Real estate is a major expense for companies and leasing office space, particularly in Manhattan, can have many challenges. Not only are there moving costs, renovations and your standard rent costs, but there are a number of other rent concessions that tenants are able to actively negotiate such as a free rent period during your lease as well as building operating cost and tax allocations. Companies that are best able to negotiate these costs tend to have lower rental costs but will still on the hook for significant office rent payments over the life of their lease. Luckily, there is another way with shared office space options.
Companies like Workville operate in the shared office space market that’s taking over New York. Their business model is to effectively buy or rent office space that is conveniently located in the center of major areas like Manhattan and create an office environment that resembles that of any large professional company. Instead of a large company their tenants tend to be smaller start-up companies who will sub-lease a portion of this office space from Workville.
Tenants are rewarded with convenient locations, professional management, and shared conference rooms and utility bills. In addition, there are shared receptionists and coffee machines, as well as janitors and other maintenance personnel. All of the benefits of a professional business setting are present and tenants don’t need to do anything to maintain their space, other than pay their monthly bill of course.
The most attractive feature for tenants is the ability to avoid the lengthy commitment that many lease agreements have. Given the start-up nature and limited history of many smaller companies it can be challenging for them to commit to the long-term lease agreements that they might otherwise be burdened by. Shared office spaces like those offered by Workville avoid all of that and provide companies with the ability to be flexible with their real estate commitments, only taking the space that they currently need and not requiring them to project their real estate needs several years out into the future. Many companies pay for additional office space to prevent needing to expand later on. Arrangements like those offered by Workville help to avoid all of that, allowing companies to save money on their real estate.