The health crisis has brought major changes to Morocco’s economy and the world of work.
Every company has had to adopt a more flexible way of working. Employees have relied on digital tools to continue their tasks from different locations. Digital transformation has become a priority.
Companies with flexible structures were better prepared than those with less mobility.
Today, business leaders are questioning empty and expensive offices. The pandemic has affected companies’ ability to operate normally. Restrictive measures have created real challenges for liquidity and profitability, forcing business owners to make difficult decisions.
Tenants are now exploring their options: leaving their premises or reducing their rent.
Maybe it is time to reorganize. Should you move, adapt your workspace or find a new solution? Kowork can help you make the right decision.
Renegotiate your lease
Try to discuss your lease terms with your landlord. Communication is essential.
If your business is affected by the crisis, asking for a temporary rent reduction can be a good option. For example, instead of paying your full rent, you could ask to pay 60% to 75% of your rent for the next three months.
Your landlord may also face a difficult situation. However, making a polite proposal can still be worthwhile. Any temporary rent concession can help your business stay afloat.
Sublet your office
If some of your employees work remotely and part of your office is empty, consider subletting.
You could sublet your unused offices for the coming months to help cover your bills. It can also be a good way to build your professional network.
Of course, you must first obtain your landlord’s approval. Landlords are more likely to agree if you sublet to professionals with a similar activity and pay your rent on time.
Request a rent deferral
Your landlord may allow you to postpone rent payments temporarily. You would then repay the amount at a later date.
This option can reduce immediate financial pressure. However, you will still need to repay the rent later, whether in a few months or a few years.
Some landlords prefer to spread the cost over the remaining lease period. Others may require payment within the year.
A rent deferral is a good option if you cannot pay your rent now but want to remain in good standing with your landlord.
Terminate your commercial lease
First, review your lease carefully. Check whether it gives you the explicit right to terminate after a forced closure or other relevant circumstances.
Most leases require rent to be paid without compensation. Some leases allow termination or rent reduction only in very limited situations.
As soon as you think you may need to end your lease, contact your landlord. This is especially important if the reason is your inability to pay rent.
Open a dialogue and explain your situation. Hiding the risk of missed payments often makes the situation worse.
What should you consider for future decisions?
In light of the pandemic, landlords may change future commercial leases. Whether you plan to renew your lease or are looking for a new office, review the commercial lease agreement carefully.
Landlords and tenants should maintain open communication. Your landlord should be able to answer questions about insurance coverage, safety protocols and new guidelines.
Transparent communication helps protect everyone involved and encourages best practices in commercial leasing.
Key points to review
Space for social distancing
Reassess the space you need to respect social distancing for employees and clients.
Do you have enough space to install physical barriers between workstations? Do you have enough space at checkout areas to keep clients at a safe distance?
Considering these safety measures, decide whether you can stay in your current space or need to look for a new one.
Lease duration and flexibility
Whether you stay in your current lease, end it early or look for a new location, review the key terms of the agreement.
Understand the end date and termination conditions. Also ask whether you can shorten the lease or benefit from greater flexibility if your business needs change.
How to avoid future problems
As workspaces raise new questions, keep these criteria in mind when looking for an office.
Lease terms
In uncertain times, avoid long-term commitments whenever possible. The future can be unpredictable, so you need to adapt quickly and pragmatically.
Traditional leases can be restrictive. Choose flexible solutions, such as those offered by Kowork, to avoid future regrets.
Investment
For a business, real estate is often one of the largest expenses after salaries.
Kowork lease agreements include a wide range of services. This can reduce additional expenses and optimize your investment.
You pay only for the services you use during your commitment.
Space
If your employees work remotely or part time, your space needs may be different.
What surface area do you really need now? Asking the right questions helps you avoid paying for empty or oversized offices.
For example, choose a smaller space and invest more in comfort or location.
Location
You probably want to save time and avoid long commutes to the office. You are not alone.
Try to focus your search on offices close to your home or your team’s homes.
Work environment
Everyone now knows that the work environment affects morale and productivity.
As employees work remotely more often, offices need to offer warm, comfortable and attractive spaces. Your employees should want to come to the office.
Your office is more than a place to fill with desks. It reflects your company’s personality and way of working.
Make the right choice
By considering these criteria, you can avoid additional costs and complications when renting commercial real estate.
Your investment and the flexibility of your lease are two of the most important factors. The choice is yours.