Both Rental Offices and leased offices are ways of securing office space, but they differ significantly in contract terms and intended use.
By selecting the right office style that suits your business needs, you can make a more efficient and cost-effective decision.
Below, we explain the features and differences between these two types of offices.
Difference in Contract Style: Flexibility vs. Stability
Features of Leased Office Space
Leased office space is fundamentally based on a “building lease agreement” under the Land and Building Lease Act. Typically, lease terms range from one to several years, with renewal being the mainstream approach for long-term use.
This contract type has the following characteristics:
Suitable for establishing long-term bases It is ideal for companies aiming for business stability. Using a location as a base for an extended period facilitates building relationships with the local community and business partners. High flexibility for interior design and equipment: Companies can freely undertake interior construction and select furniture, enabling them to create office spaces aligned with their corporate image. However, this requires initial investment and effort. Enhanced security: Companies can install custom security equipment, allowing them to tailor information management and safety measures to their specific requirements.
Characteristics of Rental Offices
As mentioned above, rental offices are based on contracts designed for short-term use, typically ranging from several months to about one year.
This contract type has the following characteristics:
Ideal for Short-Term Use: Suited for project-based work or startups, contracts can be easily terminated when the usage period ends.
Immediate Usability: Essential office equipment is pre-installed, allowing operations to start immediately after signing the contract. Significantly reduced initial costs are also an attractive feature.
Contract Flexibility: Contracts can be signed only for the necessary period, enabling smooth relocation during business expansion or downsizing.
Comparison of Initial Costs: Considering Cost Efficiency
Initial Costs for Leased Offices
Signing a lease for an office space involves significant upfront costs, such as security deposits, key money, and guarantee deposits.
Additionally, interior construction costs and office furniture purchases add to the total, making the overall expense quite high.
Therefore, while it's a suitable option for companies planning long-term use, it can be a heavy burden for short-term needs.
Initial Costs for Rental Offices
For rental offices, initial costs are often limited to the contract fee and security deposit, significantly lower than for leased offices.
Furthermore, since interior finishes and equipment are already provided, additional expenses are rarely needed. This makes them a highly economical choice for startups or companies launching new ventures with limited funds.
Differences in Convenience: Accessibility and Location
Location of Rental Offices
Rental offices are commonly found in urban areas and business districts, making them convenient for building relationships with clients.
However, the more desirable the location, the higher the rent tends to be. In business hubs like Akasaka, rent can become a significant financial burden.
Convenience of Rental Offices
Rental offices are often located near stations or in bustling commercial districts, offering outstanding accessibility.
Additionally, some provide addresses suitable for corporate registration, enhancing business credibility.
It is possible to find properties offering an excellent balance between location and cost, allowing you to use rental offices at very affordable rates. Which Should You Choose?
The choice between a rental office and a leased office depends on your purpose and business plan.
| Contract Type & Suitable Use Cases |
Contract Type |
| Rental Offices |
・Short-term projects or startups
・When you want to keep initial costs low
・When you need immediate access to equipment or infrastructure |
| Leased Offices |
"・When a long-term business location is required
・When you want the freedom to modify interior design and layout
・When you wish to implement your own security system" |
Understanding the difference between rental offices and leased offices and choosing the option that best fits your company's needs is key to business success. For example, rental offices are suitable for short-term projects or startups because they offer low initial costs and come fully equipped. On the other hand, leased offices are ideal when you want to establish a long-term base or freely design the interior and layout. It is crucial to thoroughly understand the differences between the two, compare cost-effectiveness and convenience, and choose the option that aligns with your business plan and budget. For those searching for office space in the Akasaka area, we highly recommend considering “THE BLOOM AKASAKA,” which offers excellent cost performance and convenience.