Even in their heyday, long-term leases were a very risky endeavor that far too many businesses took the chance on, especially susceptible to the risk of these types of leases were startup businesses that are still in the early days of their launch and have not yet found a steady footing within their target market. While it has been a while since the heyday of these types of leases, there are still a lot of businesses and companies that are relying on long-term leases under the misguided logic that a longer lease automatically means it is more cost-efficient, and that having a long lease can help increase the morale of the employees because they know the business is locked into a location. 

Even before the entire COVID pandemic changed the ways a lot of companies do business, there was a large debate within the world of business about the validity of the risk-reward balance for a company to lock into a long-term lease. A lot of the factors that get brought up to help decide if these leases are a good idea for the company include the size of the business, as well as the growth opportunity present for the company. However, since COVID-19 has come and changed the way the world does business, it is painfully clear that long-term leases are more often than not going to end up being a poor fit for your company. If after the way COVID shaped the world of business you still think that locking your business into an 8-10 year lease is a great idea, you might want to take a look at how coworking spaces can actually help you save a lot of time and money all while still building and developing your company’s brand and culture. 

An Unstable Market Is Not Your Friend

For a long, long time long-term leases have been known as being a killer of startups because it is so, so hard for startups to predict their growth and accurately know exactly how much space they will need for their production, employees, and general business needs within the first few years, let alone the next 5-10 years of the business’s life. Now, add the complications that COVID-19 has exposed us to and you see more complications that can pop up that we have never even considered in the past. 

Because of the amount of instability that comes with running a business, it is vital that you look towards flexible office space solutions in order to help your business succeed. These are lease opportunities that can be expanded or contracted depending on what is happening in the market and how your company is doing over any given period of time. This type of office setup allows for your CEO or CFO to manage and balance all of your costs and other variables in order to understand what needs you currently have and how they are changing. 

Your Employees May Want To Work From Home

While allowing your workers to do their jobs from home was often looked at as a hazard and has been filled with red flags for a very long time, the idea that efficiency and production would plummet under these circumstances was put to the test during the pandemic, and a lot of these myths were proven to be false. Even a lot of companies that have long said that their production could not be done from home are finding that the work actually can be done from home offices or remote workspaces. These types of revelations in the world of work have made some suggestions that soon the idea of a big office building may be extinct. Contact us to learn more about our office spaces for rent.