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Fixed lease trauma: Businesses moving to flexible shared workplaces to escape difficult landlords

Announcement posted by Invigorate PR 01 Aug 2024

According to Brett McAllen, head of @WORKSPACES, the nation's leading provider of premium shared flexible workspace hubs, demand for private offices, services offices, virtual offices and coworking spaces has exploded.

 

"Too many businesses are encountering bad experiences with their landlords and as a result,  choosing to step away from dedicated long term fixed lease sites to more flexible and shared workspace environments that cost less and offer far more versatility and scalability without the risk," McAllen said.

 

"Clearly the challenging economic situation is placing a lot more pressure on landlords and many are not coping very well. They are taking out their stress and frustration on their poor business tenants by cranking up their monthly lease payments, restricting their operations, failing to maintain the premises appropriately and in many cases just acting badly. 

 

"No wonder businesses are walking away from fixed term leases."

 

@WORKSPACES is the leading provider of premium coworking, private and serviced office hubs across the country and overseas. Their sites are situated throughout Australia in major cities and suburban locations. @WORKSPACES business centres are designed to provide a wide variety of flexible office spaces as well as meeting and conference rooms, collaborative areas, kitchen and cafeteria style spaces and other facilities including end of trip.

  

"We are experiencing a rise in demand from all types of businesses including start-ups and small to medium sized businesses to large organisations, corporate head offices and government departments. Their desire for flexibility is increasing and their capacity for risk is reducing," McAllen said.

 

"Many businesses are citing issues with landlords as a contributing factor in their decision to change strategy and move into a premium business hub, such as ours."

 

Dr Vivek Eranki, founder of many successful medical and health and wellness brands across Australia, moved his head office into a premium serviced office.

 

"We want our staff to focus on the business operations and this was pivotal in our decision to move our head office into a premium serviced office. Rather than secure a long-term lease and bear the cost of expensive fit outs, cleaning, electricity and all the other expenses, restrictions and challenges that come with traditional leases, we now prefer ownership or shared business hubs," Dr Eranki said.


"Being at the mercy of third parties isn't ideal for the operations staff of businesses. I am aware of multiple tenants who have voiced their bad experiences and this has been enough to convince us that there is a better way.

 

"Serviced offices also allow teams to flex up and flex down their workforce to adequacy respond to projects."

 

McAllen supports Dr Eranki's view.

  

"Businesses are walking away from long term fixed leases where they have to take responsibility for all the costs. They just want to be able to operate their business in an environment where they only pay for what they need and the rest is taken care of. Importantly they just don't want or need the stress of a difficult landlord either," McAllen said.

 

"In effect, if you look at our flexible shared business hubs, we are democratising leasing and we are uberising business location operations. We are putting the power back into the hands of businesses to operate in a far more flexible, versatile and fluid manner and to use facilities as they need without having to pay for them 24/7/365."

 

McAllen outlines some of the benefits businesses are enjoying in flexible and shared work hubs.

Flexibility in office spaces

 

"Flexible workspace hubs offer companies a blend of space options, which gives them the ability to set up their office spaces how they want them based on their needs at the time," McAllen said.

 

"They are then able to change their workspaces easily without a lot of cost as they grow and expand or decentralise across other parts of the country. All of these benefits come with the freedom of avoiding long-term leases, while also having the flexibility to change locations and even scale up (or down) their spaces and services as needed. Without being locked into a typical office lease, businesses are not wasting their rental allocations and can budget accordingly."

 

No costly fit-out expenses

 

"Another huge benefit of moving your office to a flexible working hub provider is that the entire office space has already been fully fitted out and you can move in and start working right away. There is no need to spend hundreds and thousands of dollars on fitting out the workspace or conference and meeting rooms because they're already provided for," McAllen said.

 

"These professionally designed business centres contain options for clients and their visitors to meet and collaborate in spaces already fitted out with the latest presentation technology, and are available on hourly, daily or weekly rates, meaning that your business is only paying for the services when they're being used. Add to that the convenience of IT support and catering services readily available, and business owners are wondering why they even bothered with traditional set ups in the first place."

 

Changing work dynamics  

 

"Workers across Australia now want to work in environments that are dynamic, collaborative and diverse. Workplace hubs provide a wonderful sense of community and an environment for networking and socialising," McAllen said.

 

"Being part of a shared workplace hub can foster a sense of belonging and camaraderie, which can be especially beneficial for freelancers and remote workers. Workers have access to a support network of like-minded professionals who can offer advice, support, and motivation.  This helps with staff retention and also being able to attract talent."


About @WORKSPACES

 

@WORKSPACES is a premium service provider of coworking and private office workspaces that are strategically located near fitness centres, parks and dining and shopping precincts, so business clients are able to maintain a healthy work/life balance, and not fall into the sedentary lifestyle associated with traditional offices. Offices are located in CBD and suburban sites across the country.

 

www.atworkspaces.com