What are the Different Types of Office Space?

In basic terms, office space falls into two categories – rented office space and licenced office space.

There are some variations, however, including flexibly leased office space to rent, sub-let office space and others.

Rented Office Space

This is office space that is owned by a landlord and occupied by a tenant. A lease is drawn up between the two parties that documents the legal obligations of both parties.

A tenant, typically, has more legal rights than a licencee but also, typically, has more obligations.

Flexible Workspace

Flexible Workspace (or flex space), is an umbrella term for office space or workspace that is not held by way of lease.

Typically, flexible workspace is held by way of a short term licence that can be rolled over.

The agreements are often described as ‘easy-in and easy-out’ due to short form of the contracts and absence (or reduction) of legalese.

An occupier of flexible workspace pays the office provider/operator a monthly fee that covers ‘rent’, utilities, insurance, cleaning, furniture, and other overheads.

Dependent on the business centre and the specific agreement signed, other items can be included such as reception services and catering facilities.

Often, the occupier has the ability to increase or decrease the size of their office in line with changing needs, during the term of occupation.

Flexible workspace can include serviced offices, managed office space and various forms of co-working space such as hot/floating desks and dedicated desks.

Flexible workspace is typically within a business entre that is occupied by other companies. An office provider/operator will, typically, rent a floor, several floors or a whole building from a landlord and then subdivide the space to licence or sub-let to various occupiers.

There may be shared workspaces within these business centres and, typically, kitchen and WC facilities are shared with other occupiers.

Managed offices, typically, do not follow this rule and occupiers have their own front door with no shared facilties.

It is not uncommon for a business centre to contain a mix of forms of flexible workspace within.

Further information can be found on the How Businesses Acquire Office Space Page.