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Decoding Different Types of Office Space

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As a commercial real estate consultancy, DeVono Cresa advises businesses on their workplace solutions – this covers a wide variety of spaces and types of leases and licences. Whilst we understand our industry’s working jargon, we appreciate that many of these terminologies may not be clear to everyone. Accordingly, in order to help you better understand all of the types of leases, licences and workspaces available to your business, we have come up with a simple overview of the main types of office space, flexible workplaces and traditional leasing solutions.

Flexible Workplace Solutions

Serviced Offices

Serviced offices are intended to be flexible, hassle-free, and cost-effective private workspaces with in-built services for businesses. The ready-to-go office model allows your business to turn up and plug-in with no (or at least limited) start-up costs. The rent, business rates, utilities, furnishings, reception staff, network, IT support, building maintenance, cleaning and more, are included in one, monthly licence fee, allowing you to budget with clarity. You can take anything from one to 1,000+ desks, with on-site operations and facilities management teams taking care of the day-to-day, allowing you to focus on your business.

Managed Offices

A hybrid solution between serviced and traditional office leasing – managed offices offer a blank canvas, allowing tenants to personalise the space in terms of its interior refurbishment, but delivered either by the building’s landlord, or by a third party operator.

For businesses that require their own individually designed and branded workspace, but don’t have the resources, time, budget, or inclination, a managed office could be the ideal solution. They provide a cost-certain, and typically flexible (in lease length) solution for, often, slightly larger teams wishing to occupy an entire floor or demise. The monthly all-inclusive fee, similar to serviced offices, includes all of the property, as well as many of the operational costs, with the initial fit-out expense amortised over the term.

Remainder Leases

Remainder leases are the residual time remaining on a conventional lease that is no longer required by the incumbent tenant. This type of solution suits opportunistic occupiers who want to benefit from inheriting a fully fitted office for a shorter finite period of time. Due to the nature of this solution, the length of lease and the level of fit-out included will vary. You will hear them spoken about as one of either an assignment, an underlease or a sublease, the latter two meaning precisely the same thing.

Coworking

Coworking spaces are typically shared workstations in an open plan ‘office’. They focus on community interaction and offer a variety of membership packages such as flexible and short-term, or a pay-as-you-go model. London is awash with coworking options, with a type of space for every kind of occupier (women-only, dog-friendly, private member lounges, childcare friendly; you name it).

If a flexible workplace solution sounds like the right option for you, DeVono Cresa can help. After understanding how your business works, we will build the right flexible workspace package for you. Start your search here.

Traditional Office Leasing

A traditional office lease, also known as /’conventional’ or ’leasehold’, requires signing a lease directly from a landlord. This act then grants you occupation over an office space for an agreed period of time, typically anywhere between 3 years, to in excess of five, ten or even 15 years. You will have full control over the internal demise, meaning that you can fit out and furnish the office any way you choose, to create a space that represents your brand.

DeVono Cresa’s design and build team, Dthree Studio, was created to give clients a best-in-class design and build service. Find out more here.

Traditional leasehold offices give businesses privacy and branding opportunities that flexible offices typically cannot match. A traditional office lease usually better suits slightly more established businesses, that are perhaps better able to predict with accuracy, the headcount in their business over a period of years – something that start-ups and fast growth businesses cannot. Traditional leases will often represent a better fit for businesses that combine stable and predictable growth, with financial security, as well as a willingness to commit to a particular area for a longer time period. A businesses taking a traditional lease will have to be comfortable with the fact that they will have a capex liability at both the beginning and the end of the lease, in the shape of the initial fitout at lease commencement, and the obligation to return it ‘as new’ (known as terminal dilapidations) at the lease expiry.

If a traditional leasehold solution appeals to your business and set-up, allow us to help you find your perfect workspace. Start your search here.

At DeVono Cresa, we ensure that your real estate decisions are aligned with your wider business strategy – and as a result we explore new and improved ways of delivering workplace solutions that are bespoke.

We specialise in advising occupiers on both conventional and flexible office solutions to ensure our clients have full visibility on all the options available to them.

Start your search – get in touch with the DeVono Cresa team today on +44 (0)20 7096 9911 or email us at info@devonocresa.com

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