Published in Cambridge Independent, Commercial Property, January 16, 2019
A new year is often the time to reflect on work practices and make important changes.
Now more than ever before, the space we work in, is high on the agenda for review. A focus on staff wellbeing and the retention of talent in the team is leading to changes in work practice such as hot-desking and home-working, generating a need for flexible and cost-effective work environments.
The result is a revolution in how organisations lease and manage property to deliver their business. Average lease length is now just 7 years, a hefty reduction from the standard 25 years which was the norm in the 1980s & ‘90s, This reflects both the economy and a dynamic business world recognising that adaptability is crucial.
Tenants are increasingly reviewing their options and turning away from onerous leases with high rents and poor accessibility and Landlords are becoming more creative in their approach to developing and letting their space.
For some businesses the traditional lease or a building acquisition may still be the right strategy, but for others the flexible approach will be the better way forward.
What are the possibilities?
- Co-working – Co-working space comprises offices accessible to multiple organisations where users buy a membership which provides desk space and bookable conferencing facilities and meeting areas. For small business owners this is a cost-efficient way of getting the benefits of a modern office without onerous lease obligations and encourages a collaborative approach to work.
- Hot-desking – With flexible working practices such as job-sharing, partial home working and staggered hours, a desk for every employee is not necessarily required. However, the workspace needs to adapt to accommodate this technically and logistically and therefore layout and space design is critical. For many businesses an investment in reshaping the office is more prudent than an office move.
- Lease restructure – There are occasions when either a landlord or tenant seeks to restructure a lease, enabling either to develop their business strategically. Such negotiations require the goodwill of both parties but can often lead to a better outcome for both. Restructuring of a current lease should not be overlooked as a possibility for more effective operation.
Doyen Land works with businesses to find and adapt premises which meet their needs and landlords to develop space to meet the modern occupier’s demands.
Doyen Land is a Property Advisory service with 30 years’ experience in commercial property and development consultancy. We are members of the Royal Institution of Chartered Surveyors (RICS) and our clients benefit from expert professional advice and support. If you feel this would help your organisation please do not hesitate to contact us.
