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When does it make sense to use a flexible workspace over a traditional lease?
The vast majority of decisionmakers at enterprise-level companies think about real estate in terms of capital expenditure. Traditional leases are priced on a per sq m basis and include operating expenses such as service charge and facility management. Additionally, further variables such as rent-free periods and fit-out allowances must be factored in. On the other hand, flexible spaces are paid either by desk or by membership basis and may require additional payment for amenities. Additional costs may occur if space has to be customised.
But the key question here is how to account for uncertainty, risk, headcount development and all the other ‘what ifs’? How should they be priced in?
Hear more about agile real estate and how to weight flexibility in real estate.