Sometimes, it can be difficult to find the right Shoreditch office space for a business. Real estate office rentals are still catching up to the increasing demand for corporate space, so most businesses must consider alternatives like a transfer to a smaller location or a shared office space. In these tough economic times, saving rent money for the best value is a good idea, especially when falling revenue is considered. Businesses are competing with one another for the best available locations and amenities, both to appeal to potential customers and to present a good image to prospective employees. With the cost of rentals also going up, one possibility that should be considered is renting an office in conjunction with another business. This agreement may be a new concept for some, but it is an idea that is fast developing in the business world.
The main benefit to such an arrangement is that shared office space requires much less capital, putting a lesser financial strain on the business. In a situation similar to two people sharing an apartment, the fees are split evenly between all parties. This allows more money to be allocated to other expenses. These other expenses include advertising, office supplies, and equipment. It also allows for more room in the budget for a business to adjust to unexpected scenarios.
A shared Makati office is usually already equipped with the usual office furniture, basic utilities, and common machinery. Depending on the building or the terms of the agreement, the tenants for that shared office space may be required to pay extra for other amenities. This can help save time and money for a company that is only starting up or provide a quick solution for a larger corporation that needs to open a small branch office.
Another benefit available to those who rent office space with other companies is the chance to expand. Since the two businesses share space, it is likely that customers for one of the businesses might be inclined to ask about the others. This will help expand both companies’ potential clients. If the companies are in related fields but are not in direct competition, this can also lead to referrals.
The primary concern with shared office space is the same as the concern for sharing an apartment. There is the risk that the other parties involved may not be able to keep up their part of the rent. Business can fail at any given time, for a number of reasons. If one of the businesses sharing the space is no longer able to pay their share of the rent, that places the burden on the other tenants.
There is also the drawback of not owning the equipment in the Makati office. Depending on the agreement, some of the equipment in the office will not belong to any of the tenants. This is not a problem until there is a time where one piece of equipment needs to be repaired or replaced. The owner can arrange for that to happen, but this will usually be at the expense of the tenants. This can be a major problem if one of the tenants damages the equipment, as all of those sharing the rent will need to pitch in for repairs.
There are drawbacks to shared office space arrangements, but the potential benefits can make up for that. The reduced cost of rental fees and the chance to tap into a larger customer base may make up for the drawbacks of the arrangement. However, this is a major decision, and a business owner may not find it suitable for his needs. Time should be taken to consider the benefits against the drawbacks before making a final decision.