When considering a flexible workspace solution, a serviced office can be an ideal choice. These spaces offer access to a private office while providing shared amenities, and their all-inclusive payment structure simplifies cash flow management.
This guide delves into everything you need to know about renting serviced offices, from what’s typically included to how to pinpoint the perfect space for your business.
What Makes an Office a ‘Serviced Office’?
A serviced office is a type of commercial property rented to desk-based organisations. Within a serviced office building, multiple companies share the premises, each having their own private office or dedicated desks within a larger space.
The building’s amenities – such as the kitchen, breakout areas, meeting rooms, and sometimes even meditation rooms – are shared among all occupiers. Serviced offices are typically fully furnished and come equipped with Wi-Fi, allowing businesses to get up and running immediately upon moving in.
The History of Serviced Offices
Serviced offices have been around for decades. However, they’ve truly gained significant attention from business owners over the last 10 years, with even more accelerated growth recently. Initially, serviced offices were primarily utilized by startups and small businesses seeking low-cost office space with minimal risk.
Today, serviced offices cater to a wide range of business types, from SMEs to larger, established corporations. The first-class amenities and flexible contractual terms appeal to organisations across various sectors, facilitating financial agility. Research by FreeOfficeFinder indicates that the number of serviced office buildings in the UK has risen by 70% since 2000.
They are an excellent option for anyone looking to establish a presence in a prime location without committing to a long-term lease. Of course, serviced offices aren’t for everyone, making it crucial to understand both their advantages and disadvantages. In some cases, a traditional flexible lease might be more suitable.
Serviced Office Advantages
- Quick and flexible setup: Enables businesses to get operational rapidly.
- Fully furnished: Reduces initial setup costs and effort.
- Extensive amenities: Access to a wide range of facilities within the building.
- Prime locations: Often situated in desirable business districts.
- Low-cost/low-risk: An affordable way to test a new market or location.
- All-inclusive billing: Simplifies budgeting (though meeting room usage may sometimes be charged separately).
- Talent attraction and retention: High-quality amenities can appeal to employees.
- Networking opportunities: Shared environments can foster connections with other businesses.
Serviced Office Disadvantages
- Limited lease length: May not be suitable if you require a very long-term (e.g., 5+ years) agreement.
- Limited space availability: The building might have restrictions on the amount of space available for significant expansion.
- Less “ownership” feeling: Branding in corridors and reception areas is often not possible.
- Inability to make changes to fit-out or design: Customisation options may be restricted.
Who Are the Larger Serviced Office Providers?
A serviced office provider (or operator) is a company that manages and runs serviced office spaces. There are major global providers alongside smaller, independent businesses.
- Regus: One of the most significant flexible workspace providers, part of IWG, which also owns brands like Spaces and No18. IWG boasts over 3,000 locations in more than 120 countries.
- WeWork: A major player founded in 2010, offering flexible workspaces for businesses of all sizes. WeWork operates over 700 locations in more than 30 countries.
- Other notable providers in the UK include Orega, The Serviced Office Company, and Mantle Space.
Are Serviced Offices for Everyone?
Serviced offices have broad appeal:
- Startups and small businesses: Benefit from a low-cost, quick way to start, with scalability as their workforce grows.
- SMEs: May find it easier to attract and retain talent due to good amenities. The social aspect, with networking and social events, can also encourage collaboration among occupiers.
- Large multinational companies: Frequently use serviced offices as satellite locations for specific teams or projects.
How are Serviced Offices Priced?
Serviced offices are typically priced on a desk-by-desk or square foot basis. For example, a 5-person office in a prime London location like Covent Garden could cost approximately £3,500 per month. Online pricing tools, such as those offered by FreeOfficeFinder, can help estimate costs for specific locations.
The price of a serviced office depends on several factors:
- Location: Prime areas command higher prices.
- Amenities: The range and quality of included facilities.
- Quality/Grade: Higher-spec “Grade A” offices are generally more expensive than older “Grade C” offices.
The cost usually includes essentials like electricity and internet, but it’s crucial to confirm this. Always ask your serviced office broker or check your rental agreement. Meeting room usage is also sometimes an additional charge, so clarify this before committing.
What Came First: Serviced Offices or Coworking?
Serviced offices arrived first, with coworking evolving from this model. The first known coworking space, C-Base, was founded in Berlin in 1995 as a hub for coders to meet and collaborate. Since then, the coworking concept has expanded globally.
Coworking spaces typically feature open-plan, collaborative work environments. Desks are often more affordable, making coworking popular with freelancers and startups. Like serviced offices, they also provide shared amenities such as meeting rooms and breakout spaces.
Whether you’re seeking coworking desks in a relaxed environment or a serviced office with a more corporate appeal, a flexible office solution exists for virtually every business need.