Securing office space is a long and drawn-out process.
Office space is one of the most fundamental needs of any company. Yet the act of securing office space is far from straightforward, with search times averaging half a year. Furthermore, due to multi-year leases being the norm, businesses are less able to adapt to the natural fluctuations of a company. In times of downsizing, they overpay for underused surplus space. In times of expansion, they are stuck until their lease expires; only to then repeat the whole process once again.
Landlords deal with their own headaches, too. They find themselves unable to clear inventory soon enough. Unoccupied office space usually means their listing does not reflect the needs of would-be tenants. This inflexibility to adapt to the market means sitting on property that continues to gather dust month over month.
Inflexible leases and under-utilised office space are leading to losses to both tenants and landlords.
6 monthsAverage time it takes to secure office space
3 yearsTypical minimum lease terms
8%Of office space remain unrented