Serviced offices have become increasingly popular, especially in the UK due to the current market conditions. Businesses up & down the country are opting for the most cost-effective office solution and serviced offices are fulfilling their needs, offering not only better value for money but a practical and flexible solution for all but the largest of companies.
Data published by the Department of Business Innovation has shown there are over 800,000 businesses in London, which is more than any other part of the UK. Finding space can be quite a task, especially for new businesses that do not have the budget to pick and choose the most central locations.
However, we’ve got some good news for you! Serviced offices in the UK can provide you with an affordable solution allowing all types of companies to get settled in next to no time at all.
What is a Serviced Office?
Also known as ‘flexible office space’, serviced offices allow you to move into a space that is ready to use right away. With a serviced office, you are freed from the responsibility of maintaining the building, as well as benefiting from the many additional services offered, such as all-inclusive cleaning, electricity, phone, and internet services.
The main benefit of choosing a serviced office over a more traditional office is the availability of short-term tenancies. With serviced offices, short-term tenancies are very commonplace and offer an ideal solution for businesses who are entering a new market or industry, without committing to a long-term commitment.
International companies also regularly take advantage of serviced offices as it allows for greater experimental market expansion without committing to a traditional office. For larger multinational corporations, serviced offices help simplify the setup process of opening up a new office in a foreign market as leases can be negotiated much quicker than traditional offices.
Who uses Serviced Offices?
In the past, serviced offices were almost exclusively for smaller companies; however, as the internet has changed the way many companies do business, as well as the rising costs of traditional office rental, this is simply not the case anymore.
Today, there are various reasons to use a serviced office as well as many different types of businesses that make use of these facilities, we have broken down the list for you as follows:
Expanding your Home Business
Someone that has started their business from home and doesn’t wish to borrow or take a considerable amount of their savings to rent a property (or sign a long-term agreement), is much more likely to rent a small serviced office that is pretty much ready to use from the moment you sign your licence.
Small to Medium-sized Businesses
The same concept applies; with a serviced office, you can pick a space that is well & truly suitable for your company, but you also have the option to upscale at any time, and at short notice.
As a larger company playing it safe, serviced offices are a great option as you can always predict how much profit you will be earning in the future. Larger businesses also use serviced offices on short-term tenancies while they find an appropriate office to fix a long-term lease.
For a global business, it’s as simple as contacting serviced office providers in the UK, and telling them how much space you want and agreeing on the number of desks.
Once you have found the serviced office that’s right for you, all you need to do to is pay a deposit to get started. Many global businesses use this as a tool to get setup in capitals of countries around the world.
Businesses that require Temporary Office Space
If your business is in urgent need of office space, then a serviced office is often your best bet to get accommodation for your business.
- You want to rent an office in central London, which would be too expensive over the long-term.
- You simply cannot commit to a long-term contract.
- You are not sure what type of growth your company is going to produce in the long run, therefore, it would not be feasible.
- You want to occupy a temporary office while you have more time to look for the ideal location for your business.
If you are a new Small to Medium-sized business, it’s risky to sign a standard 12-24-month agreement, and as such, this is where a serviced office comes in handy.
Serviced offices are flexible, offering a monthly contract that reduces the risk of a loss as you have the flexibility to downsize any time you require.
Short Term Agreements
If you’re a large company that is looking to expand rather than commit to something long-term, the smarter business move is to test and see how well expanding does for you in the short term.
Businesses seem to be following this trend more often today, temporarily choosing a space until they have statistics showing them that it is profitable.
A Cost-effective Solution
If you’re a business that has been seen to be moving around frequently, then there is a chance that you will be asked for a higher deposit rate when it comes to leasing a traditional office, a serviced office can help make this route more cost-effective in the long-term.
Flexible Payment Plans
If you’re seeking to lease a traditional office, you are likely to be signed up to make quarterly payments but also with conventional offices you will be asked to put down a larger deposit – typically three months rent minimal upfront when you initially sign the contract.
Many serviced offices will have staff ready to help you settle into your new surroundings and get set up, so there is little to no downtime for your business. In most serviced offices, security is also present at the front door, and receptions ensuring your business, and its contents are secure.
One of the most common mistakes every new business makes is getting very excited about their new venture, and buying all the best equipment for your company before you have even started to get the project up and running. Quite often, what follows is a period of reflection, before regretting the money spent at such a crucial ‘make-or-break’ period in your businesses lifespan.
With serviced offices, you can help to mitigate this splurge as often, serviced offices come with tons of equipment as part of the package, providing desks, chairs, phones, internet and much more.
From our experience, the one thing we like about shared offices is that you are likely to be surrounded by other businesses, which can potentially allow your company to offer your services or strike a collaboration.
Less Admin Headache
As you are buying an all-in-one package, this will result in less paperwork for your admin staff and increase your business efficiency.
Pay-as-you-Go for Extra Facilities
Why pay money for an extra conference room or a meeting room if you will only use it once in a month? This is why shared offices work very well when you need a meeting room all you need to do is place a booking, and you will be saving money over the short-term as well as the long term.
Serviced Offices Frequently Asked Questions – FAQ
Q: What is the turnaround time for me to start using my serviced office?
A: If a serviced office is on the market and is being offered to you then it is very likely that you can get immediate access. As soon as you sign the licence agreement, you should be able to get started straight away.
Q: What happens if my company grows and I need more space?
A: This is one of the main reasons why serviced offices are successful. If your company needs more space, it is relatively easy to upgrade your space in a relatively short turnaround.
Q: What happens if my company isn’t doing as I expected – and I want to downsize into smaller space?
A: Good news. You can downsize at any time in most cases typically at the end of the calendar month.
Q: Can you customise your serviced office?
Most likely no – as you’re probably on a short-term lease and the serviced office owner is very likely going to keep their building and its offices uniform.
Q: When can I access my serviced offer?
You will find most serviced offices are open for you to access 24 hours a day, 7 days a week, however, keep in mind public holidays might vary and you might have a fixed time due to the security of the building etc.