Now you lease it, now you don’t

Companies hit hard by the recent economic downturn are learning that the most expensive office space is unused office space. The boom that created skyrocketing rents and office-space shortages also encouraged companies to gobble up as much square footage as possible and secure it long-term. Now the albatross of extra space hangs heavily on some companies’ necks as they downsize and trim budgets.

Flexible-office providers hope that when the economy recovers, executives remember the examples of the past and invest more of their real estate portfolios in temporary space. Leases in flexible office space run for months and don’t leave a nasty mark on a balance sheet in the event of changing space needs.

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