Lock-in Periods: The Clause That Decides What Your Office Really Costs

Lock-in and notice are two different numbers, and confusing them is how a six month commitment turns into eight. What is normal, what to ask for, and what you can actually negotiate.

Dexwork Editorial
··3 min read
Lock-in Periods: The Clause That Decides What Your Office Really Costs

Two numbers in every workspace agreement decide how trapped you are, and founders regularly read them as one.

Lock-in is the minimum you pay for, even if you walk out in week two. Notice is the warning you owe before leaving, and it usually starts only after the lock-in ends.

Six months lock-in with two months notice is an eight month commitment. That is the sentence to remember.

What is normal in India

What you takeUsual lock-inUsual notice
Day passNoneNone
Hot desk, monthly1 month or none1 month
Dedicated desks, small team3 to 6 months1 to 2 months
Private cabin6 to 12 months2 months
Managed office12 to 36 months3 months
Conventional lease12 months inside a 3 year term3 months

What it is really costing you

Take eight seats at ₹8,499. A six month lock-in with two months notice means that on the day you sign, you have committed ₹5.4 lakh. Not ₹68,000 a month with the freedom to leave. ₹5.4 lakh.

That is not an argument against signing. It is an argument for knowing the figure before you do, because it belongs in your runway calculation, not in a folder.

What operators will actually move on

More than founders expect, and less on price than on terms. In our experience the order of what you can win is roughly this:

  1. A shorter lock-in. Easiest ask, especially in a centre that is not full. Three months instead of six is a very common outcome.
  2. Free months. Operators protect the headline rate but will often give the first month free rather than cut it.
  3. Meeting room credits. Costs them little, worth a lot to you at ₹1,800 an hour.
  4. An expansion clause. The right to add seats at today's rate. Free to give, valuable to hold.
  5. The rate itself. Hardest, and only really moves at six seats or more on a longer term.
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Four things to read before you sign

When does notice begin? During the lock-in or after it. This single sentence changes the total commitment by months.

What happens if you shrink? Growing is easy. Ask what it takes to give back three seats, and get the answer in writing.

Can they end it early? Many agreements let the operator terminate on short notice while you are locked in for six months. If the clause is one sided, say so and ask for it to be matched.

Who is the agreement with? Sometimes the brand on the door is not the entity holding your deposit.

When a long lock-in is the right trade

If you are certain of your headcount and your city, a twelve month commitment is worth real money: the discount is usually 5% to 15%, plus better terms on everything else.

Certainty is the thing you are selling them. If you have it, charge for it. If you do not, pay the premium for flexibility and do not pretend otherwise.

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