Why does a Serviced Office cost so much? It may be easy to draw the conclusion that a Serviced Office is expensive, when the rented floor area is compared to the advertised commercial lease cost of a larger office space. However, it must be remembered that a commercial lease usual commitment is 3 years (occasionally 1 year may be possible), plus there are legal costs and outgoings typically to be paid. A Serviced Office can usually be rented on a one month notice basis, greatly reducing financial risk. Plus the benefits of common facilities (Meeting Room, Kitchen , Internet, Parking), which may all be included. Not to forget the benefit of a busiess address of suitably professional standing. As a means to reduce cost, a serviced office provider may be open to two businesses sharing a serviced office (either the space, or days in the week), provided one of the businesses takes on the contractual responsibility. Living Workspace has the flexibility to consider options of this type. Please feel free to discuss these options or others, with us.
Leasing a serviced office versus renting your own office
Moving out of the home office or expanding your business can make the decision of leasing office space or a serviced office a challenging one.
For the small to medium business owner, running a business and looking for appropriate office space can be a time consuming exercise. Factors to consider when you are ready to move out of your home office or set up your own office include:
- Researching and viewing appropriate office space
- Liasing with real estate agents
- Negotiating lease terms
- Setting up your new office space
- Researching and contacting phone and internet providers
- Sourcing/organising your IT infrastructure
- Sourcing/organising office furniture
- Reviewing energy providers/connecting electricity
- Maintenance charges – air conditioning etc
- Cleaning costs
- Cost and maintenance of kitchen utilities – water cooler, coffee machine, fridge, microwave etc
Budget for expenses and outgoings for a traditional 2 – 3 year lease term office. Add the two month’s rent bond payment, solicitor’s fees to review the lease contract and costs associated with employing staff.
Inspect the facilities and take into account the above factors and if it is the right fit for you. Depending on the stage of your business, being locked into a long term lease contract or not having the flexibility to grow or contract when you lease the space directly can make the decision of leasing a serviced office an easy one. Serviced offices are becoming increasingly popular due to their professional corporate image, convenience factor and fixed pricing structure.
The good news is that a corporate style serviced office can offer an attractive and productive work environment, with a sense of community and that familiar corporate ‘vibe’ while providing a cost effective solution for the short term and possibly long term when your business needs change.