Standard commercial leases require a 3-year minimum agreement. And for many small businesses, that can seem like a lifelong commitment.
You don’t want to put your company in a detrimental obligation, but you need the space so you can continue growing. What can you do?
Well, luckily the commercial market recognized this need and offered a variety of choices for flexible office space leases. When you’re looking for this kind of space, evaluate your objectives and find the type of office that best fits your needs.
Pop-Up Retail Space
You know those Halloween tents that come into town a few weeks before the holiday and leave a few days after? That’s a pop-up retail space.
This kind of space works great for mobile art exhibits, beginning designers or small business that need to do market testing. Also, eCommerce stores that want an occasional brick-and-mortar option make excellent pop-up space users.
You’ll get very flexible terms and short lease agreements with this type of space. And rental rates fall significantly lower than traditional costs.
Executive Suites
These flexible office space leases come equipped with receptionists, an IT department, office managers and telephone operators. It will have easily customized space and offer the latest technology. While you have private areas for working, your company shares common areas and conference rooms with other tenants.
Over the years, landlords have created several variations to the typical executive suites model. Virtual office space charges tenants for the use of a professional address and telephone number, but they may only use the space on a limited basis each month. Co-working spaces feature the same concept as executive suites, but focus more on creative professionals that prefer collaborative environments.
You get tons of flexibility with these offices, with terms as short as just a week. It’s often significantly more expensive than traditional office space. But when you account for the benefits, it all evens out.
Sublease Agreements
A sublease provides the flexibility, benefits and opportunity for most businesses. Essentially, you partner with another company to share their lease with them. And if they decide to vacate the space, you’ll often get first rights to occupancy.
Sublease terms depend on the agreement between you and the sub-lessor. Generally, you’ll share common areas, basic office equipment and you may be able to use their furniture for free.
And if you’re quickly growing, you can come to an agreement where you take over the lease at the end of their terms. That kind of setup can make rapid growth at a startup much less stressful.
Ultimately, you want to find the type of place that works best with your goals, objectives and culture. When you understand that, you can find the perfect space to grow together as a company.
Which type of flexible office space leases would work best for your business?
