With an office space usually making up about 20% of the expenses of a company (ranking below wages), property decisions that are made today will be key to their accomplishment in the times ahead. For a long time, conservative landlords have looked to attach businesses to limiting long-standing leases. It is a lesson that numerous businesses found out regarding their expenditure during the recession of 2010.
However, the wave happens to be changing and stretchy agreement terms are turning increasingly prevalent. In the section below, we are going to discuss some key reasons behind businesses increasingly opting for the serviced office space option.
2021 is still a long way to go. On the other hand, 5 years is the standard period of time for which businesses must commit to when it comes to a conventional workplace space.
Is it possible for anyone to confidently foresee what their business preferences are going to be be in the year of 2021?
What is your head-count going to be?
What are the fresh markets that will have initiated or shut down?
Businesses that are keen on mitigating risk can make the switch to shorter workplace contract terms by registering with any serviced office space provider.
Flow of Cash and Space Efficiency
Conservative tenants are necessitated to shell out the rent sum quarterly beforehand with their serviced counterparts ‘Paying as they go’ every month. Serviced space also comes completely equipped and furnished and this means that very modest capital expenses are necessary.
The recession of 2010 saw conservative tenants having to downsize their head-count and they had no option but to pay for space that they did not use any more. Serviced agreements offer a greater amount of flexibility for businesses to add to or cut back on their space requirements for matching their budding business requirements.
Speed to Marketplace and Reduced Staffing Expenditures
Theoretically, you are free to sign any serviced office contract and move-in on the day of the signing. Offices are totally furnished with ‘Plug & Play’ broadband & telecoms access at every single workstation. There aren’t any prolonged lead times having to wait till the suppliers install/activate their services. Your members of staff are free to move in and get down to business straight away.
Support personnel, which include a panel of receptionists, are part of the fee of a serviced workplace. These highly important but frequently pricey resources are shared uniformly amongst every one of clients inside the building generating greater cost efficiencies
There are more reasons besides the ones we have discussed above.