A growing concern for many businesses is the need to secure funding for projects, business ventures, and expenses in the face of frozen accounts and limited resources brought about by the credit crunch. As their bottom line begins to suffer due to the added restriction, companies under tight, lengthy office leasing agreements have begun taking steps to streamline their deployed staff into a central location while disposing of extraneous property (even if it's at a loss). This tactic is typical of one where a corporation's assets have been placed into a significant investment in the form of a traditional office, yet those businesses that have opted for short-term office solutions are finding an added freedom of flexibility and increased spending ability even in the roughest of economic times.
Serviced office rental terms generally start at a month, and represent the current market value of property (which currently is at all time lows for even historically exclusive business areas). As such, short term office tenants enjoy a prime location, a flexible rental length and ideal conditions, in addition to the ability to easily expand their office space upon extremely short notice thanks to ready-made offices that are fully-equipped with machines, telecoms/IT support, and available reception staff. Compared to a month of rent free when agreeing to pre-credit crunch leasing agreements with a traditional office, the two options seem as night and day for post-crunch businesses seeking the best office solution.
Obviously for the start-up company, their best interests lie in doing business serviced office providers over traditional office market landlords. Perhaps even for the larger business that is having difficulty disposing of their well-situated (yet unusable) leased property, a good way of 'feeling out' new locations before a relocation is to rent out a short term office for months at a time, and transfer sales branches to get a barometer of the new area. While the 'crunch' lasts, these larger corporations may even upon research find that serviced office solutions simply outperform and outdeliver conventional office leasing options altogether.
