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 0800 085 5050.
Cost
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Serviced Office Space |
Conventional Office Space |
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All-inclusive monthly cost + IT and telecom packages
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Cost broken down into rent + rates & services
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Price is calculated per work station
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Price is calculated per square foot
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No dilapidation costs
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Dilapidation costs must be paid
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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 (0800 085 5050) 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
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Serviced Office Space
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Conventional Office Space |
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Flexible, usually upwards of 3 months but shorter leases can be agreed
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Long-term, 3 – 5 years minimum is standard
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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 |
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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
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Serviced Office Space
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Conventional Office Space |
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Flexible, clients can expand or reduce space easily AND keep the same business address |
Office Size Fixed
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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 |
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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
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Serviced Office Space
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Conventional Office Space
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“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. |
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Manned Reception |
No reception |
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Secretarial and admin support |
No additional business support |
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Hot-desking and virtual office services |
No additional |
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Kitchen facilities, usually communal, water rates included in office costs |
Not standard but sometimes allowed for at occupier’s cost |
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Toilets, usually communal |
Toilets, usually private |
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Call answering and forwarding |
No additional business support |
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Meeting and conference facilities usually available on site on demand |
Meeting room can be built at occupiers cost |
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Showers often available on site |
Not standard, showers can be built at occupiers cost |
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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 0800 085 5050 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 0800 085 5050.
Are you confused by all the latest office jargon? Head to our useful Glossary of Flexible Office Space terms, whether it’s hybrid, hotdesking or coworking we’ve got you covered!