Which is Better for Your Business—A Serviced Office or a Traditional Office?

The way we work and the places we choose to work have been changing rapidly in the last few years. No longer is it necessary to work in a dingy, depressing office in a cubicle farm. Instead, offices have become modernised with open plans and more.

Many companies continue to work in a traditional office space. However, these days, there’s also the choice of working out of a serviced office.

When it comes to choosing an office for your business, which is better—a serviced office or a traditional office? How do you choose between the two?

In this article, we’ll take a look at the pros and cons of a serviced office and a traditional office. This way you’ll be able to make an informed decision on which type of office is best for your business.

The Traditional Office

A traditional office is an office space that is generally rented out directly by a landlord. This type of office solution also generally includes a long-term lease, which may be for one year or more. The rent is usually based on a per square foot price.

The lease for a conventional office space may include the stipulation that your business will be responsible for all building maintenance and repairs during your tenure. This can be quite expensive. And don’t forget to factor in the cleaning services. You’ll have to hire a crew to clean every day. That’s also expensive.

What’s more, it will be necessary to buy office furniture and equipment, as well as an office network. The business will need to pay for all utilities, too. This means you’ll need to deal with several invoices each month for various services, including cleaning, energy (gas & electric), water, phone & Internet, and more.

A traditional office space may also not be customisable. This means your business must conform to the space. You may also have to deal with the current colours in the space, rather than customising the décor and colours to suit your branding.

There are times when a company may find they’re not using all the office space. In that case, they’re paying rent for space they don’t need. This can become quite costly over time.

While a traditional office provides a long-term space for your business, it can be a very expensive solution. Plus, you’ll be stuck with a long-term lease. It’s possible to break a long-term lease, but the fees for early breaking will be high. The traditional office doesn’t provide much flexibility, either. If the business grows, you’ll be stuck in a space that may be too small.

Traditional office space pros:

  • Best choice for large, established companies that can deal with a long-term lease
  • Best for businesses that prefer to have more control over branding, company culture, and more in their office
  • Better for businesses that require a stable location, such as for a business headquarters

A conventional office cons:

  • Lack of flexibility; they usually come with a long-term lease that lasts for one or more years
  • High capital outlay for office furniture & equipment
  • Several bills to pay each month (rent, utilities, and more)
  • More difficult for startups and small businesses due to the costs involved

The Serviced Office

Serviced offices are another option that many businesses are choosing these days. The reason is the flexibility and ease of running a company from a serviced office.

If you’re not familiar with a serviced office, they are usually more flexible than a traditional office. The price of the office is generally calculated by the number of workstations needed. This means a business only pays for the actual space they need and use. They will not be paying for any unused space.

Serviced offices usually include a flexible lease, which offers a choice between short-term or long-term tenure. A short-term lease may be an excellent choice for a business that expects to grow. When they outgrow the space, the company can then request a larger space from the management. This can be done with a new lease. No matter the size of the company, a flexible lease provides more options than a traditional office space.

A serviced office also comes with an all-inclusive lease. This means the monthly rent covers everything from the office space, the utilities, and more.

When it comes to setting up the office, there’s no need to invest in expensive office furniture and equipment. These are included in the monthly rent. Most serviced office management companies also offer bespoke office spaces. This means a business has the option to brand the space with their colours and more.

Another plus for a serviced office is that the all-inclusive monthly fee includes more than just the utilities. The monthly fee covers maintenance and repair, cleaning, access to high-speed Internet and a secure network, office machines, a professional reception team, and more.

And we must mention that a serviced office also includes access to a professional meeting room. The meeting room is usually fitted out with all the latest tech needed for a successful meeting. This can include a whiteboard, plasma screens, and more.

We can’t forget to mention the additional perks that come with renting a serviced office. The all-inclusive fee also covers access to breakout spaces, onsite cafeterias, a fully stocked kitchen, onsite gym & showers, free parking, and more.

Serviced office pros:

  • Best for any type or size of business that needs flexibility and/or short-term lease options
  • The office space is completely serviced, which includes cleaning, maintenance, and more
  • One all-inclusive payment covers access to everything needed to run the business
  • Pay only for space and services used

Serviced office pros:

  • May need to share facilities with other companies (this can include office machines, restrooms, and more).

Summing It Up

As you can see, there are pros and cons to both traditional and serviced offices. However, it must be said that the serviced office usually offers the most cost-effective solution. This is because a serviced office includes everything from the furniture and equipment to valuable perks. A serviced office can save a business quite a bit of money over a traditional office.

So, why not consider a serviced office for your company? Let your company enjoy all the benefits that come with a flexible lease and everything needed to run the company in one monthly payment.

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