Flexible Vs Leased Offices

Below is a summary of the key differences between Flexible and Leased Offices. If you would prefer to speak to us please call 020 3713 1950 or email [email protected].

Factor Leased Office Flexible / Serviced / Co-working
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
Process Higher complexity
To find the best solution requires, detailed market research, agent, solicitor and fit out company involvement
Lower complexity
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
Outgoings Various bills
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 Various
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
Lifetime costs 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 Significant control
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
Additional services Not included
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
Brand control Complete control
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.
Managing change Relatively inflexible
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.
Relatively flexible
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 Occupier creates
Meeting rooms for exclusive use, designed to enhance brand, at own cost
Operator creates
Unbranded which are used on a pay as you go basis, subject to availability
Workspace density Likely more generous
Often more generous for working environment but with associated costs.
Usually higher
Higher density in desk environment but ability to use shared spaces and facilities with less expense.