If you've ever sat across from a landlord discussing a 5 or 10-year office lease and felt your stomach drop, you're not alone. As the Office Manager and Director of Leigh House, a boutique serviced office building in Pudsey, Leeds, I speak to businesses every week who are trying to avoid exactly that trap.
The good news is that a long lease isn't your only option anymore. Here's what I've learned from years of watching businesses choose flexibility over commitment, and why I think that shift is only going to grow.
The Real Difference Between a Lease and a Licence Agreement
The first thing to understand is that not all office agreements are the same. A traditional commercial lease typically runs anywhere from 3 to 10 years. That's a significant commitment, especially for a business that doesn't yet know what its next 12 months will look like, let alone the next decade.
A serviced office, by contrast, usually operates on a licence agreement rather than a lease. At Leigh House, that means businesses can sign for anywhere from 3 months up to 24 months. Once that initial term ends, the agreement simply rolls on a calendar monthly basis unless a new agreement is negotiated. No renegotiating a multi-year contract, no scrambling to find a way out, no long notice periods buried in the small print.
That distinction alone changes how a business can plan. Instead of committing to space you might not need in three years' time, you commit to what makes sense right now, with the option to extend, change, or move on when your circumstances do.
A Real Example: The Business That Stayed for Two Years After Signing for Three Months
One of our current tenants at Leigh House is a great illustration of this. They initially signed a licence agreement for just 3 months. Their head office wasn't willing to commit to anything longer at the time, so a short-term agreement was the only realistic option.
That was over two years ago. They're still with us.
What started as a cautious, low-commitment decision turned into a long-term working relationship, simply because the flexibility removed the pressure. They never felt trapped, so they never felt the need to leave. That's the opposite of how a long lease tends to work, where businesses often stay not because they want to, but because breaking the lease is more painful than staying put.