Have you heard the term flexible office space but you’re not sure how it differs from a standard lease?
- You sign an office service agreement rather than a lease
- There is no cost per square foot with flexible office space; you pay the cost per office
- With flexible office you will be using shared facilities (think kitchens and conference rooms) rather than your own space if you lease
- There’s no-to-minimal upfront capex required for flexible office. It’s essentially turn-key, whereas with an office, you have to pay to wire and furnish
- Flexible office space has shorter terms than a standard lease, typically 12 months or month-to-month, while a standard office lease is generally 5-10 years (can certainly be less)
- Standard leases are often 60-100 page documents, while a flex agreement is only about 10 pages = less in legal fees (attorneys don’t hate me!) – Note Either way a real estate attorney review is key 🔑
- Finally, with a flexible office space you can grow and shrink easily according to what your business demands, while a lease and a traditional office you have a set amount of space, which makes shrinking or expanding more difficult. You may need to sublease, get a second office, or move if you need to decrease or increase office space.