Leasing short-term in today’s uncertain business environment

Bálint Erényi at January 24, 2023

In today’s uncertain economy, companies are looking for flexibility in their office leases. 

Serviced offices can provide this. They also offer value and certainty that short-term leases do not.

The economic downturn, that we are currently experiencing is likely to continue through at least the next three years, which means that short-term office leases may become more viable as companies weigh their options in an effort to cut costs.

Deal value

The deal value of short-term leases makes them attractive to both tenants and landlords. 

Tenants can move into a space for a period of time, test it out for a few months, and then decide whether or not the location works without committing to a long-term lease. 

This also means that tenants who may be unsure about whether they want to remain in an office building will have time to explore other options while still renting office space nearby.

Flexibility

Short-term leases provide a great deal of flexibility for your business. In a downturn, you can renegotiate your lease or even terminate it early without penalty. This means that when times are tough, you can immediately cut costs. 

By opting for a shorter lease, you can save yourself money by cutting out any unused term at the end of your contract.

Moreover, in an upturn, if your business expands rapidly or makes significant profits, you may be able to negotiate with landlords for additional space on short notice. This would not be possible under long-term leases.

Finally, short-term leases also allow businesses to change locations quickly as circumstances dictate; this is particularly useful for startups who need flexibility in order to stay competitive in an ever-changing market environment.

Serviced offices

As a business owner, you know that the economic environment is always changing. The one thing that stays the same is your desire for the best deal value possible.

That’s why it’s important to be flexible and adaptable in your approach to office space. Serviced offices are one of the most cost-effective ways for companies to meet their needs when it comes to office space. When you choose serviced offices, you get:

  • A range of flexible workspace options; you can choose between hot desks, coworking spaces and private offices
  • Access to high quality facilities and services including meeting rooms, virtual offices and reception services

Short-term leases are more flexible and easier to renegotiate or cancel than long-term leases.

If you have a company that is still in its infancy, it may be difficult for you to make payments on expensive long-term office space. 

If your business is experiencing difficulties, the flexibility of short-term leases can help you out of this situation. They can give you some breathing room during hard times to reorganize and figure out how best to proceed. In this way, short-term leasing agreements can be seen as an investment in your company’s future. Thus it becomes more than just another expense that drains your budget.

The uncertain economic environment and the need for flexibility make short-term office leases a viable option for many companies.

uncertain business environment

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