Trouble could be in store for flexible office specialists if they let licences become legal tenancies. Robyn Wilson reports on the dangers.
But as this sector evolves, a crucial legal pitfall has come to light – one that could prove problematic for flexible office providers and their landlords in the not-too-distant future.
Occupancy agreements could become a complicated legal web, creating a headache for landlords, operators and occupiers.
Under a typical business model, an operator, such as WeWork, will rent space from a landlord via a head lease. The operator will then fit out and sublet the space to an occupier — such as a start-up business or freelancer — through a service agreement, also known as a licence.
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