Which is better for YOUR business, Serviced Office Space or Conventional Office Space?

 

Below is a list of some of the major differences offered by serviced office and conventional office space.*  For more information on renting office space in the UK and abroad please call 01932 834 720.

 

Cost

 

Serviced Office Space

Conventional Office Space 

All-inclusive monthly cost + IT and telecom packages

 

Cost broken down into rent + rates & services

 

Price is calculated per work station

 

Price is calculated per square foot

 

No dilapidation costs

 

Dilapidation costs must be paid

 

Overview: Serviced Offices are simply not as expensive as people tend to think! The problem is that when people try to compare the price of serviced and conventional offices they are simply not comparing like for like!  Serviced offices are a one-off, all inclusive price and are ideal for short-medium term leases, often helping businesses save money over what is often thought of as the cheaper conventional option. Searching for serviced office space is FREE through Easy Offices (01932 834 720) who get their fee from the office provider and not you the customer.  On the other hand for companies looking for a long term lease, say 3 years+, conventional leases will tend to be a more cost-effective option.  You can always search for your own conventional office space yourself but it is far easier to enlist the help of a commercial agent, however do note that this can add substantially to your costs, agents can ask for a finders fee which can amount to around 10% for the 1st years rent.

 

Lease Terms

 

Serviced Office Space

 

Conventional Office Space

Flexible, usually upwards of 3 months but shorter leases can be agreed

 

Long-term, 3 – 5 years minimum is standard

 

Notice period very short, just 1 month notice is often allowed for

Varies, break clauses can be negotiated and are often dependent on the current market strength

Up front deposit is minimal from just one month + no legal fees!

Deposit varies

 Overview: One of the main benefits of the serviced office package for businesses is the fact that the licence terms are so flexible.  Clients can move in and out of offices at remarkably short notice.  Additionally the deposit will always be minimal and there are no legal fees meaning that companies can reduce overheads substantially.  Conventional leases will be for the long term meaning that there is far less flexibility as companies will be committing to the space for a long period of time.  Notice periods and moving in times are also far longer to allow for the landlord to find alternative tenants as well as to allow time for initial fit out (if required) and moving equipment into the offices and post-lease dilapidations.

 

Flexibility of Office Size

 

Serviced Office Space

 

Conventional Office Space

Flexible, clients can expand or reduce space easily AND keep the same business address

Office Size Fixed

 

Size is calculated “per workstation” which is 70sq ft as standard but may vary

Size is calculated per square foot, 100sq ft is often allowed per person

The price paid is for your own office only and does not include common areas

The price paid is for your office plus extra sq ft allowed for common areas (corridors, toilets etc.)

 Overview: Serviced office business centres will typically leave an allocated space open for in-house expansion meaning that companies can expand internally without the cost and hassle of moving business address.  Additionally reducing space is also easy so companies do not end up paying for idle, unused space.  Serviced Office clients pay only for the space they need for their office.  On the other hand conventional leases are based on the amount of square foot taken and expanding or reducing this space can be difficult or impossible.  Companies may end up paying for space that is not being used and must also allow for additional space for communal areas.  

 

Facilities

 

Serviced Office Space

 

Conventional Office Space

 

“Ready to go” offices which are fully-furnished and fully-equipped, IT and telecom ready

“Empty shell” offices, unfurnished with no equipment and may require fit out of carpets etc.

Manned Reception

No reception

Secretarial and admin support

No additional business support

Hot-desking and virtual office services

No additional

Kitchen facilities, usually communal, water rates included in office costs

Not standard but sometimes allowed for at occupier’s cost

Toilets, usually communal

Toilets, usually private

Call answering and forwarding

No additional business support

Meeting and conference facilities usually available on site on demand

Meeting room can be built at occupiers cost

Showers often available on site

Not standard, showers can be built at occupiers cost

Cleaning, included in monthly cost

Not included in costs, usually arranged by occupier

 Overview: Serviced Offices offer far more onsite facilities than a conventional option.  Businesses are offered a “ready to go” office space that is already up and running and has everything that the modern company could require!  Business support is on hand to give additional help should you need it and all the little extras like cleaning are taken care of and included in your office price.  Conventional office facilities will tend to be rather basic, sometimes kitchen facilities will be pre-built into the space leased but all services are treated as chargeable extras.

 

We hope that you have found this overview useful! For more information on renting serviced office space in the UK or abroad give us a call on 01932 834 720 and we will help advise you on the best office option for your company!

 

*These are generalised lists that do not take into account the particulars of different office space locations nor the peculiarities of individual serviced office providers or commercial agents.  They are intended to give a general insight into the major differences between a typical example of the two types of office space and what they offer to businesses, for more precise information on particular office locations call 01932 834 720.

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