Author – Dev BT
Conventional Office Lease
Let’s discuss the difference between Conventional Office Leases and Coworking Spaces to understand it better in terms of Services offered by both service providers;
Let's Take a Look from the Start - How both Sectors look @Hand-over.
Conventional Office Lease Space
The Problems with Commercial Office Leases
Pure Brick & Mortar
Most Landlords offers Space with plain walls, glass-doors (in few cases), plain ceiling, Power-back-up (only in A-grade buildings), rest of Interiors jobs, fit-outs, floorings & all Tech-hardware, software needs to be set-up by the Lessee on their own cost. The landlord will maintain Common Areas, Stairs, Lift, Lobby area & Parking space only.
no value added services
Apart from Pure Brick and Mortar Space, there’s no-value added services offered by the Landlord & Developer. The Lessee, will have to search, explore all the additional services and outsource from other sources which is additional Investment and WASTE OF TIME & MONEY.
not global standard
An Estimated 70% of Commercial Leased Office Spaces are not matching the Global standard in terms of Quality of Construction, Design, Location, Amenities and Internal layout. The Reason? These Developers/landlords are PART-TIME developers, their idea of Construction is; Build-Sell & Get-out with Profit. Most of them doesn’t want to maintain property post possession. However, few large Reputed Developers & Global Real Estate focussed VC funds are changing the obsolete working-system & implementing global practices, but they still have long way to go. However, these large Organized players have presence only in Metros or Tier-1 cities.
These Commercial Leased Spaces don’t have any type of Get-together-Event spaces, where all tenants come together and share, organize some Professional or Social events or any such Platform where tenants can interact, share information and Communicate.
missing professional environment
Most Commercial Leased Spaces are Lacking in Professional Environment apart from services, which is very much prevalent in Global Professional IT companies as a result the Young Generation Entrepreneurs are attracting towards Coworking Spaces which offers them Great Professional Ambience with an opportunity to Work – Network & Grow.
CAM (Common Maintenance Charge) is one of the Pinching-Point of every Tenant in These Commercial Leased Spaces, in some instances the Maintenance agencies are charging very high amount per sq.ft. on Super Area, this is one of the Hotly debated issue in global Commercial Realty Lease term. Apart from CAM few landlord levy hidden charges i.e. Parking, advertisement, publicity, etc.
Most Commercial Leased Space assets are DISORGANIZED without any professional Management Services in place to manage day to day maintenance, cleaning, security, etc.
Larger Tenant prefrence
Most A-grade Promoters/Developers of larger Commercial Lease Space prefers Tenants with large space need, their argument is instead of dealing with 100 tenants they would prefer to deal with 10 tenants and not all Tenants have large space needs nor they have big budget.
expensive lease & start-up cost
- High Rent – Most A-grade Commercial Lease Spaces comes @higher Rental cost per month across the globe.
- Additional Cost – Apart from Expensive Rent per month, the Lessee needs to Invest on Interiors, Hardwares, Softwares, Equipment, Tech and additional services.
Most A-Grade Developers/Landlords have standard & inflexible Commercial Lease terms format which is purely one-sided and not suitable to many Tenants. If some tenants want to have short-term lease, they are bound to be blankly refused or not entertained.
Snooty - Non-Responsive - sitting behind curtain wall
Most A-Grade Developers/Landlords have set-standard for themselves in such a high-level that, accessing them is simply impossible, or most of them like to sit-behind-the-curtain and deal via a front-man or middle-man, which is not an ideal situation in the Professional domain. In case of some serious issues, these Front-man’s don’t have power to resolve issues and Lessee is left clueless to whom to contact in such scenario.
The Solutions - Coworking Space
Coworking Space does offer benefits over conventional offices for established, new or dynamic businesses, including:
For Global Professionals
- Entity’s key objective – Solving members problems and Service Oriented.
- Design & Fit-outs – Modern & latest design fit-out and fully furnished Spaces.
- Customer Focussed – Planning & Designing spaces as per New generation users preference without compromising on Quality.
- Customer 1st Approach – Which brings more people to Work, Network and Grow.
Seamless global tech @every layer
Use of Latest & Best Technology @Every-Layers for smooth operation for booking, payment, supports, chats, billings and other services.
Value added services
Apart from Space
- Not just Brick-and-Mortar – Coworking Space Service providers offers more than Brick-and-mortar space.
