Should You Be Renting Office Space or Leasing?

by Caroline Hamilton / Commercial Manager

View more articles by Caroline

30th Jan 2020

Shared office space

With flexible office options increasing in Bristol, we look at how your business can benefit from renting office space vs leasing.

A recent report by Savills captured the changing demands from business owners:

“Corporations love the ability to scale up and down as needed, and leverage flex options
to attract the next generation of talent.”

Today companies in Bristol need their business headquarters to be able to adapt to changing financial landscapes, keep up with latest technological developments and offer resources to support a growing workforce. While a traditional office leasing agreement offers lower fees by charging cost per square foot, long-term contracts (usually 12 months) mean a company has to remain commited to the space regardless of whether it’s still in their best interests.

Here are a few options to consider when deciding on renting vs leasing an office space.

If you’re a startup business

If you’re starting out on a business venture and considering your first professional workspace, here are a few questions to ask yourself if you’re considering a lease contract:

Will there be enough space in 12 months based on hiring plans?
Does the business have resource to take on facility and utility bills?
Have you considered business scaling too quickly when looking to lease office space?
Does the business space need to be client/customer facing?

The questions above should help you visually map out your business growth and what that might look like in a physical space. If you can’t answer who will be responsible for organising commercial waste collections and office maintenance, or you’re uncertain of what the increase in headcount will be in six months, a flexible office option might give you better piece of mind.

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If you are relocating your business

Here at Origin Workspace members that have opened satellite offices or relocated chose coworking over leasing because it’s helped them to integrate into the local business community. From finding talent, to growing your regional presence, to attracting new business, a leasing agreement is a good option, but it doesn’t offer the additional collaboration opportunities of a coworking space.

If you want to find out how other companies have relocated or opened a satellite office, read our Origin member Q&A.

If your business is established

Company owners looking for a more permanent presence, an office lease is probably an attractive option.

As well as giving the business additional branding options in the space, and flexible office management, we usually find established companies opt for coworking or serviced offices because:

They need to attract the best talent to stay ahead of the competition
They like to be part of a wider community and share industry expertise
There are more collaboration and partnership opportunities in serviced office spaces
Renting an office space gives companies the flexibility to have more than one physical presence

Large companies tend to opt for a traditional leasing option because they have the following challenges:

Having +50 employees and needing a large office space that’s centrally located
They often need a commercial premise and another office facility close by (studio, laboratory, practise)
They need a lot of space for storage, whether that’s documents or stock

Whether you opt for an office lease or to rent a flexible space, here at Origin Workspace we know how quickly business requirements can change. Speak to our team if you need a workspace to support your business growth.