people working in serviced office

What is A Serviced Office? 

As a small business owner, you’ll encounter an important decision: choosing between a serviced office and a leased office space. A serviced office is like a ready-to-go commercial property, complete with office furnishings and IT infrastructure which is why it is particularly attractive to start-ups and small businesses looking to transition from working at home to an affordable coworking environment. 


In most cases, serviced offices are rented from a management company responsible for maintaining and managing all the essential amenities in your office space. Conversely, leased offices are typically leased directly from a commercial landlord.


Eager to discover the advantages and disadvantages of working in serviced office spaces? Continue reading to learn more!


What is a Serviced Office?


A serviced office, also known as a managed office, is a rented office space that comes fully furnished and ready for immediate occupancy. In contrast to traditional, long-term office leases, serviced offices provide the flexibility of short-term rentals with an all-inclusive fee.

These offices are equipped with all the essentials for businesses to start working right away, including desks, chairs, storage, printing facilities, and a fast, reliable Wi-Fi connection. Many serviced offices also offer additional amenities such as a staffed reception area, kitchen, and on-demand access to shared conference rooms, breakout areas, and event venues.


Pros of Serviced Offices


Startups and small businesses typically seek budget-friendly, short-term lease options to establish their business presence until they can comfortably afford a traditional office lease from a commercial landlord. 


Short-Term Cost Efficiency

Serviced offices come fully furnished and equipped with all utilities, ready for immediate use. Your all-inclusive rental fee covers general expenses, providing transparent pricing. Usually, you’ll only incur additional expenses for IT and telecommunication services.


Networking Opportunities

Serviced office complexes often accommodate several tenant companies, creating a conducive environment for you to connect with potential business partners and explore networking opportunities that may lead to cross-selling products and services.


Ready for Immediate Use

Serviced offices are move-in ready, furnished and equipped with essential technology for a thriving business. Furthermore, many business locations offer shared amenities such as reception areas, meeting rooms, conference spaces, and kitchen and lounge areas.


Beneficial Amenities

Serviced offices typically provide a range of beneficial amenities. Standard offerings often include features like private kitchens and staffed reception areas. Moreover, they may also offer specialised facilities such as IT support and conference rooms equipped with AV technology.


Maintenance and Repairs

The serviced office manager is accountable for the cost and time involved in maintenance, upkeep, and cleaning, typically covered by your rental fees. In cases of significant repairs, such as fixing a leak, the office provider may even offer temporary office space while the necessary work is in progress.


Cons of Serviced Offices

Now that we have outlined the benefits of managed offices, particularly for small businesses and startups, it’s important to understand some of the disadvantages which include reduced privacy and higher costs for larger corporations. Discover more cons of serviced offices here. 


Restricted Personalisation

One notable drawback of serviced workspaces is the limited scope for personalisation. These offices come pre-designed and furnished, granting businesses minimal control over the arrangement and styling of their workspace. This can pose a challenge for companies with distinctive branding or specific operational needs.


Privacy Shortcomings

Serviced offices are frequently shared workspaces, potentially offering businesses less privacy compared to traditional office setups. This can be a drawback for companies that require a high level of confidentiality, such as legal or financial firms.


Higher Costs

For larger companies with more than 30 staff, long-term rental costs may potentially be higher. However, the cost scenario depends on the specific serviced office provider and available space. Some providers, especially those offering large team spaces and additional offices, could accommodate companies with over 30 employees while maintaining cost-effectiveness. When evaluating the cost-effectiveness, considerations like photocopying and network printing services should be taken into account. The reduced capital expenses could offset rental costs.


Storage Constraints

In addition to other downsides of serviced office spaces, limited storage capacity can be a disadvantage for businesses in need of ample storage or inventory space. This can be particularly challenging for companies requiring specialised storage solutions, such as temperature-controlled rooms.


In Conclusion

Serviced office arrangements offer distinct advantages, primarily by significantly lowering overhead costs in contrast to leasing dedicated space. Business owners are relieved from the burden of investing in equipment and furnishings. Startups and small businesses should weigh the advantages and disadvantages of serviced offices to ensure they choose the most suitable option tailored to their specific requirements.


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