Preferred Office Network's Blog
Upcoming Lease Accounting Changes: What You Need To Know

By now you may have heard the Financial Accounting Standards Board (FASB) has issued new office leasing standards that will take effect in 2019. The standard states that businesses will have to report their leases as both assets and liabilities on their balance sheets. Office space will then be recognized as a debt instead of an expense. This change will affect businesses in different ways, and now is the time to strategically plan for the impact.

The new standard will only apply to office lease terms that are 12 months or longer, which makes shared office space with flexible lease terms an attractive option. Preferred Office Network has the most flexible lease terms in the industry with our No-Term agreement. With over 485 business centers in North America that offer fully furnished executive suites, private offices, meeting space, coworking space and more, there is no shortage of opportunity for your business to leverage a shorter lease term.

A helpful guide on how to prepare for the change can be found on FASB’s website, and we invite you to strategize directly with one of our Corporate Account Managers by calling 855-4-NOTERM or emailing info@preferredofficenetwork.com.

Coworking Evolves
Results from the 2017 Industry Financial Survey from The Global Workspace Association are in and it’s clear the coworking industry is evolving to meet the demands of today’s workforce. Recent Huffington Post article explains how one myth the survey helped to dispel is the notion that coworking space is open workspace without privacy or dedicated space. As the survey highlights, 80% of coworking spaces offer private offices! 
And, which types of employees and businesses use coworking space? GWA survey data indicates that 20% of users are freelancers, while the majority of users are small businesses at 47%. Mobile corporate users comprise the remaining 12%, and contribute to much of the recent growth in coworking space use. Surprised? Coworking has shifted its offerings to include a wider variety of spaces, and because private offices and meeting space are in the highest demand, coworking centers are adjusting to meet that demand, by adding more of these spaces.
Global Workspace Association (GWA) Executive Director, Jamie Russo, sums it up well.  “The future is about flexibility, and a lot of corporations are still trying to figure out what that looks like for them and how to logistically manage it. The trend is moving toward choice, but the biggest shifts will come from gathering data that helps us measure and improve future offerings. What we have discovered with coworking is that professionals need other brains. You simply can’t do great knowledge work alone.”
Preferred Office Network President, Kris Elliott, serves as a GWA Board Member and will be speaking at the upcoming Flexible Office Conference later this year.