Flex office firm adds ‘Covid clause’ to contracts
Flexible office space provider Be Offices has put a “Covid clause” into contracts for new tenants, making it easier for occupiers to restructure or walk away from leases if a second wave of the coronavirus pandemic leads to further lockdowns.
The move is the latest example of co-working and flexible workspace specialists rethinking their business model in a bid to woo new occupiers during and after the crisis.
Customers taking space from Be Offices before the end of the year will now have two choices in the event of another lockdown. They can either cancel their contract with one month’s notice, or freeze their fees and access their workspace for up to three months.
Flexible office space provider Be Offices has put a “Covid clause” into contracts for new tenants, making it easier for occupiers to restructure or walk away from leases if a second wave of the coronavirus pandemic leads to further lockdowns.
The move is the latest example of co-working and flexible workspace specialists rethinking their business model in a bid to woo new occupiers during and after the crisis.
Customers taking space from Be Offices before the end of the year will now have two choices in the event of another lockdown. They can either cancel their contract with one month’s notice, or freeze their fees and access their workspace for up to three months.
Before the addition of this clause, tenants were held to the length of their contract.
A spokesperson for the company, which has a portfolio of about 700,000 sq ft across the UK, said it has struck more than £1m in new leases since introducing the offer in recent weeks. They added that the move was intended to “give clients the confidence that they can take space with us, with the reassurance that they have options, in the event of another lockdown due to Covid-19.”
Meanwhile, other flex space operators are rolling out offers of their own in the fight for new business.
The Argyll Club has today launched a scheme whereby businesses can rent an office for the day at a number of its London locations in Mayfair, Victoria and the City.
In June, EG revealed that WeWork cut the cost of some new memberships in the UK by up to 75%, a larger discount than in deals rolled out pre-Covid.
Another operator, Workspace, offered three-quarters of its customers a 50% rent reduction during the three months to the end of June, taking a hit on roughly £15m of revenue.
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