Traditionally, landlords prefer to let large office spaces to a single tenant, but as working practices change, this could no longer be the rental model of the future – as an October 2017 BridgingAndCommercial.co.uk article discusses.
Workers and companies often do not want the commitment of renting permanent office space, so flexible office spaces are being built or converted that operate on the desk rental model, where workers can hire desks for short periods of time. This is particularly suitable for freelance workers who want the facilities of an office and the community atmosphere, but do not require a long-term lease.
Many startup companies start with only a few employees. These often want the flexibility of an office space where extra desks will be available as they grow and take on more employees.
Landlords operating the flexible office model usually need to spend more resources marketing their buildings in order to attract a continuous number of tenants. Some build extra facilities such as gyms, cafes, meeting areas and receptionists. Though these facilities require extra staff and administration, landlords can charge higher rents because of them. Many employees take their workers wellbeing seriously and require cafes that serve healthy food, rest areas, and gyms.
Some large lenders require landlords who apply for commercial mortgages to have tenants with long leases. Smaller alternative banks are more flexible and will be more positive about applications for flexible office space rented on short leases. A commercial mortgage broker can help landlords find the most suitable deal for flexible office spaces.