Serviced Office vs Coworking Space

Which is Right for you – Serviced Office vs Coworking Space

Whether you’re an entrepreneur, freelancer, micro business, start up or small business, it’s very important to think about where you plan to locate your business. As you grow, and your business develops you’ll likely look into multiple options for your business location.

Following the pandemic two of the most popular office space options today are coworking spaces and serviced offices.

The Differences Between Coworking Spaces and Serviced Offices

While working from home serves its purpose, both serviced offices and coworking spaces offer you the chance to work in a business environment. Allowing you to move from working remotely into a professional business space. Serviced Office vs Coworking Space both offer the benefits of having a professional base for your business, without taking on board the added burdens that a traditional leasehold office carries.

In this article, we will review both serviced office space and coworking space. Looking at the benefits as well as the potential disadvantages of each option. We’ll also evaluate how to pick the right workspace for your business needs.

What are Serviced Offices?

A serviced office is office space that’s leased out by a facilities management company (e.g. like Brightfield Business Hub. Serviced office space is sometimes referred to as “Managed Offices”, “Executive Offices”, or “Business Centres”.

Serviced offices are typically home to corporates, as well as well established small businesses. A business may rent an individual private office, a larger more plush executive office suite, a single floor, or several floors in a building depending on their size.

In contrast to traditional office leases, a serviced office is usually a fully-furnished office suite that is set up and ready for immediate use. One of the main advantages being that with a serviced office you can be in place and working within days (unlike a traditional office lease which can take months)

Typical Serviced Office Facilities:

• Phone, internet, utilities
• Managed reception services and administrative support
• Conference rooms, larger meeting rooms or communal spaces
• Maintenance and cleaning of the office and communal kitchen / lounge areas
• Security services (monitored CCTV, electronic door entry)
• Mail services
• Shared office equipment (e.g. copiers, AV equipment, binders, etc.)

The exact range of services offered will depend on the specific business space. When you’re looking at business spaces that provide serviced offices, be sure to compare what services are included with each lease you consider.

What is Coworking?

Coworking is the “most recent approach” when it comes to office workspaces. For freelancers, entrepreneurs, startups, micro businesses and small businesses coworking offers flexible workspaces . In a coworking space there are numerous options for the type of workspace you can rent, these include:

• Often on a open desk basis, a single desk in a shared open-plan environment,
• Dedicated desks for you and your team side by side open plan
• Private offices – individual or group ( sometimes these are referred to as Serviced offices)

Coworking Services:

• Open desks (sometimes called hot desking)
• Dedicated desks
• Dedicated offices
• Bookable meeting rooms, board rooms, conference facilities (often access to these available at a discounted rate)
• Access and usage of communal facilities (e.g. kitchens, lounges, recreational spaces – at BBH they have a table football and pool table)
• Centre manager and support staff to assist with any troubleshooting issues

You can also expect essentials such as printing, internet access, documentation and binding to be included, and many coworking spaces do offer reception services. Note some facilities may even have fax machines

The better coworking spaces offer programmes of events based around tenant needs designed to build community, including networking events and socials.

The Pros and Cons Serviced Office vs Coworking Space

Advantages of Serviced Office Space

There are many benefits associated with serviced offices. These include:

• Desirable locations, often in the primary business area of your city Peterborough Brightfield Business Hub is a great example
• Lower costs than traditional office rentals and leases
• Convenience and ease of set-up
• Shorter lease terms than traditional office leases
• Building maintenance is taken care of
• Administrative support is provided
• Access to private spaces to meet clients and conduct meetings

Disadvantages of Serviced Office Space

There are some disadvantages to serviced office space:

• They can have a “generic” appearance that may be off-putting as you are not able to apply your own branding to the office space
• As one of many tenants you lack control over shared spaces which may include meeting rooms or other communal areas. Therefore you need to be on your ball if you want to regularly use these facilities
• Monthly costs are higher than with a traditional lease (although generally still lower over the long-term)

Advantages of Coworking

Startups and entrepreneurs love coworking spaces for the following reasons:

• Low cost, low commitment options
• Ultimate flexibility, allowing you to come and go as you please
• By there very nature coworking spaces are highly social and collaborative which can be incredibly powerful

Disadvantages of Coworking

The following potential drawbacks of a coworking space:

• A lack of privacy can prove difficult—especially if your business relies on client confidentiality
• Competition for resources such as meeting rooms or breakout spaces can be fierce
• You have no control over meeting room layouts, decoration, etc.
• If you aren’t looking to collaborate and engage with others then coworking might not be for you

The Costs

Cost is an important factor in any business decision. The cost of any office space will vary widely depending on your location and your needs.

