When you find a space you love, negotiating a long-term lease can be tempting. But is a long-term lease really in your best interest? Contrary to what you may read, a short-term lease or office rental isn’t indicative of a clouded vision. It doesn’t mean you’re not committed or lack long-term vision. It can actually be a smart cost-cutting strategy that better positions your company for future growth. Here are a few reasons short-term office space remains viable to any business in the pursuit of savings.
You Can Stay Nimble
Tenants that sign a long-term office lease run into one of two traps. Some fail to factor in future growth. They find themselves locked into a long-term lease for a space that’s too small to accommodate growth. Others project growth that doesn’t come as quickly as they thought it would. They end up overpaying for more space than they actually need. A short-term office space gives you the flexibility to move or expand when you need to.
If you’re fine where you’re at, you can renew that lease in a few months. If not, you can relocate to accommodate growth or scale down during a slow period.
You Can Lower Operational Costs
Many commercial buildings offering short-term leases may also roll concierge or on-site business services into their leasing price. These are cost saving amenities. They reduce operational costs and overhead if you’d otherwise pay staff or contractors for such services.
You Can Test-Drive Office Space Size
Sometimes eyeing up the size of a space on a walkthrough can lead to having too much or too little of it. Sometimes there’s no way of knowing exactly how much space you need until you’re working within it. You’re renting a 2300 square foot space, but realize you could’ve easily gotten by with 1100 square feet. If you’re signed into a long-term lease, there’s no flexibility to downsize or upgrade depending on your needs. The mistake you made with your initial estimate can’t be fixed. That isn’t a problem when you opt for short-term office space.
As you can see there are certainly advantages to choosing short-term office space in Los Angeles through PivotDesk, PeerSpace, and other property management companies offering short-term office leasing or week to week/month to month rent. Going short-term lets you settle in and plan for the future. Just be mindful of rising rental rates to ensure short-term remains your most cost-effective option.