Traditional office leases are beginning to fall by the wayside. The problem is that many businesses, including start-ups and large companies, require increasing flexibility. They’re looking for workspaces that come without a lot of hassles and offices that provide the flexibility their employees need and want. Businesses go through many changes, and for this reason, they require more flexible office spaces.
In this article, we’ll compare the differences between a traditional office lease and a flexible workspace. We’ll also let you know which type of office more businesses are choosing!
What is a Traditional Office Lease?
The traditional office lease is one that is based on renting office space by the square foot. This means the larger the office, the more expensive the rent will be. This type of lease also makes the tenant responsible for all expenses in the office, including utilities, insurance, Internet connections, and more. In addition, the occupier is responsible for managing the property and those who work there.
The lease for a traditional office usually means renting the space for a long period. The most common fixed rental terms are somewhere between three and ten years. When the term is over, the tenant must carry out all repairs to the property. If they’ve rented an entire building, this means all outside repairs would also have to be done. That’s quite expensive.
A traditional office lease is best for those businesses that prefer to stay in one place for years. This type of lease can work out well for them. However, this type of lease does not provide the flexibility that many businesses require today. Getting out of the lease can be almost impossible if the business suddenly changes (if the business needs a larger space or needs to downsize, for instance).
Here are some of the downsides that come with a traditional office lease:
- The business must pay for all furniture, equipment, and fittings, which can be quite expensive.
- Finalising the lease can be time-consuming and mean plenty of legal fees.
- The business must pay for all expenses (including utilities, property management, and more)
- The company is also responsible for all service contracts for telephone, cleaning, and more.
- Flexibility is not included – if your company experiences a major change, it’s almost impossible to get out of this type of lease unless a large penalty fee is charged for breaking the lease.
What is a Flexible Workspace?
On the other hand, flexible workspaces are offices that provide much more flexibility than a traditional office lease. The flexibility usually starts with the lease. Some business centres may rent out offices on a short-term or long-term basis. This may be for one month, a year, or even more. This provides a company with the flexibility they need to scale up or down as needed, even while staying in the same office building.
Next, flexibility can also be seen in the rent for flexible workspaces. Here, the rent is usually one all-inclusive monthly fee, which covers everything the company needs to run. This means the business only has to remember to pay one bill each month rather than several. What’s more, their rent covers all utilities, Internet connections, telephony services, management, cleaning, and more.
Plus, the all-inclusive fee covers valuable amenities, which may include all office furniture & equipment, access to shared kitchen & WC facilities, onsite gyms & showers, breakout spaces, cafes/restaurants, and much more.
Benefits Offered by a Flexible Workspace
There are plenty of benefits that come with flexible office space, including:
With changing economic and political climates, it’s sometimes difficult to know what your business will require in a year, let alone five years. For this very reason, many companies are choosing more flexible workspaces. With the future so unpredictable, businesses need the flexibility to change as required if they want to survive. This is the very reason many choose more flexible workspaces.
Making a move into a flexible workspace is also easier and faster. If the company only needs the space for a month, that’s not a problem. They may be waiting on another office and need a place to “live” temporarily while their workspace is readied. Move-in today and move out again in a month or two! What could be more flexible than that?
Flexible office spaces are also great for solopreneurs who may only need a hot desk on a part-time basis. The amount of flexibility that comes with this type of workspace is simply endless.
Focus on the Business
Many business centres offer serviced offices. These are office spaces that come with some great perks. This may include reception/welcoming services. What’s more, the reception team may also work as backups when needed. They can help with some business tasks to help when things are busy, for instance.
Flexible workspaces also include those great amenities we mentioned earlier. Remember they usually include all the office furniture & equipment, Internet & telephone services, access to meeting rooms, and more! All this is included in the one monthly fee!
Not only that, but the business centre management takes care of everything else. When something breaks, the Internet connectivity is lost, maintenance, cleaning, and more, the management takes care of this. It means the business owner doesn’t have to deal with these pesky problems. Instead, they can focus on running the business.
Attract & Retain Top Talent
Another perk that’s often overlooked with flexible office space is attracting & retaining top talent. That’s a huge concern for most businesses these days. But how can a flexible workspace help?
The benefits are in the type of office space chosen. The design, comfort, and well-being of employees are the key. Employees these days need and want a workspace that is airy, filled with natural light, excellent ventilation, relaxing breakout spaces, and more. This can all be found in a flexible office space.
Depending on the type of business you have, a flexible workspace may be the better choice. Your company will have more flexibility during unpredictable times. And a flexible office can save you money in the long run, whether the space is rented for a short time or a longer-term.
Choosing the right workspace for your business is essential. The right place will offer everything you and your employees need to stay focused and productive!