Rental affordability solutions for startups and SMEs

Abstract: This is the first study within the area of rental affordability. It is an important issue to address since many startups and SMEs are struggling with finding suitable workspace in Stockholm. This study contributes to a better understanding of different aspects of affordability. Moreover the aim is to enhance the understanding of different perspectives of rental affordability for these companies when choosing office space. When defining rental affordability it has to be a relative concept within a certain context since it includes the perspective of both tenants´ preferences and market related factors. The proposed definition of affordability solutions is based on theory and empiricism, which are found through a literature review and a qualitative method. Since there is lack of consistency in research papers of the definition of affordability, and no previous definition of affordable solutions within this context is found, this method could define what factors affecting tenants when choosing office space. The qualitative method together with a literature review resulted in a pre-study, which was supposed to combine different aspects of affordability and further suggest how to construct a rental affordability index. Methodological triangulation increases the originality of this report, since the approach involves three aspects, which together highlight what dimensions should be evaluated when constructing an affordability index. A number of benefits from affordability solutions for startups and SMEs are presented in the results. Affordability solutions are intangible factors, which in several ways benefit property owners, tenants and society. However the office market is changing and tenants do not have the same preferences as before. Thus, it could be asked whether the recent office trend is just a trend or if it is here to stay. This report provides a starting point for such discussion, which is also proposed to consider when constructing a rental affordability index in further studies.