When you find the right office space for lease, it is tempting to negotiate a long-term lease. Yet is this really in your best interest? Critics of short-term leases have claimed as long ago as 2009 that this practice was on its way out the door. The New York Observer ran a piece that spoke of a “looming obsolescence,” which observers attributed to business owners’ willingness to once again think long-term.
Asserting that short-tem leasing was a clear sign of a clouded vision, the experts celebrated the companies that decided to commit to a decade-long stay at a variety of prominent office buildings. Fast forward to 2013, and – to paraphrase Mark Twain – it becomes clear that rumors of short-term leasing’s demise have indeed been greatly exaggerated.
In fact, business insiders now recognize that thinking short-term can actually cut costs and position your business for future growth.
- Be flexible. Are you in expansion talks? A short-term office lease lets you be as nimble as you need if a quick physical relocation or shifts of your business’s emphasis are in your future. Rather than committing to a long-term office lease, you have the option of renewing the lease at some point in the near future or walking away to grow your company. If you are locked in a long-term lease, this move could be so costly that it might make it impossible to turn your plans into reality.
- Test-drive the size. Do 1,200 square feet meet your needs? Do 2,300 square feet sound like a lot today but maybe meet your needs perfectly in a month or two? When you choose an office space for lease with an eye on trying out the size and the amenities, you have the option of upgrading or downsizing to meet your realistic needs and budget limitations. If you made a mistake in your initial estimate, you can fix it in a few short months.
- Analyze the expenses. There are a number of short-term office lease buildings that feature a concierge and on-site business services. These costs are usually rolled into the leasing price. Taking advantage of these amenities has the potential of saving you money in the long run, particularly if you are paying staff members or contractors to provide these services.
Of course, there are also plenty of other reasons to consider renting an office space with a short-term lease in mind. If you are currently experiencing funding restrictions, are going through a bout of down-sizing or are in a recovery after a major shakeup of your industry or company, a short-term lease gives you the chance to get settled and plan for your business’s future. On the other side, if rental rates are on the up-swing, going short term will cost you more in the long run. At OfficeFinder, LLC, our office tenant reps make it their business to ensure that your company finds the perfect office space and leasing terms. Contact us today to discuss your business’s needs.
By: James OsgoodAgile Workplace , Lease Negotiations , Office Leasing Tips , Office Rental , Office Space