What is a shared office space? Everything you need to know
A shared office space arrangement is one in which a company with extra space in its office leases a portion of the space out to another company. Shared office space refers to the practice of two or more businesses sharing a commercially leased office. This means that both parties benefit from sharing the cost of the rent, bills, and overheads.
The rental terms and inclusions of shared office space are decided by the two parties who plan to share the office. Typically, the host will offer the space fully furnished and equipped with everything the incoming business might need like furniture, internet, phone lines, and printers; they also allow for the flexibility of a short-term agreement rather than the typical multi-year lease.
The lead tenant will have permission in their contract stating they are allowed to sublet their office space. This situation is generally a win-win for both parties, as it allows the main tenant to recoup some of their office space overhead costs, while the subtenant is able to enjoy reduced rents and more flexible lease terms.
Advantages of Shared Office Space
Shared office space on rent offers a lot of cost benefits to businesses. When an office is sub-leased, it reduces the rent.
shared office spaces are well furnished, including furnishing and utility costs. Some rental agreements also contain maintenance costs.
When you share an office, you would be sharing utility bills, cleaning/maintenance costs, and association dues. These are all monthly expenses, just like rent, but you would be sharing this burden.
Shared office spaces have brilliant networking facilities, which makes it easier for people to work. People of different companies can share their skills, business opportunities, and resources.
You only pay for the square foot you use rather than covering the cost of the whole floor plan.
Most of the agreements are highly flexible to allow you to rent space on a monthly basis.
Get back to work faster with a plug ‘n’ play space in a shared office.
Disadvantages of Shared Office Space
In a shared working space, not all facilities may be available to people at once. It often leads to more confusion and heartburn.
Confidentiality may be at stake when you have a shared office space wherein you are not only sharing the space but also the network and other things.
Sometimes the landlord can create issues.
Different types of shared office space
Depending on the particular office and occupying tenants, a shared office space typically includes dedicated desks and/or private office suites. The number of desks and sizes of the private offices can also differentiate with everything from a single dedicated desk to a private office space suitable for a team of up to 100+.
you’ll share the common areas with the other members, but the desk and chair are exclusively yours, often including a lockable storage cabinet.
What to consider when looking for shared office space?
The main tenant should have permission to sublease.
Offered space is separate and maintains privacy.
Discuss amenities usage.
Properly discuss electricity, water, and network bill sharing.