Choosing office space involves more than finding the right location and square footage. The terms of the agreement should match the way your business works.
The real decision for many businesses isn’t just where they’re going to be based (though obviously that is important) but whether a flexible office arrangement or a traditional longer term lease makes more sense.
These two options each have benefits and suit very different priorities. While one tends to favour agile businesses looking to avoid expensive upfront commitments, the other offers greater control and longer-term value for firms that have a consistent business model.
This blog compares flexible office space vs long-term lease in practical terms and explains how to make the right decision based on growth plans, operational capacity, and your risk appetite.
At its most basic, flexible office space is designed to give businesses the flexibility to move. Agreements for these spaces are often shorter, and the turnaround time from interest to agreement is often much quicker. These agreements usually include additional amenities such as Wi-Fi and roll them all into one monthly cost.
Here at The Base, we offer private serviced offices that come with the kind of digital infrastructure you can look forward to as well as concierge services, all in contracts that can range from 12 to 36 months.
Traditional leases are more fixed and involve businesses agreeing to multi-year terms. They also take on greater responsibility for the fit-out of the office as well as the day-to-day management of it. Paying for utilities and maintenance also typically falls to the business rather than the building owner.
The difference is the balance between control and commitment on one side, and flexibility and convenience on the other.
Arguably, one of the biggest differences in flexible office space vs long-term lease is the level of commitment involved for a business. Flexible space tends to reduce risk because businesses aren’t locking themselves into a long arrangement and have the freedom to relocate at relatively short notice. This sort of freedom is well-liked by those exciting start-ups who simply don’t know what the next few years will look like in terms of headcount or shifting priorities. Long-term leases suit businesses that have a predictable future and are more comfortable with fixed commitments.
Cost is another major factor, but it’s something that needs to be looked at properly rather than just comparing the headline numbers. It’s a factor that includes lots of nuances. Flexible office space often comes with a more predictable monthly cost. Think of it like a subscription for a space. For one fee, you get fully serviced office space with wifi, cleaning services, and access to shared amenities. Traditional leases can look more cost-efficient over several years, but often come with additional fit-out and utility costs. The true cost, then, can be far, far higher than the initial headline price suggests.
Newer businesses that may grow or shrink in headcount often prefer the flexibility of the sort of office space found at The Base. Rigid leases can become restrictive for them, especially if team sizes change regularly. Flexible workspace gives them more room to grow without overcommitting too early. Long-term leases can work well for businesses with an established team or a clear idea of how their space requirements will evolve.
Flexible offices tend to save operational time, too, with start-ups and SMEs not having to worry about fit-outs or installing certain infrastructure. With a long-term lease, the business may need to spend more time dealing with the setup of the space so that it’s up and running, which is often fine for those enterprise firms that have the capacity to do so. In a flexible model, the burden of office upkeep sits with the provider, which gives businesses the breathing room to focus on their own company.
A flexible office is often the better option for businesses that have:
For certain firms, a long-term commitment may be better if the business:
A key misconception that still prevents businesses from finding a flexible space to call home is that long leases always save money, while this may be true in some cases, it’s only the case if the business uses the space properly and has the stability to justify a multi-year commitment. Should things change, which, let’s face it, can happen to even the most established firms, the lack of flexibility can result in them paying for empty desks.
Finally, there’s a tendency to assume flexible spaces are for start-ups only. Whereas in fact a well-served office space that requires minimal commitment (similar to the ones The Base offers, for instance) can work for established SMEs and businesses entering a new phase of growth, even if to give them a space away from their headquarters to work on projects or work on things without distraction.
The decision to choose flexible office space or a long-term lease comes down to what your business needs right now, be that:
Flexible spaces tend to work best where growth is part of the picture, and long-term leases suit businesses with more predictable requirements.
The right choice is the one that supports your team and finances without creating more risk than is necessary.
For businesses that are weighing up flexible office space vs long-term leases, The Base is ideally suited because its positioning is around convenience and business support rather than old-fashioned one-size-fits-all arrangements.
The Base offers fully serviced private offices for 2 to 50 people and features all the amenities and digital infrastructure you need to achieve what you want. Our contracts range from 12 to 36 months, which gives those who call The Base home more freedom to choose a solution that fits their current stage and plans.
Tenants at The Base also have access to the unrivalled Elevate Business Support Programme, which helps businesses in several different areas, from marketing to tax. So, as well as a hub that gives businesses the space to operate, The Base also actively helps them thrive.
01925909777
info@thebasewarrington.co.uk
The Base, Dallam Lane, Warrington WA2 7NGOn behalf of
