As leasing agreements near their expiry date in today's office market, businesses can be faced with a troubling decision to renew or relocate. Often times, one hears of a business that is locked into a well-situated office building that can no longer afford the leasing terms, and to make matters worse, the efforts to dispose of the property (by means of renegotiation or finding a new tenant) in such turbulent financial times are met with little success. Naturally this is bad news for landlords who are stick with prime property, yet for businesses that are deciding to renew, it could spell disaster.
As the credit crunch continues to affect business throughout London and the UK, the need for alternative leasing options becomes all the more important. Instead of a lengthy lease, many smaller companies are finding serviced office solutions an ideal alternative, especially if they wish to remain in a prestigious business district for maximizing effectiveness in today's marketplace. While the market declines and vacancies in exclusive business areas of North and Central London increase, the serviced office offers short-term leases for companies that hope to capitalize on more tenant-favourable options that are cropping up daily from short-term office space providers. Revitalizing the office market will take perhaps years, and while this shortens the profits for landlords, property owners, and traditional office building occupiers, the advantage of lower pricing, more competitive terms, and attractive locations in increasingly vacant business districts rests well in the short-term office solutions industry. Perhaps a sign of times to come, many businesses--large and small--have begun to research these alternative leasing options not only for the flexibility they provide, but for the demonstrated financial security it holds over traditional leases
