Miriam thank you for the awesome feedback you placed with this post. Who says you cant learn something new everyday 
I would like to ask you if you can give me a link to a post where google directly says or indirectly frowns upon use of virtual offices. This is the first time I have heard of it not being a viable option.
I take two examples into consideration and i would like to politely disagree with that and " only that " comment you made.
First there are a lot of office buildings that offer virtual offices with Suite # as box numbers, even UPS does that ( not saying ups is an option ) A Po. Box, well obviously we all know you cannot get listed with a po box address, but where i live in Los angeles and around my surrounding area a lot of people get a virtual office . ( i.e.: use of an office building facility, conference room for meetings, use of business services with dedicated phone lines, use of conference halls, and of course a mail box. ) So i would not think that google would not be in " favor " of someone conducting business in an environment such as that. Can you please explain how a business with a unique address can come under scrutiny? ( unless they specifically do something wrong ). I am not sure i understood that portion.
A lot of start up internet business's utilize this feature due to the extensive cost of getting an office and getting off the ground.
Just like actually getting an office in an office building, a virtual office will be just as fine, ( As long as business is being conducted in that facility or in the surrounding area ) Also, i am not condoning going and getting a virtual office in evert metropolitan city. Just does not make sense.
So that being said in Michaels case getting listed for a Major city in VERY CLOSE proximity, where he is conducting business, does make sense.
Second, i would have to take into consideration conducting business outside the city where you are located. ie: ( if you provide legal services or even if you are a contractor and your main business is outside the city you are located in then it would only be fair to get listed for the city you provide service to. Don't you agree.
If i am a user and i am searching for a contractor in the city of los angeles , i ( from a user stand point ) would like to see a good mix of contractors ), not only people located in my immediate zip code. Because we have to consider that major cities , like Austin , or Los angeles cover a big area on the map.
I hope i was able to clear up on my part what i meant by getting a virtual office and from this perspective I think it is only fair for Michael to properly get listed in the city he conducts business in.
This is not black nor a gray area subject, just straight facts based on the needs of a business.
Best wishes and Happy Holidays
Hampig M
CEO
BizDetox