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    How to Know If a Traditional or Flexible Office Is Better for Your Company

    The world of work has changed, and with it, the way companies conceive of their main operations center: the office. In the current landscape, the choice of workspace is not a random decision or tied to just a couple of variables; it has become a strategic decision that directly impacts finances, corporate culture, and adaptability. The dilemma for many companies in Spain is clear: should we bet on the stability and control of a traditional office lease or the agility and services of flexible offices?

    Both models offer significant advantages but are designed for different needs. This article is a comprehensive guide to help you navigate this crucial decision, analyzing everything from costs to the current state of the office real estate market in Madrid and Barcelona, so you can confidently choose the best option for your company.

    Defining the Models: Traditional vs. Flexible

    Before comparing, it's essential to understand what defines each model and what you can expect from them.

    What is a Traditional Office?

    This is the model we all know: a long-term lease (usually 3 to 5 years or more) for a private, empty space. The company is responsible for its design, furniture, utility management, and maintenance.

    Pros:

    • Total Control: Complete customization of the space to reflect the brand's identity and culture.
    • Branding and Privacy: An exclusive space that consolidates corporate image and ensures confidentiality.
    • Stability: Predictability of long-term costs and a permanent place for the team.

    Cons:

    • High Initial Investment (CAPEX): Requires a significant outlay for renovations, furniture, deposits, and technology.
    • Contractual Rigidity: Little to no ability to expand or reduce space if the company's needs change.
    • Hidden Costs (OPEX): The company assumes the management and payment of all services: internet, cleaning, security, repairs, etc.

    The Rise of Flexible Offices

    This model, which includes formats like coworking or serviced offices, offers ready-to-use workspaces with flexible contracts, often on a monthly basis. The space management and services are handled by the operator.

    Pros:

    • Low Initial Investment: No setup costs or large initial outlays. The model is plug-and-play.
    • Maximum Flexibility: Contracts that allow for scaling space up or down with agility, adapting to business growth.
    • Services Included: A single monthly bill usually covers rent, high-speed internet, cleaning, furniture, reception, and access to common areas.
    • Community and Networking: Encourages interaction with professionals and companies from other sectors.

    Cons:

    • Less Customization: Design and branding options are more limited than in a private space.
    • Potential Distractions: In shared spaces, the noise level can be higher than in a private office.
    • Shared Brand Identity: The company shares the building and image with the space operator and other companies.This is not happening when leasing a space as a service thou.

    Direct Comparison: Summary Table

    For a clearer view, here is a table summarizing the key differences between a coworking model vs. a traditional office.

    CriteriaTraditional OfficeFlexible Office
    Total Cost (CAPEX + OPEX)High initial CAPEX, variable OPEX managed internally.Almost zero CAPEX, predictable OPEX in a single invoice.
    Contract FlexibilityLow. Long-term contracts (3-10 years) with penalties for early exit.High. Monthly or annual contracts with ease of scaling up or down.
    Implementation TimeLong (months). Requires searching, negotiation, design, construction, and fit-out.Immediate (days). Spaces are ready to move into.
    Included ServicesNone. The company must contract and manage all providers.All-inclusive (electricity, water, internet, cleaning, reception, furniture).
    Customization and BrandingTotal. The space is a blank canvas for the company's culture and brand.Limited. The private space can be customized, but common areas are shared.
    Networking OpportunitiesLow. Limited to the company itself.High. Constant interaction with a diverse community of professionals.

    The Current State of the Office Market in Spain

    The decision depends not only on the characteristics of each model but also on the market context. A recent analysis of the sector in Spain reveals clear trends that are shaping demand.

    Far from disappearing, the office remains the central axis of corporate strategy. According to JLL data, 85% of employers in the EMEA region want their teams to work in the office most of the week by 2030.

    However, the way that space is used is changing. The demand for flexibility is undeniable: a JLL survey from February 2025 shows a moderate increase in preference for flexible solutions over traditional ones.

    This trend is reinforced by the strategies of the companies themselves. More than half of respondents in EMEA (53%) already use coworking as part of their real estate portfolio strategy, and 38% plan to increase their percentage of flexible space.

    [Source: Flex Office Market_Q2] Ask for the full report here