The Traditional Lease vs The Flexible Workspace
- Credit: Archant
Flexible office space is not just for start-ups. In fact, it offers big benefits for corporate clients looking for a professional yet agile set-up.
Leasing commercial property is a commitment made on uncertain terms. As much as a company can forecast how the next year will play out, business can easily change.
This creates a challenge for corporate real-estate directors (CREs). When sourcing suitable workspace for a client, CREs are aware that, 12 months after signing a lease, their situation may have evolved dramatically. Economic fluctuations and staff changes could make a company keen to downsize or increase their office space accordingly. But, if the client is locked in to a ten-year lease, there's not much room for manoeuvre.
More often than not, conventional office leases demand long-term contracts that don't take the changing nature of a company's situation into account. For this reason, CREs are increasingly turning to flexible workspace as a solution.
Flexspace offers a professional environment for corporations
For many, flexible office space means co-working spaces and communal areas thrumming with startups. While this is certainly one aspect of flexspace -popular with freelancers and fledgling businesses - the majority of leading flexible workspace brands also offer private offices and meeting rooms, creating the discreet environment that a corporation often requires.
IWG, the world's leading provider of flexible workspace, owns an array of brands that cater to different working styles and company cultures. And in each case, locations can be refitted to suit a corporation's requirements.
- 1 Mother pays tribute to “much-loved” son who died near Fen Drayton
- 2 One arrest and cars seized on busy day for cops
- 3 Karl Brockett writes about the history of St Ives
- 4 Cambridgeshire's Enhanced Area Status extended amid Covid surge in schools
- 5 House fire that killed two children will not have further electrical checks
- 6 Robber attempts to steal scratch card and alcohol from convenience store
- 7 Hinchingbrooke Hospital get share of £4.5m to 'improve care'
- 8 'He is our hero' - D-day veteran Wilf, 102, gets surprise visit
- 9 Man who died in St Neots crash is named
- 10 Items from Lidl and Sainsbury's recalled over health and safety concerns
Flexspace can be adapted to suit a client's needs (rather than the other way around)
Compared to conventional office leases, flexspace offers the option of shorter leases, or even lease options that allow a company to exercise a more ad-hoc arrangement. Rather than a one-size-fits-all solution, flexspace offers a more cost-efficient, bespoke way of leasing office space.
Flexspace may help to balance the books
This year, the introduction of accounting standard IFRS 16 means that office-lease obligations are now classed as liabilities. However, the good news - with some conditions - is that office leases of 12 months or less are exempt. Choosing flexspace, which offers the option of shorter leases, could boost your company's bottom line.
Flexspace boosts productivity and talent retention
Aesthetically pleasing and designed with productivity in mind, the leading flexspace brands offer modern, high-quality workspace - worn-out, traditional office spaces simply don't compare.
According to IWG's 2019 Global Workspace Survey, 77% of respondents felt that a flexible work set-up was vital for retaining their company's top talent. Tied to this is the fact that flexible offices are becoming more ubiquitous outside of city centres, which means that staff are often able to cut down their commutes yet work in a professional environment that's also close to home.
In summary, flexible workspace offers all the benefits of traditional offices but without lengthy lease requirements. Improved agility, cost efficiencies and a desirable working environment are just as important to corporations as they are to smaller businesses - and all of these qualities are at the heart of the flexspace offering. CREs looking to exceed a client's expectations may want to consider it.
Find out more about the benefits of flexspace.