The world of work is changing and plenty of flexible workspace options exist to keep pace with this new, dynamic environment. Each space gives businesses access to affordable offices, without any restrictive rental agreements in place.
While coworking is an increasingly popular option, a serviced office space could be a viable alternative for your business.
What is serviced office space?
A serviced office space is a pay-as-you-use office space managed by an external operator. This operator rents individual rooms and floors to businesses and manages the space.
A serviced office space is furnished and comes ready-equipped with the internet, phone lines, and other key amenities, such as printers.
The rental agreements are also more flexible than those for a traditional office and usually available on a monthly rate.
Serviced offices are sometimes called business centers, executive suites, or managed offices.
Benefits of serviced office space
- Flexibility: Serviced offices provide flexible rental terms. Many spaces offer contracts on a monthly basis. This allows you to scale your required office space as your business grows. Plus, you only pay for the space you need.
- Cost: Serviced office spaces are usually cheaper than a conventional office. This is because you share the space and its resources with other companies. They are also furnished with the necessary amenities in place. So, you can start work without any major operational or set-up costs. However, the exact cost depends on the size and quality of the space, the services you require, and the space’s location.
- Location: A serviced office space allows you to open an office in a desirable location, without an expensive and restrictive rental agreement. This allows you to try out different locations until you find the right spot for your business, giving you unprecedented access to new markets.
- Minimal set-up times: If you want to open an office in a location quickly, a serviced office is a ready-to-go option so you can move in with minimal downtime.
- Services: These spaces offer a range of services and perks, including bookable meeting rooms, kitchen facilities, and breakout spaces.
- Zero administration: Most serviced office spaces also provide administrative and cleaning staff, saving you from the expense and hassle of recruiting new staff members.
- Zero maintenance: You are not responsible for the management of your serviced office space. So, you do not need to spend your time and money maintaining your office amenities.
- Networking: If you use a serviced office space, you will share the space with other tenants. This could provide you with the opportunity to network with other companies.
- Brand image: A serviced office space allows you to work in a building with hi-tech facilities in a desirable location, which might otherwise be outside of your budget.
How is it different from coworking?
A serviced office space offers many of the same benefits of a coworking space including business support, shared facilities, and flexible rental options.
However, there are some key differences between coworking spaces and serviced offices.
Coworking spaces tend to encourage a sense of community. As such, they are predominantly highly shared spaces, with businesses working in large, open-plan spaces to cultivate creativity and collaboration.
A serviced office space provides your business with more privacy, which may be important if your business has strict confidentiality terms. However, this privacy may come at an increased cost.
Serviced offices also predate coworking spaces. The first serviced office spaces appeared in the 1960s where legal attorneys worked together in furnished spaces, sharing secretarial services and other building expenses.
Coworking spaces only started to appear in the mid-2000s. However, they have snowballed in popularity with more than 25,000 spaces predicted to open by the end of 2022.