Factoring in the cost of dilapidations to rent for serviced offices is likely to be a tricky accounting exercise - e.g. how far into the future should one look when estimating repair costs? How much should be budgeted for contingencies?
Further, how do you account for tenants with unique fit-out requirements which may fall outside 'normal' financial analysis? One way of dealing with it would be through detailed schedules of condition. However, where the occupation is short-term, which tenants will want this up-front expense?
Link to related article: www.bisnow.com/london/news/commercial-real-estate/coworking-is-killing-off-dilapidations-so-who-should-foot-the-bill-100494?utm_source=outbound_pub_55&utm_campaign=outbound_issue_32007&utm_content=story&utm_medium=email&tceid=5d7b9ded989b6f0c1831c0e7