- Value Added Services – Apart from Global standard spaces, they offers other services like Stationary, Cafe house, free-drinks, tea-coffee, uninterrupted Free-Wifi (high-speed), meeting rooms, flexible plans, printing and affiliate resources what an Organization, Start-Up or Entrepreneur requires @CLICK of mouse, without any extra cost to Members (lessee) under one-roof, saving Time, Energy & Money.
Global community of Professionals
- Communities of like minded Professionals without office politics – Growing company & network in the presence of peers, collaborators, mentors, professionals, creators and members, helping hand available on-the-spot.
The Atmosphere – filled with Fun, Friendly, Inspiring, Collaborative & Productive and create an Environment to hone Skills & Grow in whatever you are doing.
Building Network – Community platform helps Members to build wide network by connecting them with Potential Partners, Customers, Investors and Advisors across in-house existing global ecosystem.
World Class Event Space
- World Class Event space with latest Interior designs, latest tech and all needed Hardware and equipment to organize events to showcase products, services, new launch or just get-together @Minimal Cost and short notice.
- These events offers an opportunity to Network with Investors, Mentors & Advisors.
flexibility & agility
- Saving Big Cost – No or Low start-Up cost, saving cost of Investment on Hardware, Software, Interiors, Design & planning, sourcing, manpower cost, liasoning & execution.
- No-lock-in Period – Flexible plans as per your requirement, pay and use without any lock-in period obligation.
- Suitable plans for all – Multiple plans suitable for all on Hourly, daily, weekly, monthly or yearly basis.
- No-CAM – No hidden cost or extra CAM charges, all cost included in the membership plans.
not just brick-n-mortar
Designed for Global Professionals – Designed, Planned and executed keeping in mind Global Professionals needs, preference and latest trends. Use of latest Technology and Fully furnished ready to move-in-plug-n-play spaces, saving Time, Energy & Money.
Big Network Building platform – Big Community of Professionals and an opportunity to build network and Collaborate with like minded Professionals, service providers.
Mentors-Investors & Experts
- Access to Professional Mentors, Investors & Experts – Easy & Quick access to Mentors & experts relevant to Industry and valuable to Start-Ups and Entrepreneurs for right advise and guide.
- Investors Network – Introduction to prospective Investors for project funding and Investment opportunities ground for PE’s, VC and fund houses.
Most Coworking Spaces are located in the City Centre, having membership to these places can have access to immediate Prestigious Address for your Start-Up or Business which is one of the Most Prominent part of any Organization. In the Corporate World (A bitter-Truth), the 1st Impression of your Organization starts from your Address.
Access to Global Affiliates
Most Coworking Spaces have affiliate partner networks across the World or Region beyond their physical locations for products or services, as a member, you can have access to those network immediately saving you lot of Time, Money & Energy.
Coworking Space Happiness Analysis by the Numbers
- Solutions – Coworking Spaces offers solutions for Small businesses, entrepreneurs, SME’s, freelancers, start-ups or anyone who is looking for World Class Professional WORKSPACE, GLOBAL COMMUNITY of professionals with ideal atmosphere, allied services at a fraction of a cost.
- New Generation Entrepreneurs – The new era of Entrepreneurs are fascinated by those Pioneers around the world who believe in a Challenging & Innovative new way of life and doing work differently and who believe in Work – Network – Create – Collaborate – Innovate – socialize and thrive theory!
Success & Pssions – Everybody want to pursue their passions, be part of something greater than what we are today and BE MORE SUCCESSFUL in whatever we do!!!
And Coworking Platforms offer all these opportunity under one roof.
Competitive Advantage – Coworking Spaces has lot of Competitive Advantages over Commercial Leased Spaces.
Evaluating all these factors, Coworking Space provides much more VALUE to it’s users than Conventional Leased Offices. However, in terms of large space requirement, Coworking Space cost is much more expensive than Commercial Lease Spaces. What we foresee is, in the future both segment will co-exist and the ratio between these 2 sectors could reach to 50:50 by 2035 or earlier.
In our next post, we will discuss more on Coworking Space Trends, Key players and lot more, for more updates on latest posts, subscribe to our newsletter, if you have any opinion or better solution, lets discuss on our comment box, till than Happy Reading!!