Here we look at 2 options to consider if you're looking to de-risk your business, save money and adopt 'work from home' strategies alongside an office model in the short to medium term.
In response to the global pandemic, there is a reluctance for UK businesses to return to our major cities.
Working From Home (WFH) is now an accepted practice with 50% office employees home working and this is expected to settle at 30%. Businesses are now considering this in their overall real estate planning.
MBS Property have explored cost effective and safe working options to save our clients time and money, without the burden and risks of long-term lease commitments.
Part-Time office solutions, ideal for businesses still wanting a city presence without the cost
Flexible office providers are now offering this option, which can work alongside your WFH needs.
Reduced real estate cost
Team cohesion and collaboration
Flexibility to act fast in lockdowns
Maintain city presence and connections to client base
Greater talent attraction
Clean, dedicated and safe working space
More geographical working locations
Assign your lease, Making your lease for flexible.
If you're locked into a long term lease commitment, it can be extremely daunting in a looming recession and not to mention a global pandemic.
Therefore, flexible office solutions just aren't an option. If you're able to consider handing your lease back or allowing someone else to take it over, this can of course give you greater flexibility and less risk.
Assign your Lease
Leased agreements may sit heavily on the balance sheet in the current pandemic crisis. Landlords may offer limited flexibility on rental payments, whilst your office space sits largely empty.
Assignment is basically selling the current lease you have to a new tenant and they take on the current tenants liabilities and you walk away from the lease. Depending on the Strength of the market assignment can come with a premium or a reverse premium attached to it. Most likely it will have an AGA in place, so if the company you assign the lease to falters, then the lease will revert back to the tenant.
The tenant gives a new lease to a tenant and they sit as a buffer between the tenant and the landlord. If you sublet a floor within your lease agreement for a year then this gives you the opportunity to take the floor back at the end of the sublease, if your company grows again.
You move out of the space or contract into exactly how much of the space you actually need and employ a serviced office provider to manage the surplus or redundant space. This also allows you flexibility for future growth for when times are better. Any profit the operator makes in the surplus space is shared with tenant.
By assigning a lease can offer you greater flexibility and MBS Property can help negotiate with the landlord.
- Reduced costs
- Greater flexibility
- Reduce liabilities
- Maintain a HQ / if you decide to share the lease with another business.
- Incorporate WFH and flexible working practices to reduce cost and increase talent attraction
- Shared costs and liabilities
Please download the free PDF for more information.