What do we mean when we say that restrictive leases are bad business. Well essentially we’re saying that they’re bad for business, as well as being “bad business” in their own right. But why might they be bad for your business specifically, and what do we mean by a restrictive lease?Essentially, a lease that is restricted is one that ties you down to a lengthy period, such as a permanent contract. A long term contract is essentially condemning your business to the same place for many years to come, and doesn’t reflect the moveable nature of modern business.
These lengthy contracts can be expensive, and don’t represent the changeable nature of property prices. You could easily be overpaying for your office spaces, as the cost renting falls around your feet. Instead, surely it makes sense to choose temporary contracts, which are more likely to represent property prices as are they are now.
There are other advantages too. What if your business needs to change? This is a very pertinent question, and your business is likely to change and evolve, preferably the sooner the better. This could mean you outgrow your current premises, and need additional space or a brand new space altogether.
Of course, the converse might be true. And your business might need to downsize, due to some unforeseen circumstance. Whichever way you cut it up, when you need office space to rent, you should look at offices to let that don’t demand a lengthy or restrictive agreement.