|Speed of occupation
||3-9 months away
Search, negotiation and legal process to agree a lease will usually involve a longer lead in and negotiation period
|Short notice availability
Short form licence agreement means limited need for solicitors and legal cost
To find the best solution requires, detailed market research, agent, solicitor and fit out company involvement
A flexible office agent can arrange viewings and support through negotiations
|Length of commitment
||5 year lease, with a 3 year break typical
On smaller offices typically a 5 year lease with 3rd year break clause. For larger offices in higher prestige buildings lease periods are more typically 10-15 years
|Monthly rolling to 1 year licence agreement
Typical 1 year licence, Ranging from monthly rolling to 3 year agreements
Rent, business rates, service charge, insurance , data lines and utility services , office cleaning, printing ,post, refreshments and others
|One simple monthly bill
One pre-agreed monthly bill /licence fee . Plus ad hoc variables for meeting room use ,excess wifi usage or printing costs/postage etc
|One off costs
Fit out, furniture, legal fees, agents fees, stamp duty, wayleaves, dilapidations and double overheads. Rent deposit (typically 6 months)
Included in monthly licence fee. Rent deposits are typically 1-2 months licence fee
||Lower over long term
Typically lower over a longer period depending on size of space and headcount
|Lower over short term
Typically lower over a shorter term of 1 or 2 years, depending on headcount and density.
|Flexibility to change
||Limited by existing space/lease
Can redesign existing floor plates and density or hope for alternative space to become available
|Flexible within larger buildings
Can share change management intentions with Operator and discuss alternative space in same building or other Operator run centre
|Control and privacy
Typically control over everything non structural within the occupier's own demise.
|Limited control and privacy
Can brand within own private offices but shared spaces are under Operator's control
Building with several occupiers usually have a manned reception to welcome visitors. Landlords or managing agents will clean and maintain common parts and provide security . Most other administrative services are sourced independently
Operators provide security and a reception team that welcomes visitors and can handle post, answers calls and/or manage printing. As well as cleaning services for private offices and common spaces
Signage in entrance hall and at entry to space. Space is tenant's canvas
Restricted control, but access to alternative shared spaces that can enhance a brand without the upfront and ongoing costs.
Typical break clauses are at 3 or 5 years into a 5 or 10 year lease. Therefore timing of these needs strategic consideration at outset.
Particularly suits start ups, project teams and overflow requirements. Some agreements have monthly rolling break clauses. Most licences require 1-3 months notice prior to 12th month. Allows re-thinking of plans on a more frequent basis.
Meeting rooms for exclusive use, designed to enhance brand, at own cost
Unbranded which are used on a pay as you go basis, subject to availability
||Likely more generous
Often more generous for working environment but with associated costs.
Higher density in desk environment but ability to use shared spaces and facilities with less expense.