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 Offices
Leased offices are generally based on a building lease contract governed by the Act on Land and Building Leases in Japan.Contracts typically range from one to several years and are intended for long-term use, with periodic renewals.
This type of contract offers the following characteristics:
"Ideal for establishing a long-term base
For companies aiming for business stability, a leased office is suitable as it allows the establishment of a permanent base.
Long-term use helps build stronger relationships with the local community and clients.
High degree of customization
You can freely design interiors and select furniture, enabling you to create a workspace that matches your brand image.
However, this also means higher initial costs and more setup time.
Enhanced security setup
By installing your own security systems, you can create a tailored environment for information protection and safety management.
Features of Rental Offices
As mentioned earlier, rental offices are typically based on short-term contracts, with usage ranging from a few months to about a year.
This contract type offers the following features:
Ideal for short-term use
Perfect for project-based work or startups, rental office contracts are easy to terminate once the usage period ends.
Ready-to-use convenience
Since the necessary office facilities are already in place, business operations can begin immediately after signing.
This setup significantly reduces initial costs, which is another key advantage.
Flexible contracts
You can sign a contract for only the period you need, making it easy to relocate or resize your office in line with business expansion or downsizing.
Comparison of Initial Costs: Considering Cost Efficiency
Initial Costs for Leased Offices
When signing a lease for a traditional office, substantial upfront costs are involved, such as security deposits, key money, and guarantee fees.
In addition, costs for interior renovations and purchasing office furniture can add up, making the total investment quite high.
For companies planning to use the space long-term, this may be a worthwhile investment. However, for short-term use, the financial burden can be significant.
Initial Costs for Rental Offices
"In contrast, rental offices typically require only basic contract fees and a small deposit.
Compared to leased offices, the initial cost is significantly lower.
Since the space is already furnished and equipped, there's usually no need for additional setup expenses."
This makes rental offices an especially cost-effective option for startups and new business ventures with limited budgets.
Differences in Convenience: Accessibility and Location
Location of Leased Offices
Leased offices are often located in urban centers 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 central business hubs such as Akasaka, rental costs can become a significant financial burden.
Convenience of Rental Offices
Rental offices are frequently located near train stations or in bustling commercial areas, offering excellent accessibility.
Many also provide addresses that can be used for corporate registration, enhancing the credibility of your business.
With rental offices, it's possible to find properties that offer a well-balanced combination of prime location and affordable pricing.
Whether to choose a rental office or a leased office depends on your business purpose and overall plan.Which Should You Choose?
Contract Type & Suitable Use Cases |
Contract Type |
Rental Office |
・Short-term projects or startup businesses
・When you want to minimize initial costs
・When you need ready-to-use facilities and infrastructure |
Leased Office |
・When a long-term business base is needed
・When you want to freely design interiors and layout
・When you want to install a custom security system |
"Understanding the differences between rental offices and leased offices is key to choosing the right option for your business—and ultimately, to achieving success.
For example, rental offices are ideal for short-term projects or startups, as they offer lower initial costs and come fully equipped with essential facilities.
On the other hand, if you're aiming to establish a long-term base or prefer to design the interior and layout freely, a leased office may be the better choice.
By thoroughly understanding both options, comparing cost-effectiveness and convenience, and aligning your choice with your business plan and budget, you can make the most suitable decision.
If you’re looking for an office in the Akasaka area, we highly recommend THE BLOOM AKASAKA for its excellent balance of cost performance and convenience."