In today's rapidly changing business environment, selecting the right office space is more crucial than ever. This choice not only impacts day-to-day operations but also affects a company's long-term flexibility and growth. Flexible leasing, encompassing coworking spaces and serviced offices, represents a modern solution that has significantly evolved. Initially favored by freelancers and startups, flexible leasing to accommodate businesses of all sizes and types, from emerging enterprises to established multinational corporations.

For the purposes of this blog post, "flexible leasing" or "flex" generally refers to both coworking spaces and serviced offices. While these terms have become fairly interchangeable over time, certain operators may choose one term over another for strategic brand positioning.

What is Flexible Leasing?

Flexible leasing offers short-term office spaces that are typically less binding than traditional commercial leases. Payments are all-inclusive and made monthly. Typically, while you may have your own private office, you'll also share access to communal facilities such as kitchens and meeting rooms.

As the sector has matured, the range of flex providers has expanded from small independent operators running a single site to stock-listed conglomerates managing several thousand locations globally. This growth underscores the adaptability and scalability of flexible leasing arrangements.

Comprehensive Comparison of Office Lease Types

The below table provides key insights into the differences between flexible leasing and traditional commercial leases, helping you make an informed decision that aligns with your business's operational needs and strategic goals. Whether you prioritize the flexibility of a serviced office or the stability of a traditional lease, understanding these options is fundamental to fostering an environment that promotes productivity and positions your business for success.

Feature

Flexible Leasing

Traditional Commercial Lease

Tenure

Short-term options as brief as one month, typically up to 12 months.

Long-term commitments usually starting at three years.

Rates

Charged monthly, all-inclusive.

Calculated annually per square metre, additional costs may apply.

Inclusions

Typically covers all outgoings, internet, maintenance, cleaning; often includes furnishings and amenities like social events.

Outgoings and amenities not typically included.

Networking Opportunities

Communal spaces foster broad networking beyond immediate industry.

Limited to internal or building-specific interactions.

Employee Engagement

Frequent member events and professional development opportunities enhance company culture.

Depends on company’s own initiatives.

Building Grade

Access to premium facilities without upfront investment.

Dependent on lease terms and investment in fit-outs.

Fit-out

Limited customization, provided by flex operator.

Full customization possible, tenant has complete control.

Branding

Some restrictions based on operator’s policies.

Full freedom to brand space as per company identity.

Network Capabilities/Internet

Shared WiFi, additional services for a fee. On-site IT support.

Full control over IT infrastructure setup.

Flexibility

Can easily move within the center or shift offices to accommodate growth, depending on contract terms and availability.

Typically requires subleasing or lease transfer to change terms or exit early. More rigid.

 

At Sidespace, we can assist with your office search, by providing you with flexible leasing options and traditional commercial office spaces to suit your business needs. We can also arrange inspections on your behalf. Our service is at no cost to you. Contact our Property Concierge to find out more - click here or call 1300 841 100.