upturn for American Executive Centers, said Mike Howard who took over as president of the concern in 2007 after a stint as vice president of leasing.

Layoffs for example have helped to drive new clientele from among the self-employed.

"All the people who are going out on their own, who like the economies of working from home but who miss the people, the camaraderie, the image and also the support staff that comes with having a private office, they find this an attractive option," Howard said.

The company operates seven locations in the Philadelphia area, comprising about 620 offices with rents ranging from $800 to $1,100.  In addition to physical space, American Executive Centers also offers bookkeeping support, information-technology help, administrative assistance and other functions.

Lately, the company has brought two paralegals on board to catch hold of the windfall from another aspect of the slowdown; the lawyers are on the loose.

"We are seeing a big influx of attorneys," Howard said.  "There are a lot of attorneys having a difficult time right now, and they need to get outside of the traditional office."  In some cases solo practitioners are looking to trim expenses.  Bigger firms are opting in, too, in order to have flexibility as their needs change in changing times.

To capture this audience the company recently created a sub-brand, "Legal Facilities at AEC," marketing space and services to lawyers through legal-industry expos and an aggressive program of Google pay-per-clicks. 

While American Executive Centers initially made its name as a straight real estate player, a place to go for as-needed space, lately the company has been carving out a new niche.  Its "virtual office" service, though available for several years, has lately been drawing increasing attention within the business community.

About half of the company's tenants now make use of some virtual office offerings.  In addition to the aforementioned support services, the virtual office product includes a business address and phone number answered with the tenant's company name by a team of receptionists.  AEC also provides access to a database developed in house, which allows the receptionist to see customers' information at a glance, so that incoming calls can be handled efficiently.

While the Web has been the driving force - about 80 percent of new business comes through the Internet - word of mouth has become increasingly important, Howard said.

"As people are working from home they feel isolated - and they are isolated - so people who didn't network before are now doing so," he said.  As a result, networking through organizations such as Business Clubs America has proven a solid means for American Executive Centers to court new clientele.

The company also hosts its own networking events to bring together present and future tenants.  No one likes to get tossed into a room full of strangers, Howard said, so these more intimate gatherings act as a means to generate comfort and confidence.

"We try to make as many introductions as possible, and we rely on them to introduce us," he said.

Then there is the upside.  Even as the region struggles to maintain momentum in the midst of the recession, Howard said, many companies still are thriving.  That's good for his business, which relies to a great degree on businesses whose headcount is in flux.

"A lot of companies that are expanding into the area don't want the noose of a five-year lease," he said.  "They don't know what is coming, they are not sure.  They may have three people working there now but even if they are growing, they don't want to commit to have 18 people there in three years.  So they need to do something in the meantime.

"People still want to do business, but they are just a little bit nervous about it, and we are a very low-threat solution."