The concept of office space leasing has changed dramatically over the last 10 years with the introduction of shared office space. In and around major cities such as Boston, this trend is growing rapidly with both small and medium sized companies. Why is this option so appealing? Here’s a look at the reasons behind the growing demand for shared office space in Boston.
Shorter Commitment Period
The length of leases for shared office space is typically less than that of traditional office spaces. Although most companies extend discounts for longer commitment periods, terms can be as short as six months. This is ideal for companies in transition or those that are uncertain about their future needs or location.
When leasing traditional office space, lessees must typically invest in furnishings to fill the space. This can result in a large up-front expense. Shared office space comes furnished, providing convenience and allowing for quicker occupancy.
With the advancement of technology and the Internet, it’s easier than ever for entrepreneurs to start new businesses. Many begin with very few staff and physical resources. Shared office space is ideal for these types of businesses. It allows them to start small and slowly add as they grow.
Even medium-sized companies benefit from shared office space due to the work-from-home trend. With work forces located across the country and able to communicate and connect virtually, many companies are finding less need for full-time office space and more need for occasional or flexible office usage in various locations.
Networking is another reason for growing demand for shared office space in Boston. Shared space provides the opportunity to interact with other like-minded professionals. It also facilitates introductions and referrals, which is key for almost any business but particularly for start-up or small businesses.
The number one reason for growing demand for shared office space in Boston is cost. Shared office space is normally less expensive than traditional office leases. This is primarily because businesses can rent less space (only as much as they need) and not because the overall space itself is less expensive. Additionally, some resources and amenities (i.e. conference rooms) are included as an upcharge, as-needed, rather than built into the monthly or yearly lease amount.
There’s Growing Demand for Shared Office Space in Boston, but It’s not For Everyone
Clearly, there are some great benefits to this model, thus the growing demand for shared office space in Boston. However, it’s not for every business. For companies with a larger workforce and need for dedicated access to resources, the shared model simply doesn’t work. It would cost far too much to lease shared space in volume. Additionally, privacy and security may be a concern in shared spaces. Instead, companies are adopting shared office space concepts in their cubicle and interior design, giving them the best of both worlds.