Whether your business is looking for its first office or ready for an upgrade, serviced office space is an affordable and realistic option, regardless of whether you need one desk or one hundred. It strikes exactly the right balance between keeping your costs as low as possible, and portraying the right image to your customers. For large and small businesses alike, the benefits are endless and all the costs are included in one manageable payment so you know exactly what you have to pay each month.
The advantages of serviced office space over traditional property are set out here:
Serviced offices | Traditional commercial property |
| Usually furnished and kitted out with a maintained telecoms infrastructure, broadband and IT support, included as part of the price. | You will usually need to pay for installation of your telecoms and IT infrastructure separately, as well as ongoing maintenance and broadband costs. |
| Desks, chairs, furnishings, decoration and refreshment facilities usually included as part of the price. Decoration in many buildings is high-end, perhaps beyond what your average SME could afford to splash out on. | You will need to pay for furniture, decoration and refreshment facilities for your staff. You will also need to replenish these when they wear out. |
| Utility costs such as heating and lighting usually included as part of the price. | You will have ongoing utility bills in addition to your monthly, quarterly or annual rent. |
| Often staffed with cleaners and receptionists, again included as part of the price. | You will need to pay for your own cleaning, or do it yourself! You will also need to hire a receptionist if you need one, and ensure they have an area that is suitably equipped to work from. |
| Allow users to pick and choose the services they need, so users don’t pay anything for services they wouldn’t use. For example, large meeting rooms may be available for hire at a small extra charge when required. | If you need meeting room facilities from time to time, you will have to rent an office with that extra space – or take your clients out and pay for it separately. |
| Day-to-day management of the property, including repairs and decoration, is dealt with. | You will usually be responsible for the cost of repairs to the heating, plumbing and other systems if they break down. You will also need to redecorate at agreed interval, and almost certainly before the expiry of the term. |
| You can usually move in at short – or with no – notice. | You will have to wait for the lease to be finalised which can often take 4-6 weeks. |
| You can create smaller operations in a number of locations allowing you to ‘flex’ the market, rather than having to settle for one centralised office. | You could create a number of smaller branches but you’d have the costs involved in a commercial lease to pay (see below) on every single one. |
| There is usually little or no tie-in, meaning less risk for cash-strapped companies. | You will usually be tied into 3-5 years minimum. Sometimes landlords allow a break clause after 1 year or 18 months, but often at a premium. |
| You can move and expand without incurring significant cost, delay or admin problems. | If you need to move, you may need to pay your way out of the lease. As well as redecorating, you’ll need to remove any equipment at the office and make good any damage caused. You might have to replace some of the landlord’s fixtures and fittings. You’ll also need to pay costs such as installation of IT and telecoms systems at your new premises. |
Are serviced offices more expensive than traditional commercial property?
The all in one serviced office packages sound like they ought to be more expensive than a standard commercial lease. In fact, they are usually more cost effective. The costs involved in managing a property with a traditional commercial lease include:
- Any rent down payment
- Sometimes agency fees to apply for the lease
- Solicitors’ fees to deal with the lease
- Insurance
- Cost to install telecoms and data infrastructure
- Utilities and services monthly payments
- Cost to redecorate at the end of the lease
- Cost of cleaning
- Cost of receptionist
- Cost to provide refreshments facilities
- Cost to remove equipment and put right walls etc at the end of the lease
Although costs vary of course, depending on area, building, number of desks taken and the length of occupation, like for like a serviced office space will usually always work out far more cost effective as all of the above costs are included or not necessary. Additionally, serviced office space is generally cheaper because less space is required, since the reception area and other common areas are shared. You won’t have to rent a property with additional floor space for meeting rooms either, since these are usually available when you need them at a small extra charge. This is far more economical than paying additional rent for a number of meeting rooms that aren’t used for most of the year.
Would serviced offices suit my business?
Serviced offices are often thought of as being best suited to start-ups and SMEs with a small budget, looking for accommodation that is effectively temporary. This is a myth! Although this type of office space is ideal for those businesses, larger businesses also use serviced offices. Some choose to move their whole operation into a serviced centre, perhaps taking the entire office for themselves with the provider running it just for them. Others create branches this way, allowing them additional locations to attract custom. If their business needs change – for the positive or negative – serviced offices can be expanded or dropped as required, with practically no cost.
Conclusion:
Once thought to be a temporary or basic option for start-ups and SMEs, serviced offices are now thought of as affordable and attractive permanent solutions to businesses of all sizes. The flexibility they allow, the cost effectiveness of everything being included and the high-end services that they provide, take all of the hassle and administration out of renting office space. With really attractive offices available, decorated to a standard that many businesses could not afford to match on taking a traditional commercial lease, it’s worth considering service offices as an option for your next move.