Commercial Real Estate News / Leasing/Renting / The Different Types of Office Spaces and What You Can Expect Them to Look Like

The Different Types of Office Spaces and What You Can Expect Them to Look Like

Published: 08-05-21 Category: Leasing/Renting

Luke Williams

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

This article was updated on 7/14/2023.

Did you know that not all office space is created equal? I don't just mean in terms of size and amenities, either. There are many different office types to choose from, and what you and your team need and want will determine which type of office space you'll want to go for.

Here, we'll discuss the different types of office space, how they work, their benefits, and how you can decide which office space category is right for you.

#1 – Traditional Office Space

If you've ever been into an office, then you'll know what a traditional office space looks like. There's a reception, a bullpen where cubicles get set up, a few private offices, and a break room that doubles as the printer and copy space. This type might even throw a mailing room into the mix.

Traditional office space is for companies wanting that standard layout. You should plan to stay awhile with this type as the lease that comes with these office spaces is typically between three and five years. Unpack and get comfortable.

Today, amidst the ramifications of the COVID-19 pandemic and a vastly distressed office space sector, large companies are starting to shift away from this type of office space and turn towards more collaboration-friendly solutions, like co-working spaces.

#2 – Creative Office Space

The creative office space is an open-concept workplace where everyone can vibe with each other. It typically has low-walled workspaces, so people can see over them to their teammates and work neighbors. In addition, the creative office space has a minimal number of private offices, so employee management and leadership can comingle.

The layout of this type of office space is very open, with either concrete or wooden floors and open ceilings so you can see the ductwork running through the building. There are also large windows to let in natural light.

Teams are put together in group workstations. There are plenty of conference rooms for collaboration and large kitchen and break areas so groups can sit down and talk. To help with teamwork, there might even be a large game room where employees can hang out, catch up, and build their professional relationships.

The creative workspace is used not only for collaboration but also to help spark creativity. It's becoming a more common type of workplace with the shift in traditional office space usage.

#3 – Contiguous Office Space

This type of office space is all about renting multiple suites of offices to a single tenant either on one floor or across multiple.

The contiguous office space gets used when a company wants to keep all parts of the business close together. The company that rents this type of space is usually a large business with multiple departments interacting frequently.

#4 – Coworking Space

If you're a start-up, entrepreneur, freelancer, or someone who doesn't want to work from home, this type of office space for lease is a low-cost option. Coworking office spaces have rentable desks and tables, meaning a single building or room can hold many different business professionals.

The coworking space you choose decides on how long the leases are. Some of them get rented by the day, some by the week, others month to month. You might even find coworking space offering leases even longer than that.

Essentially, it's an open floor plan that helps promote collaboration, social synergy, and detailed business interactions. It comes with either basic desks or even spaces at long tables that you can rent.

The great thing about a coworking office space is that everything is included in the price you pay. So, all you have to worry about is one bill rather than several.

The fee for coworking space includes:

Rent;
Utilities;
Common Area Maintenance Expenses; and
Insurance.

The coworking space is perfect for those unable to pay the premium for a private commercial real estate location.

#5 – Shared Office Space

The shared office space is where one company that has extra office room subleases that spare space to a different company. Like the coworking space, there's a mingling of various business professionals, but instead of many different businesses, it's just two.

The great thing about sharing office space is that it allows the leasing company to make up some of its overhead costs. It also allows the subtenant reduced rates and greater leasing flexibility.

#6 – Executive Offices

Consider executive offices as a more traditional version of the coworking space or the higher-end version of coworking office spaces. It's considered the original work-from-home alternative meant for lucrative businesses or entrepreneurs.

It's fully serviced with various amenities and comes furnished with private offices instead of everything in the open.

The executive office amenities include:

Receptionist for taking calls;
Conference rooms for meeting with clients;
Business mailing address;
Printers and photocopy machines; and
Private offices.

This type of commercial office space lends small businesses more authority by having a professional-looking workplace.

#7 – Flex Office-Warehouse

Flex office-warehouse space is for an all-in-one business where everything gets handled under a single roof. Which, if you think about it, really consolidates commercial real estate expenses.

A tiny portion of the building is used for office space, around 5%. The rest of the location is for the industrial/warehouse side of the business. This way, administration and leadership are kept close to the company's heart to oversee day-to-day operations.

Mixing It All Together

With all these options, it can be challenging to decide which type of office space is suitable for you. The great thing is that you don't have to choose just one type of office space for lease.

You can mix traditional cubicles with a team seating in a semi-open floorplan with a huge kitchen. Or, mix it up by having the executives share offices.

Whatever you need for your office space, there is something out there that will fit your needs. All you have to do is look, reach out to the right people, and maybe work with a commercial broker or two.