Lease commitment is at least 6 months, usually with no break clauses.
No flexibility to increase or reduce space.
Landlord often requires personal guarantee from the Company Directors. These requirements are difficult for companies establishing themselves.
The rent component of leased offices is usually only half of the total occupancy cost.
A minimum of 500 sq ft is required for a small operational office.
Considerable administrative effort is required to run, repair and maintain leased space.
Time and administrative effort is needed to run Office equipment, fix photocopiers, manage Coffee machines, organizing ongoing repairs etc.
Almost impossible to complete negotiations in less than 2 weeks
Extremely difficult to budget in advance due to Variables and unexpected costs.
Telephone installation can be a frustrating and lengthy process.
Furniture delivery/ decoration is typically a minimum of 1 week.
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Financial exposure is minimum 1-7-30-60 days or more if so desired.
Total flexibility to increase or reduce space.
No requirements for personal Services offices agreements are available by the week, month or on a renewable basis.
Costs include rent, electricity, cleaning, security, telephone, computer
Reception, coffee area, fax, copy machine are provided, and conference room is available, meaning the space requirement is minimized.
For example, a two-person services office is 150sq ft.
All the office management is already provided.
Occupancy is immediate.
Occupancy is immediate.
Ability to budget accurately in Advance.
Telecommunications such as a fax, e-mail, are provided.
Furniture is supplied.
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