Office sharing is a concept that allows companies who own or manage an office, that have redundant office space to share or rent the workstations or self-contained units to smaller companies looking for flexible workspace. This creates
revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
for the company that runs the office, and provides a cheap, flexible alternative for companies looking for an office outside of their home. The main benefit of sharing an office is that it provides a more dynamic environment for both companies involved and access to new markets.
However, sharing office space does come with some problems of its own:
* Higher office management costs (cleaning services, printer ink, office supplies and so on)
* Faster wear and tear of office equipment
* Potential NDA issues if the space isn't properly divided
* Setup costs (dividing the space with fake walls)
* Management Software costs (resource management, reception desk software, meeting room management and so on)
The arrangement can be particularly sensitive in the case of attorneys and MDs - in such cases, a legally-binding Office Sharing Agreement should be carefully considered and redacted.
Office Sharing is similar to
Coworking
Coworking is an arrangement in which workers for different companies share an office space. It allows cost savings and convenience through the use of common infrastructures, such as equipment, utilities and receptionist and custodial services, a ...
, though coworking spaces tend to include more tenants, a broader range of amenities and a stronger emphasis on community and networking.
See also
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Sublease
A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...
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Shared services
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Coworking spaces
Coworking is an arrangement in which workers for different companies share an office space. It allows cost savings and convenience through the use of common infrastructures, such as equipment, utilities and receptionist and custodial services, a ...
References
External links
Kathleen Landis, ''Yours, Mine, Ours'', My Business magazine, OctNov 2002 at National Federation of Independent Business
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Business terms