Negotiate a Shared Office Space Agreement
Why You Need a Shared Office Space Agreement
Although the tradition in business has been to purchase or lease an office solely for one’s own company, many business owners these days are finding it more advantageous to share an office and executive suites instead. An office share agreement generally allows two or more companies to find office space and share it at the same time or at differing intervals.

Benefits of Sharing an Office Center

When you share an office center, you’re likely to cut down on leasing costs because you’re splitting them with others. While the tradeoff is that you have to navigate running your business alongside another business, the savings in capital spent often outweigh such issues.

Another potential benefit to sharing an office is that you may be able to form new partnerships. For example, if you run a web development business and you share an office space with a design firm, you might be able to trade work with one another to expand both businesses.

Potential Pitfalls of Sharing an Office

Unfortunately, there can also be some pitfalls that come along with sharing an office. These may be small, such as arguing over who is required to manage a shared snack machine, or they can be large, such as a dispute about which company is allowed to use the executive suites and at what times. Disputes, both big and small, can erode the work environment for all companies involved in the agreement, leading to the potential for decreased productivity.

Negotiating an Office Space Agreement

Although it may seem tempting to simply rely on a verbal or informal written agreement when sharing an office space, this approach can lead to complications. Without a formal, legal contract in place, any party involved in the agreement can easily misunderstand or misinterpret the terms, leading to problems.

Partner With an Attorney

When negotiating an agreement for shared office space, it’s always a good idea to involve an attorney or attorneys. As mentioned above, there can be a number of unforeseen pitfalls in the shared environment, so ironing out all of the details of the agreement from a legal standpoint is crucial in avoiding conflicts.

An attorney can work with all entities involved in the office share agreement to ensure that each understands the rights provided by the agreement. An attorney can also provide representation if a dispute reaches the point of litigation. As a result, before you find office space with a partner, make sure that you have legal representation lined up to avoid problems down the road.

December 11, 2017 Facebook Twitter LinkedIn Google+ Uncategorized