When looking for an office space to rent, one of the options that you have is to sign for a direct lease. By signing a direct lease contract, the business will shoulder the expenses for the entire office space and the entire responsibility is given to the business itself. Other options like having a shared office space allows for two or more businesses to handle the responsibility of the direct lease while dividing the office space and the costs equally.
Another option is subleasing wherein a business will simply rent out a portion of the office from the business that is already handling the direct lease. These different lease options have advantages and disadvantages but for now we are going to focus our attention on direct leases and determine the proper time when a business can take on a direct lease in the renting of an office space.
1.) The business has the capability of shouldering the cost of a direct lease – The main reason why many startup companies and new businesses shy away from a direct lease is the costs of handling a direct lease. Other options liking subleasing and a shared office space are easier on the budget. Once a business has developed and become more capable, going for a direct lease despite its higher costs may be a consideration especially with its benefits.
2.) The business needs to have more space – Compared to a sublease or a shared office space, a direct lease provides the business with more useable space. This is because when a business takes on a direct lease, the business is able to make use of the entire space available in the property. To help your business grow and develop, more space would be essential. So when you are looking for an office space and space is something that is needed, going for a direct lease in a large office space would be preferable.
3.) The business is building its name and reputation in the market – Having the office space all to the business is a way of showing how capable the company is. The business is essentially branding itself as one that is capable and well developed. In addition to that, the flexibility and control that a direct lease provides the business allows for it to make changes in the space that will best reflect and brand the company. The company will also be able to renovate the area to its desire so as to provide the optimum environment for its employees and build a name in the market.
4.) The business wants to take on bigger challenges and work on more projects – In order for a company to grow even further it will have to take on harder and more challenges than before. For that to be possible, the business will need to have access to more equipment and area in the office space which can be provided through a direct lease. This helps the company work on tasks easier allowing it to grow further.