Modern business dynamics with a greater emphasis on hybrid working and work-life balance have upended the traditional office space paradigm. Buying traditional office space has several shortcomings, including exorbitant upfront costs, lengthy leases, and the need for ongoing investment in maintenance and repairs. For startup owners and freelancers, this translates to financial and expansion constraints. […]
Modern business dynamics with a greater emphasis on hybrid working and work-life balance have upended the traditional office space paradigm. Buying traditional office space has several shortcomings, including exorbitant upfront costs, lengthy leases, and the need for ongoing investment in maintenance and repairs. For startup owners and freelancers, this translates to financial and expansion constraints.
Rented office spaces are a viable alternative. But while renting an office space can overcome many of the shortcomings of buying, such as a lower upfront cost and a flexible lease, it may also present some drawbacks, like a lack of control over the property.
To help you make an informed choice, this article examines the pros and cons of rented office spaces in detail.
A rented office space is one which you rent for a specific period. It is provided by a third-party service provider. It differs from a traditional office space in the following aspects:
Minimum Time Requirement: A rented office space can be booked for as little as a few hours, whereas space in a traditional office building typically has a lock-in period of several years (typically 5-10 years).
Minimum Space Requirement: In a coworking space (a type of rented office space), you can rent space as per your requirement (from a few desks to a floor or more). Traditional office spaces are typically leased based on a minimum square footage requirement.
Management: Rented office spaces are entirely managed by a third-party service provider. This includes security, cleaning, reception, IT services, and more. A business leasing a traditional office space needs to invest and be involved in the day-to-day operations of the office.
Furnishing: Rented office spaces are usually fully furnished and ready to use. With traditional office spaces, this becomes your responsibility, and office operations cannot commence until the furnishing is completed.
The benefits of a rented office space include:
Renting office space requires significantly less upfront costs compared to buying or leasing traditional office space. With rented office spaces, you do not need to invest in furnishing and day-to-day management. This allows companies to have more working capital, which can be utilised for business expansion.
Letting terms of rented office spaces are flexible, allowing businesses to scale their office space up or down without the hassle and expense of frequently changing locations.
In a rented office space, the third-party service provider takes care of all day-to-day operations and maintenance, and your team can focus on activities aimed at growing your business.
Location can make or break a business. If you’re a freelancer or startup owner, you want to be in the prime business locations to network and grow your business further. Traditional office spaces in such areas are usually not readily available and are expensive.
By renting office spaces in these locations, you can reap the same benefits at a fraction of the cost.
Rented office spaces are professional melting pots where several businesses work under the same roof. In such a setting, you can network, collaborate, and share your expertise. Thus expanding your professional network.
A chance meeting at the coffee machine, brainstorming in the breakout spaces, or an encounter in the parking lot all have the potential for new business or future collaborations.
Here are some cons of a rented office space:
With several people working in the same space, privacy can be compromised, and productivity can be impacted. However, startups seeking in-depth, productive work can rent closed, private office spaces with similar pros as above.
With rented office spaces, you are at the mercy of the third-party service provider of your space and have little control over changing things. For example, if your rented office space has poor lighting or low internet speed, you might have to wait for the service provider to mend things or move to a better-managed space.
Due to short lease terms, a rented office space may not be able to accommodate specific signage for your business brand.
If you’re a startup owner or a freelance professional, a rented office space by Garden Office Bermondsey is perfect for you.
We offer distinctive, fully furnished, and serviced private and coworking office spaces just five minutes from London Bridge, complete with high-speed Wi-Fi and other essential amenities. Our office spaces are specifically designed to meet the unique requirements of startups, freelancers, and mid-sized teams.
Are you ready to take your startup or business off the ground? Join a thriving ensemble of entrepreneurs and freelance professionals at Garden Office Bermondsey’s fully managed offices in London. To know more about our available units, visit Garden Office Bermondsey today!
