Traditional Office Space vs Flexible Office Space: 3 Key Aspects to Consider | Fusion Workplaces

Traditional Office Space vs Flexible Office Space: 3 Key Aspects to Consider

Traditional Office Space vs Flexible Office Space: 3 Key Aspects to Consider

More and more, companies are starting to realize the benefits associated with utilizing flexible office space. With changing regulations, market needs, and workforce preferences; companies have been forced to adapt and transform the way they approached work and the workplace.

This has led to the growth of the flexible workspace industry. The past couple of years have seen the exponential growth of flexible workspace operators across various markets, cities, and countries. So, what is the hype all about? What is it about flexible workspaces that has overshadowed and taken over the traditional office space?

Flexibility

Flexible workspaces provide flexibility--in terms of lease contracts, the amount of space taken up, and the add-on services that can be hired.

As companies enter new markets, as their teams grow or contract, flexible workspaces allow them to fluctuate and go through these changes without major consequences. Leases can be as short as a day, and the number of desks used can be changed in a matter of days or hours.

While originally this flexibility was an advantage mostly to small businesses and startups, large corporations are starting to embrace this flexibility, as it enables their staff to interact with new people, it enables the company to enter a new market without incurring on many costs, and it provides access to new talent pool.

Cost

Flexible workspace share resources, which means that operating costs are shared between all tenants and users. Additionally, instead of having to pay and commit to a 10-year lease (which often requires a high amount of capital and available cash-flow), companies or individuals can sign leases of a month or less--reducing the amount of capital and cash-flow needed on a day-to-day basis.

In the short term, flexible offices are cheaper. Long-term, the cost of square footage is higher than that of traditional office space. However, the flexibility to use only the space you need and to increase or decrease this amount as needed often makes the added cost in the long-term worth it. Especially when considering the amount of underutilized or unused office space in a traditional setting.

In addition to this, flexible workspaces are fully managed, unlike traditional offices. Businesses can make do without a facility manager and staff dedicated to the management and administration of a large office building. Flexible workspaces also require the payment of only one bill, as opposed to several ones (water, internet, electricity, etc.), which is highly convenient and reduces processing and administrative fees.

Branding

Flexible offices and can help reduce costs and better manage cash-flow; they do have the downside that they, oftentimes, don’t allow for much personalized or individual company branding.

Flexible offices are ready to use, with everything being taken care of, including the fit out. While this is highly convenient at times, it does not allow for companies to get involved in the buildout, fit out, and designing process of an office--which often plays a key role in the branding and image of a business.

This point is important to various companies, especially those that often receive clients in their offices. While some flexible workspace operators are slowly allowing companies to brand their flexible space; this is an exemption that is only given to companies that take up a high amount of square feet and that commit to a longer flexible office lease.

There are various other pros and cons to flexible workspaces and traditional offices; however, as the world rapidly changes and evolves and as market needs and trends fluctuate, flexibility has become a key part of most businesses. In addition to this, with new lease accounting standards being put in place for 2019, many companies are convinced of the competitive advantage of flexible offices.

We cannot leave out, also, the community aspect of flexible workspaces. This aspect is the key  driver behind innovation, collaboration, and new business opportunities for companies working from flexible offices.

More detailed and specific pros and perks of flexible workspaces can be found here.

 


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