The Benefits and Drawbacks of Sharing Office Space
Many times, it may be hard to find the suitable office space for a firm. Philippine real estate is still catching up to the rising demand for corporate and business space, so a good number of businesses must think about possibilities similar to a transfer to a tighter location or a shared office space. Because of these difficult commercial times, preserving rent cash for the best price is a good idea, especially when plummeting revenue is taken into consideration. Businesses are competing with each other for the most beneficial obtainable areas and features, both to attract prospective customers and to offer a very good image to would-be personnel. With the rate of rentals also going up, one opportunity that should be taken into consideration is renting a workplace together with a different business. This agreement may be a fresh strategy for most, but it is an idea that is fast rising in the corporate society.
A major perk to such an arrangement is that shared office space involves a reduced amount of money, placing a smaller monetary strain on the business. In a situation similar to two folks sharing a condo, the fees are split equally among all parties. This makes it possible for more funds to be allotted to some other expenditures. These other expenditures consist of advertising, office items, and technology. It also provides for more space in the spending budget for a business to conform to unexpected situations.
A shared Makati office is typically already equipped with the standard office furnishings, standard features, and commonly used equipment. Contingent upon the building or the stipulations of the agreement, the renters for that shared office space may be required to pay extra for other features. This can help save time and cash for a firm that is only starting up or supply a speedy option for a bigger corporation that wants to start a small branch office.
An additional advantage available to those who rent office space with various other organizations is the option to increase in size. As the two corporations share an office, it is possible that customers for one of the organizations might be inclined to find out about the others. This will help expand both companies’ potential clientele. If the businesses are in similar career fields but are not in direct opposition, this can also bring on recommendations.
The chief worry with shared office space is the same as the issue for sharing a high-rise apartment. There is the risk that other parties involved may not be in a position to stick to their part of the rent. Businesses can fail at any particular time, for a variety of factors. If one of the firms sharing the space is no longer able to settle their share of the rent, that puts the burden on the other tenants.
There is possibly the downside of not getting the appliances in the Makati office. Depending on the contract, some of the supplies in the office will not belong to any of the renters. This is not a predicament until there is a time where one item of equipment is required to be restored or replaced. The owner can arrange for that to take place, but this will usually be at the expense of the tenants. This can be a big dilemma if one of the renters causes damage to the equipment, as all of those sharing the rent must pitch in for repairs.
One can find downsides to shared office space arrangements, but the prospective rewards can easily compensate for that. The lessened charge of rental fees and the possibility to make use of a larger consumer base may compensate for the disadvantages of the set up. Even so, this is a major decision, and a company owner may not think it is suited for his needs. Effort should be used to consider the advantages against the downsides just before making a final choice.
The writer is a real estate journalist with a large amount of expertise in Rent an Office in Makati. Those who are interested in obtaining additional details may look at http://officespacemakati.com.
Processing your request, Please wait....
