Positives And Cons Of Sharing Office Space
A shared office space can be a mutually beneficial strategy for business people who are not able to pay for the rent by themselves. This is a significant choice, nevertheless, and should not be carried out without cautious contemplation.
In some cases, it may be challenging to find the perfect office space for a business. Philippine real estate is still catching up to the rising demand for corporate space, so a lot of organizations must ponder alternatives similar to a transfer to a small location or a shared office space. Because of these rough financial times, preserving rent money for the greatest worth is a good option, especially when slipping earnings is considered. Companies are competing with one another for the very best offered places and amenities, both to appeal to prospective clients and to offer a good impression to would-be workers. With the price of rental accommodations also going up, one opportunity that must be considered is renting a workplace in conjunction with another organization. This arrangement may be a different strategy for some, but it is an idea that is fast developing in the corporate community.
A key benefit to such an agreement is that shared office space involves a smaller amount money, placing a smaller economic strain on the business. In a setting similar to two folks sharing a rental, the fees are split uniformly among all parties. This allows for more money to be assigned to other expenditures. These other expenditures include things like advertising and marketing, office supplies, and technology. It also allows for more accommodation in the finances for a company to adjust to unforeseen scenarios.
A shared Makati office is normally already pre-loaded with the standard business office furniture, basic utilities, and regular machinery. Depending on the building or the terms and conditions of the contract, the renters for that shared office space can be required to spend extra for other facilities. This can help save time and cash for a firm that is only starting up or supply a speedy option for a larger firm that needs to open a small branch office.
One more benefit open to those who rent office space with some other organizations is the chance to increase in size. Given that the two organizations share space, it is likely that clients for one of the organizations might be inclined to ask about the others. This will help build up both organizations' prospective clientele. If the organizations are in connected areas but are not in direct opposition, this can also bring about referrals.
The principal worry with shared office space is similar to the concern for sharing a condo. There exists the possibility that the other parties included may not be able to stick to their share of the rent. Business can crash at any time, for numerous explanations. If one of the organizations sharing the space has stopped being able to cover their share of the rent, that places the pressure on the other renters.
Additionally there is the disadvantage of not possessing the machines in the Makati office. Depending on the contract, some of the accessories in the office will not belong to any of the renters. This is not a problem until there is a time where one item of equipment needs to be fixed or replaced. The owner can arrange for that to take place, but this will normally be at the expense of the renters. This may be a huge challenge if one of the renters destroys the equipment, as all of those sharing the rent will need to pitch in for maintenance.
One can find downsides to shared office space agreements, but the potential rewards could compensate for that. The reduced cost of rental rates and the chance to make use of a greater client base may compensate for the drawbacks of the arrangement. However, this is a significant commitment, and a business owner may not think it is practical for his needs. Some time should be taken to think about the benefits as opposed to the negatives before making a final choice.
The author is a real estate investment specialist managing the best Makati Office and various other premises. For more information, visit OfficeSpaceMakati .