With the current crisis facing the world's economy, specifically the credit and securities industries, it can be a tough market for a new business that is looking to obtain a new office space. Fluctuating property prices in tandem with the sour economy can lead many businesses to liquidate assets for more spending capital, rather than significantly invest in new property. With conventional offices as the most typical solution for established corporations needing little flexibility, it can be hard to recommend that new start-ups and small independent businesses look anywhere other than managed and serviced offices to meet daily business needs.
The general rule of thumb when securing a new conventional office agreement is to prepare for at least a 5-year contract. This way, many businesses enjoy the benefit of free rent terms to be decided upon making the lease agreement which will earn them large sums of revenue in the long-term. 'Long-term' being the operate phrase, conventional offices do not work well for any corporation without an entrenched foothold in the market of their choice considering the cost associated with lease agreements. In addition, it may take up to a year for transitional paperwork and operations to be completed before the conventional office is even made ready for use, which can be a kiss of death for small business owners that need to generate revenue in order to survive the increasingly hazardous marketplace shuffle every month.
Compared to serviced and managed offices, again, only those corporations that are invested in the long-term need apply. Considering that many traditional office spaces are no longer economically viable due to the financial crises, the flexibility benefits one gets from the shorter lease terms, complimentary IT services, and working environments more amenable to growing company sizes of serviced offices will almost always trump the free rental period advantages of conventional offices for the new start up and the small business owner.