Cost of Serviced Office Space

A serviced office is the more expensive of the two options. You’re paying for full-time access for an office space, and for the “all inclusive” experience of a serviced office. Generally you will have a fixed-term contract, which means you are locked into these costs for a minimum of 12 or so months. Some facilities are available on a rolling monthly basis

Cost of Coworking Space

Coworking spaces also vary in price. Some spaces focus on offering economy options, while others offer a more “elite” feel. What you pay for coworking will also depend on your needs. Coworking is without a doubt the more financially flexible option. Options such as by-the-hour and day-rates are common. Even for longer term rentals, it is usually easy to change your plan or leave completely if your financial circumstances change.

Which Office Space is Right For You?

By now, you have a clear idea of the differences between serviced offices and coworking. If you’re still not sure which is the right choice for you and your business, consider the following questions:

• How much space do you need?
• How often do you need office space?
• How long do you need the space for?
• What kind of amenities do you need?
• What’s in your budget right now?

Making the move into a new office space is a big deal. Spend the time considering what you and your team need and researching the options available to you. In today’s world, there’s a space for every type of business — and it’s worth spending the time to find it.

Looking for Office Space in Peterborough?

Brightfield Business Hub offers the most prestigious and affordable office space all throughout Peterborough. Learn more about our office plans and find the ideal workspace for you and your business to thrive in.

Serviced Office vs Coworking Space Questions – Summary

Serviced offices and coworking spaces have emerged as popular alternatives to traditional office leasing, catering to the evolving needs of businesses and professionals in the modern era. Serviced offices offer fully furnished, private office suites that are ready for immediate use, often with flexible lease terms. They are an excellent choice for established businesses seeking a professional environment without the hassles of long-term commitments and office management.

On the other hand, coworking spaces provide a shared workspace where individuals from various backgrounds and companies can work alongside each other. These spaces promote collaboration, networking, and a vibrant community atmosphere. They are particularly attractive to freelancers, startups, and remote workers seeking an affordable and flexible workspace solution.

One key distinction between the two lies in privacy and customisation. Serviced offices offer greater privacy and customisation options, allowing businesses to brand and personalise their space. Coworking spaces, by contrast, emphasize communal areas and shared resources, sacrificing some privacy in favour of a dynamic, interactive environment.

Flexibility is another differentiator. Serviced offices are typically more accommodating to larger teams and established companies with stable space requirements, while coworking spaces are adaptable for businesses with fluctuating headcounts or those looking to test new markets without the commitment of a long-term lease.

Cost considerations also play a significant role. Coworking spaces tend to be more cost-effective for smaller teams or individuals, as they provide access to premium office amenities at a fraction of the price of traditional leasing. Serviced offices can be pricier but offer a more exclusive and self-contained environment with fewer shared resources.

Ultimately, the choice between serviced offices and coworking spaces depends on the specific needs and preferences of the individuals or businesses involved. Some may prioritise privacy, customisation, and a stable environment, making a serviced office the preferred choice. Others may value collaboration, flexibility, and cost-effectiveness, making a coworking space a more attractive option. It’s essential to carefully evaluate these factors and assess how they align with your business goals when deciding which workspace solution is the best fit.

Contact Michelle Craig at Brightfield Business Hub on 01733 595885 or email Michelle Craig at arrange an appointment to see the wide range of conference and meeting rooms at BBH. Click here to have all your conference questions answered.

For information on short term self storage facilities that are ideal for businesses click here