After spending 15 years helping businesses find their perfect office space, I’ve seen it all – from startups making snap decisions they later regret to enterprises locked into leases they’ve outgrown. Let me share some real-world insights about choosing between short and long-term office rentals.
The Truth About Short-Term Rentals
Let me tell you about Alex, a tech founder I worked with last year. He was adamant about signing a long-term lease for his 10-person team. “It’ll save us money,” he insisted. Three months later, his team doubled in size after a successful funding round. Guess who spent the next six months trying to get out of that lease?
This is why I often recommend short-term rentals for:
- Fast-growing startups (trust me, you’ll grow faster than you think)
- Project-based teams (I’ve seen entire departments disappear after project completion)
- Seasonal businesses (why pay for December when your peak is July?)
The Hidden Perks Nobody Talks About
Here’s something most brokers won’t tell you: short-term rentals often come with fully stocked kitchens and premium coffee machines. One of my clients saved $15,000 annually just on coffee and snacks! Plus, these spaces are usually move-in ready. No waiting three weeks for the internet provider (I’m looking at you, traditional leases).
Long-Term Leases: The Inside Scoop
Remember that trendy coworking space that popped up in your city last year? I recently helped a marketing agency move out of there. Their monthly hot desk fees for 15 people actually exceeded what they now pay for a private office with twice the space on a 3-year lease.
Long-term rentals make sense when:
- Your headcount is stable (like my law firm clients)
- You need heavy customization (one client built a podcast studio)
- You’re in a high-demand area (I’ve seen prime location rents jump 40% in a year)
The Money Talk
Let’s get real about costs. Last month, I compared expenses for a 20-person company:
Short-term (monthly):
- Base rent: Higher per square foot
- Utilities: Included
- Furniture: Included
- Internet: Included
- Coffee/Snacks: Included Total: $12,000/month
Long-term (3-year lease):
- Base rent: Lower per square foot
- Utilities: $800/month
- Furniture: $40,000 upfront
- Internet: $400/month
- Coffee/Snacks: $500/month Total: $8,700/month (plus upfront costs)
My Unconventional Advice
After years in this business, here’s what I tell my clients:
- Test Before You Commit Start with a 3-month short-term rental. I’ve saved countless clients from expensive mistakes this way.
- Location Matters Less Than You Think With hybrid work here to stay, I’m seeing successful companies choose cheaper locations and invest the savings in quarterly team retreats.
- The Hybrid Solution Some of my smartest clients combine both: a smaller long-term office for their core team and flexible short-term spaces for expansion.
The Decision Framework I Use With Clients
Ask yourself:
- Can you accurately predict your headcount in 18 months?
- Do you need to build any walls or special installations?
- How important is premium address to your business?
- What’s your tolerance for upfront costs?
Real Talk: When Things Go Wrong
I’ve seen companies lose six-figure sums trying to exit long-term leases early. But I’ve also watched businesses overpay by 40% for short-term flexibility they never needed. Your choice depends on your specific situation.
Looking Ahead
The office rental market is evolving faster than ever. Just last week, I toured a space offering “subscription-based” offices – a hybrid between short and long-term rentals. The future might make this whole debate obsolete.
The Bottom Line
If you’re growing fast, chose short-term. If you’re stable and know exactly what you need, go long-term. And if you’re unsure? Start short and go long when you’re ready. That’s the advice that’s kept my clients happy for 15 years.