The pandemic has led many businesses to revaluate their workspace requirements and their real estate strategy. Predictions that the pandemic could lead to the “end of the office” have been proven to be way off the mark. Currently there are many positive vibes around one of the most significant trends in the commercial real estate market - the growth of flexible workspace. If you are not familiar with the term “flexible workspace”, think of “serviced offices” (like Regus, WeWork, The Office Group etc.) and you’ll be on the right track.
During the last five years the number of flexible workspaces globally has grown by 150%, with c.2,300 new flex spaces opening, on average, every year. Despite the challenges of COVID-19 and, in fact, partly because of them, the serviced office market is now picking up significantly and the outlook is extremely positive.
In this article we’ll look at what a serviced office is, examine the key benefits and look at what sorts of businesses are being attracted to them.
What is a serviced office?
A serviced office is a fully furnished office space that’s ready to move into and available on a flexible short or medium term rental agreement. In a serviced office an operator takes on the responsibility of maintaining the building and usually provides additional services and facilities. A lease on a serviced office is generally shorter in term, for a few months or longer, but it allows businesses the flexibility to expand or reduce their space depending on their requirements thereby paying only for the space required.
Serviced offices vary in size from single desks right up to whole buildings and everything in between. Often serviced offices contain shared amenities like kitchens, breakout space, outdoor space, cycle racks and event space, meaning that you have access to infrastructure you may not otherwise have been able to afford.
Key benefits of renting a serviced office
1. Flexible, short-term agreements for maximum agility
In a word - flexibility. Flexibility is the primary benefit of renting a serviced office. Firstly, you have flexible terms whereby you can rent an office from just one month through to two years or more. Secondly, you only pay for the space you need, you have flexibility to expand or contract the space you require as needed. Thirdly, you have the flexibility to choose the type of workspace that suits you best, enabling you to work how you want, where you want and when you want.
2. Cost effectiveness means great value workspace
Serviced offices can help you achieve savings, preserve capital and reduce overheads. You only pay for the space you need. You don’t need to budget for significant fit-out, set-up costs or capital expenditure. Unlike leasehold property, there are no dilapidations costs and no obligation to return the office to its original state upon exit.
3. Access to all the facilities you need for smooth business operation
In a typical serviced office for rent, you’ll find that utilities, internet, phones, kitchens, cleaning and maintenance services are all provided. Nowadays serviced office providers offer a long list of amenities which go way beyond these basic facilities (see point 10).
4. No building maintenance costs or headaches
In a serviced office you are not responsible for the maintenance of the building, so not only do you avoid the costs of maintenance , you avoid all the headaches that go with it.
5. Administrative support for better productivity
Nearly all serviced offices for rent provide administrative support to help your business run smoothly. IT support will keep your business on-line, a reception team will manage comings and goings and mail handling services are the norm.
6. Simple budgeting aids financial planning
Serviced office costs are typically covered by a simple all-inclusive monthly charge. This is usually expressed as a price per workstation, per month. This helps your business with financial planning and avoids dealing with a pile of invoices for your various office charges.
7. Immediate availability avoids downtime
Serviced offices for rent are quick to find and are easily accessible. They are ready whenever you are. You can sign the deal one day and start working there the next. The days of finding temporary space whilst your office is being fitted out is a thing of the past.
8. Networking and collaborative opportunities
Buildings that feature serviced offices will usually have several other businesses based there. Shared spaces like breakout areas, dining areas, gyms and outdoor space all present excellent opportunities to network.
9. Open up global markets with low risk
Flexible workspace is a global market. You can rent a serviced office anywhere in the world to help you branch out into the local market quickly and with low risk. Using a reputable broker like Office Freedom, you can access the world of serviced offices for rent from one point of contact and leverage expert local knowledge.
10. Fabulous amenities that attract and retain staff
If you thought serviced offices were like the grey mundane offices of yesteryear, think again. The range of amenities available is staggering. Yes, most offices nowadays have a kitchen, free coffee and meeting rooms but what about: phone booths, gyms, showers, bike racks, bar lounges, roof terraces, cafes, event space, wellness classes and pet friendly policies? Take a look at our pick of the best serviced offices in London and you’ll be blown away.
11. Work near home for a better work-life balance
Serviced offices are at the forefront of the drive to facilitate remote and hybrid working, providing workspace near home. For businesses downsizing from large city centre HQs, serviced offices provide an ideal flexible option. For employees unable to work effectively at home, working from a serviced office nearer to home is a great solution.
12. Sustainable healthy workspaces for improved wellbeing
Serviced office operators have been some of the quickest to adapt their premises to a sustainable agenda. And the wellbeing of occupiers has long been a central focus for serviced office providers many of whom offer fitness classes, wellness events, and community programmes to complement their ergonomically designed offices.
Who uses serviced offices?
Start-ups and Entrepreneurs - Start-up businesses and entrepreneurs have always been drawn to serviced office spaces. The ability to rent short term and avoid long term contracts and hidden costs has always been appealing.
Scale-ups and growing businesses – Start-ups who have moved into the scale-up phase need to find suitable offices quickly and workspace that has scope to expand. Established businesses that have outgrown their leasehold space are also drawn to serviced offices.
Businesses expanding into new markets – Businesses that seek expansion into new territories rely on serviced offices to provide them with a quick and low risk base when exploring new regions.
Project Teams – Project teams that need a fully resourced space to fulfil a contract or task are an ideal match for serviced offices.
Corporate and Enterprise business - Large corporate enterprises are utilising serviced offices to fulfil a range of requirements. Some are embracing the flexibility and agility that serviced offices provide. Others are using it to support a hub and spoke real estate strategy.
Find a serviced office for rent to suit your business here.
Examples of serviced offices across the world
Serviced offices in Park House in Park Street , in London’s Mayfair, occupy the top two floors of this modern development in the heart of the West End. The building is finished to an incredibly high specification and benefits from an abundance of natural light due to the double-height curved glass roof. All offices are furnished and serviced to the highest standard.
Part of a global network of workspaces where companies grow together. At this convenient Park Avenue South address, discover floors of coworking and private offices that cater for all your needs. Designed to promote productivity whether you’re a team of one or 100, and month-to-month flexibility means your space is just as agile as you are. One all-inclusive rate makes things easy.
This vibrant Bonham Strand flexible workspace offers close proximity to Sheung Wan Station, Macau Ferry Terminal, and Hong Kong’s Central Business District. Spanning 15 floors in a 29-story tower, this dynamic office features art-filled lounges, modern conference rooms, and sleek private offices that encourage uninterrupted productivity.
This serviced office for rent in Sydney is situated in the heart of the city centre. From the centre’s 26th floor offices, the 360-degree views to Darling Harbour and Sydney’s skyline are breath-taking. The Market Street location is a diverse and ideal location, which is known as a hub for both business and pleasure.
Find a serviced office anywhere in the world here.
Let Office Freedom help you find your next office
To find out how much Office Freedom can help you find the right office solution for your business, contact one of our experienced property consultants today:
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