In the evolving landscape of commercial property, the rise in flexible workspaces has and continues to transform the industry. This trend has changed how commercial property looks and works, with millions of people across the globe now having a new way of working.
Carry on reading to discover how to rent commercial property and the impact of flexible workspaces on commercial property, and we’ll address any concerns for commercial property going forward.
Those looking to rent commercial property need to consider a number of different factors:
Determine requirements and find a property – understand just what your businesses needs and search in your chosen location
Evaluate lease terms – review the lease terms, paying attention to rent, lease duration and break clauses and make sure to consider a flexible lease for your property
Appoint a solicitor – ensure a solicitor is appointed to handle legal aspects of renting a commercial property
Agree an offer and sign the contract
A flexible lease, otherwise known as a short term commercial lease, allows the tenant to rent a location for less than a full year. The duration is decided by the tenant and landlord and is sometimes adjusted throughout the lease depending on the business needs.
Flexible leases have grown in popularity with the rise of flexible working as businesses want to stay agile, especially those who are unsure of the needs or wants of their employees in the short-term future. A short term commercial lease is something tenants should consider when researching their next business property.
Since the rise in flexible working, businesses may be less inclined to invest in property or commit to long term tenancy of large office spaces. This has led to an increase in flexible leases as business’s needs change more frequently, assessing whether their staff prefer to work remotely or in the office, as well as anticipating growth or downsizing.
Although many benefits have come from the new way of working, the rise in remote and hybrid staff means that some commercial property now remains empty.
Despite this, the hybrid work model means that companies are still wanting to see staff in person, at least part of the time. Many businesses are still opting to have office space, they are just opting for smaller locations and have their staff use a ‘hot desk’ model. This is where employees rotate seating based on what days of the week they are in the physical office.
Office spaces themselves have also needed to adapt following the rise of hybrid working. With staff switching between remote and in-person work, more meeting rooms have been created in bigger commercial properties to keep those working in separate locations connected. This has meant adapting commercial properties by installing new rooms and changing office layouts.
The rise in hybrid working has also seen changes to the commercial property industry in the form of increased amounts of co-working and shared workspaces.
The biggest private landlord in London is now WeWork, and has been for some time. This shows the impact of hybrid working on the commercial property market. Although businesses may not be committing to their own office space, many are utilising office spaces through WeWork and similar companies.
Despite this, WeWork and other coworking businesses do not provide a complete solution to the changing commercial property industry, in fact they bring more issues to the table. With these businesses currently renting so much property across the country, landlords face issues when these companies come into trouble which is why it’s a good idea to have a commercial property solicitor on your side. WeWork itself has begun shutting locations and currently owes landlords over £3 billion in rent.
At Black Norman, we have an expert team of property solicitors who can assist with various commercial property services. We can provide assistance on renting commercial property, property development, the sale and purchase of all types of business property, and more.
We are based in Crosby, Liverpool and are proud to help the local community with commercial property, as well as our other services including wills and settlement agreements. Contact our friendly team today to discuss how we can assist you today.