As more and more companies look to bring employees back into the office, one of the most important decisions is where to base your office.
The right office space can increase productivity and boost employee morale. This can also be a daunting task if you are not familiar with the various options available to you. Here’s a crash course on how to find the right office space for your business.
A traditional lease is a long-term contract between a tenant and a landlord. A traditional lease typically requires a minimum of three years, and the tenant is responsible for all operating costs such as rent, utilities, maintenance and insurance. One of the main advantages of a traditional lease is that it provides stability and control over office space. You can customize the space for specific needs. However, traditional leases can be expensive and require significant CAPEX up front.
A sublease is an agreement between a lessee and a third party sublessee. The subtenant leases the office space from the tenant responsible for the primary lease agreement with the landlord.
Subleasing is best suited for businesses that require flexibility and are not yet ready to commit to a traditional long-term lease. However, subletting can be risky, you do not have a direct relationship with the landlord, which can create complications in the event of disputes or unexpected changes to the lease term.
Additionally, subleasing may not include all operational costs, such as IT infrastructure. We’ve seen this happen with one of our clients who decided to sublease and only later realized that hundreds of thousands of dollars in additional costs they weren’t aware of had to be paid. Make sure you understand before you sign anything all from the costs involved, not just the costs that get you in the front door.
Flexible workspace, also called flexible space, is an umbrella term for several types of workspaces, including workspaces, hot desks, managed offices, serviced offices, and virtual offices.
Flex space offerings are best suited to changing business goals that require flexibility and agility. It can also be useful for a project or spillover area if you have an existing long-term lease.
Flex space offerings allow businesses to lease office space for shorter periods, typically a few months to a year, without the upfront costs and commitments associated with traditional leases. While each flexible workspace may look a little different, most share the basic elements of open floor plans, quiet spaces, shared utilities, and adaptable workspaces like standing desks, phone booths, or coffee bars.
In addition, flex spaces often provide opportunities for networking and collaboration with other businesses in the same area. There are also many other benefits that may not always be highlighted, such as events that can upskill your employees, lunch and learn sessions and monthly drinks.
When considering office space options, it is important to consider and understand the costs, duration and benefits of each option before making your decision. Ultimately, the right office space for your business will depend on your specific needs.
Traditional leases, subleases, and flex spaces each offer unique advantages and disadvantages that businesses must consider. By understanding the available office space options, you can make an informed decision that will help your business grow.
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