The Surge in Subleasing: Is it the Next Move?
When you’re looking for accommodation, you’re searching for hotels but also shared space options on Airbnb. When you need to find your way home, you’re most likely ordering your shared ride home on Uber instead of hailing a taxi. Sharing space and renting property in peer-to-peer marketplaces is a huge industry. So why can’t offices be part of this sharing economy too?
There are Fortune 500 company buildings standing vacant in a CBD that has never been quieter. The matter of the fact is, there is plenty of office space sitting empty right now. The real question becomes; what’s the volume of people going to be like when it’s safe to return? Until we’re at that stage, nobody knows for certain. Whether it’s employees opting to work remotely, or a downsized workforce, the future of work will no longer be the same. At this stage, what you can do is start thinking about how your office space can be used when the corporate world is recovery ready.
Your opportunity for a new income stream
As we mentioned before, the shared economy is one of the most profitable industries in the world. With all this excess office space, you’re sitting on a new revenue stream. Whether an office wing, floor or even building is empty because of staff reductions, you’ll be able to monetise this empty space in a sublease strategy. In fact, the volume of Sydney CBD sublease space has now reached a 10 year high, surging to soaring levels. You’ll want to get in now as demand rises.
The Difference Between Leasing and Licensing
Whilst both involve the right to use a premises in an agreed way, there are key legal differences to know that may determine what you’d opt for. Whilst a sublease grants the subtenant the right to exclusively occupy a specific space for the specific time, a sublicense is a more flexible arrangement. That’s because the sublicensor is not granted the same security as in a lease, and does not have rights to the specific space exclusively. During these times, licensing offers the adaptability and efficiency you’d want, especially if you end up needing your office space again.
Sharing your space
Another opportunity lies in sharing the office space you use with someone else. Of course, this completely relies upon the comfort of you and your employees with working alongside another organisation, especially with recent safety concerns. Accordingly, you could temporarily wall-off sections and make a private work environment to break up your space. All you’ll need is a simple license agreement between associated parties.
Health and Safety
It’s the first thing everyone asks about these days. You’ll need to think about how you can make sure everyone is safe and healthy within your work environment. This means minimal shared spaces like kitchens and meeting rooms, enough space to have everyone spread out, and little opportunities of crossing paths with other companies if you share space. In fact, you can even make it a requirement for your subtenants to follow your hygiene protocols.
How Spacenow Helps
Spacenow is an online peer-to-peer marketplace where you can list any type of space. Our hosts gain access to more people who need flexible space, meaning more enquiries for you! You’ll be able to decide on the terms, set the price, and use a standard license agreement all whilst our team takes care of everything else. Take a look at the benefits of hosting with Spacenow here.