Signing an office lease can be a daunting prospect for startup companies these days. Indeed, taking on a conventionally leased office space is a long-term commitment so organizations need to be sure they are making the right choice before they decide to put pen to paper.
However, it is a fact that many start-ups find sourcing suitable office space to be a difficult task under a conventional lease agreement. This is because offices rented in the traditional manner often cost tenants more than they initially bargain on, with things like re-fitting layouts and installing furniture and IT infrastructure making significant dents in company budgets.
Fortunately, conventional office leases aren’t the only options available to UK start-ups nowadays. Indeed, many more fledgling companies are now opting for serviced offices as these innovative leasing solutions are able to provide occupational tenants with much more flexibility as well as significantly lower costs.
Flexible Tenancy Agreements:
One of the main differences between a conventional office lease and a serviced office solution is the length of rental agreements available. Most traditional commercial rental agreements require tenants to sign a lease for between five to ten years. However, this can be a very risky decision for companies in their start-up phases to make as committing a business to one premises for a long period of time inevitably reduces their ability to be flexible.
Use & Purpose:
One of the most significant downsides of a conventional office lease is that it can cause a company to pay for space that they may not even use. For example, conducting the odd interview or video conference in a meeting room rarely justifies the need to have it when it stands empty 99 per cent of the time. A serviced office on the other hand can provide meeting rooms and conference areas at discounted prices within the same premises or nearby. This can help with budget constraints and allows companies to maximize the space they’re renting.
Advantageous Amenities & Beneficial Bonuses:
Another great advantage of serviced office solutions is that they give companies the opportunity to take advantage of amenities that a conventional office lease may not be able to provide. Indeed, this type of lease enables start-ups to take advantage of a range of other services, such as cleaning, security, reception, kitchen facilities, catering and mail services. Whilst most SMEs would not find it viable to set these supplemental facilities up independently, they can take advantage of them through a serviced office lease as the costs are shared throughout the building. In addition, this arrangement also saves companies money on their staff training costs as many serviced office providers staff their buildings with fully trained employees who are accredited by the Institute of Customer Service (ICS).
With all this in mind, it really is clear to see why so many start-ups these days consider flexible serviced office solutions to be better options than conventional lease agreements.