What is a Serviced Office or Office Space?
Business organizations of all types are experiencing rapid change in a highly competitive marketplace. They started to rethink the way they managed their business and finding new working practises. This is what happened to the conventional office rental. The market was asking for flexible short term leases and this changing demand has emerged the serviced offices space idea.
It is now probably the fastest growing sector of the European and global property market. The rate of the growth of the Serviced Office industry has been nothing less than explosive over the past few years, although the global recession has steadied this growth over the past two years.
Serviced Offices are “ready to move in” offices with no set-up costs and long term contracts. Whilst costs may look high initially, the rent that you pay includes almost all the costs that you would normally expect to pay on top of rent in a conventional office. There are no additional start up costs or any other monthly running expenses such as electricity, cleaning, building maintenance, common expenses, insurance, utilities etc. the only additional cost on top of the rent is the telephone usage. Most Serviced Offices have an affordable monthly rate because they offer shared common facility areas with other businesses. The cost for using copy machines, meeting and conference rooms and kitchen facilities are also shared, at some centres it’s even included in the price!
A Serviced Office usually includes a fully furnished and equipped office with executive sitting, guest sitting, coffee table and filing cabinet, phone lines and phone, internet connection, all running costs (electricity, heating / air conditioning, cleaning, insurance, water rates), professional receptionist to greet clients and answer calls in the company’s business name, meeting room, even kitchen facilities (coffees, teas, squashes). All these and many more depending on the centre are included in the rent. In short with a serviced office you forget all the bills and at the end of the month you pay “one all inclusive bill”.
But the major difference between a serviced office and a conventional one is the length of the lease. A serviced office can be leased for a minimum of 3 months, up to several years while a traditional office has a much longer lease.
Another reason serviced offices are consider a better solution is that they provide to the company the flexibility to shrink or expand.
Serviced Offices are ideal for professionals, such as attorneys and therapists, or small companies with one to three people and offshore companies. They are also ideal for start-up companies and just as suitable for firms that would like to scale back their operations or establish a branch office.
Serviced Offices is a new style of office for those wishing to keep initial investment costs down and get their office set up smoothly and with just the essential items.
Taking into consideration of what is included in the rent price plus the fact that no capital investment is needed, like furniture, cabling, equipment, electricity etc your expenses are a fraction of what they would be in a traditional office environment. According to a study by the Charter Institute of Purchasing (CIPS) renting a serviced office can save you up to 62% of the costs of conventional.
So moving your business into a serviced office can be a cost-effective solution!