The pandemic has exposed something that a lot of businesses and employees have already noticed. Many of today's traditional offices aren't fit for purpose.
Here's just a few reasons why going for a traditional lease of for example 5 or 10 years usually isn't worth it. Most of these relate to business agility–being able to scale up or down your office size in days or weeks rather than months and years:
- Growth forecasts–particularly for startups and scaleups but for other types of business too–are usually not as predictable as the growth plan makes them seem. Whether you grow significantly more or significantly less than you intended, it makes sense to be able to keep your office space lean at every moment of your journey. Otherwise you spend a long time with underutilized or unused space.
- Black swan events: Brexit, Covid-19, the climate crisis, fake news, political and social unrest–adapting is becoming increasingly important.
- A long lease requires a large investment/capital upfront.
- It's fixed. You're tied into the lease as a large liability until the term ends.
- You may need to obtain permits and licenses.
- There are initial costs to starting up the office / buildout costs.
- You have to sort out maintenance and the staff costs associated with that.
What's the alternative? Here's a list of other models for office space post-covid-19, or use upmo.com to search for flex options that don't tie you into a long lease. You can also book a free zoom call with us to get insights into how the office space industry works.