Small Meeting Room Hire in Peterborough If you were looking to hire a small meeting…
Office Space For Rent
Brightfield Business Hub has compiled some of the most commonly asked office space for rent questions. There is such a mixture of terminology in can get confusing so hopefully this will provide some helpful answers.
What is a Serviced Office?
Serviced offices offer access to a fully functional office space in a matter of hours or days. They are run by dedicated office management companies, who liaise with service providers and ensure premises are configured to suit the tenant’s needs.
Typically, a serviced office will be fully equipped with everything that a business requires to get started. This may include office furniture, workstations, telecommunications equipment, equipped reception areas, common areas like kitchens or break rooms, meeting and conferencing facilities, and waiting reception areas for clients and visitors.
A few years ago the occupiers of serviced office space were companies in sectors like professional business services, multinationals, scientific and technical professions. More recently, especially with the pandemic, the occupier profile has become more diverse. Serviced offices have become an appealing choice for companies of all sizes and industries, including first-time business owners, entrepreneurs and Small Medium Enterprises (SME’s).
What is Managed Office Space?
With more support than conventional office space, managed office space is a bespoke office solution with greater tenant input than serviced offices.
Managed office spaces are operated by a third party who acts as an intermediary between the occupier, the owner of the premises, and service providers. Professional facilities management companies run these offices and ensure basic tenant requirements are met in advance of moving in.
The majority of managed offices feature workspace partitions, telecommunications cabling, and can then be fitted out by the management company to suit the tenant’s needs. Managed offices therefore provide a bespoke office solution with greater tenant input than serviced offices and with more support than conventional office space.
Typical managed office occupiers are companies that need medium-term office space that’s already equipped with basic amenities, but offers scope for personalisation. Although the initial expenses aren’t as high as those involved in traditional offices, managed office tenants must have the financial ability to invest in capital expenditure,.
What is a Coworking Space or Shared Office?
These offices typically feature a mix of private offices and open plan space. Every coworking space is different and space arrangements vary depending on the packages chosen or provided. Some tenants have allocated workspaces and others rely on desk sharing if there’s no dedicated workspace. This allows users to choose their workstation on a first-come-first-served basis. Some tenants will arrive early specifically to bag their favourite pitch.
As you might expect the term shared offices, refers to workspaces occupied by more than one tenant or business. This type of office space is managed by a third party that provides space and facilities to self-employed individuals, freelancers, entrepreneurs, businesses and their staff.
Shared workspaces are typically fitted out with good quality office furniture and equipped with all the telecommunications infrastructure needed, including telephones, printing / scanning facilities and of course the ubiquitous internet access,
Although initially preferred by entrepreneurs, freelancers and micro-enterprises, the occupier profile has become increasingly diverse. Nowadays, shared office space has cemented itself as an attractive option for large businesses and multinationals needing to quickly put people to work on short-term tasks or long term collaborative projects.
What is the Difference between Managed and Serviced Offices?
Managed and serviced offices are both a flexible space solution. They’re similar to each other in that they cater to businesses in search of short or medium-term office leases. However, there are differences.
One of the main differences is that managed offices usually operate on vacant commercial space that has been renovated or refurbished. In the majority of cases serviced offices are specifically built to meet the needs of office occupiers. Therefore in the majority of cases serviced offices are pre-designed, while managed offices do offer a greater degree of personalisation (within the guidelines of any contractual arrangements).
The levels of support and equipment they offer differ between these two flexible office solutions. For example, managed offices are set up at a more basic level and the occupier is responsible for arranging their own workstations and telecommunications service providers. On the other hand, serviced offices are ready to move in and fitted with all the furniture, meeting rooms, common areas, and telecommunications equipment needed.
Due to the above, businesses can move into serviced offices within hours and days as opposed to the weeks required for a managed office due to the signing the leases etc. Serviced office fees are usually inclusive of additional services, such as cleaning, a staffed reception, clerical support, and utilities, etc. With managed offices this is not the case.
When choosing between a serviced office and a managed office, remember that the cost of serviced offices is calculated based on occupancy numbers (per desk or person). The cost of managed office fees is not per desk, but is based on the square footage used.
What is a Conventional or Leasehold Office?
Typically the first choice of businesses that require long-term office space is conventional offices (also known as leasehold offices)
Leasehold offices are a popular option among companies willing to commit to a longer rental period. Where they want to personalise the layout of their working environment, without having to commit to buying a property.
A conventional office is any office space that is leased for a long period of time., the UK average lease length is approximately 6 years. Leasehold offices also known as conventional offices have typically been the first choice of businesses that require long-term office space. The challenges raised by Covid and the pandemic may see this situation change.
What Costs are Associated with a Conventional or Leasehold Office?
The actual rental rate is the main cost associated with a conventional office lease. To add confusion this is sometimes known as the lease premium. Rental rates are often payable on a monthly or quarterly basis.
Service charges are another cost to consider when leasing a conventional office. These are outlined in the lease contract and refer to the costs incurred by the landlord to ensure the supply of certain services or utilities.
Service charges often involve property or facilities management expenses, such as the maintenance and repairs of common areas and the building structure, taxes, and property insurance.
The following costs that may or may not be included in the lease premium:
- Operational costs: Expenses incurred in repairs, maintenance, cleanings, security, waste disposal, utility delivery and insurance.
- Business rates: These are determined by the relevant city council and are calculated taking into account the building’s location and rateable value.
- Building insurance. Contents and business interruption insurance.
What is a Virtual Office?
Virtual offices offer their clients a range of digital and physical services. These are available on a membership or package basis, so the inclusions and exclusions vary.
A virtual office is a service created to allow business owners to carry out their activities without needing to commit to leasing a physical office. Virtual office operators provide a range of convenient services and amenities that facilitate the day-to-day operations of a business.
A key service offered by virtual office providers is a physical address where businesses or individuals can receive correspondence. Virtual office clients can use this as their registered business address despite not being physically present in that location.
Virtual offices are suitable for the needs of owner-operators. location-independent entrepreneurs, startups, and freelancers. Companies with mobile employee bases and micro-enterprises and can also find virtual offices useful. In summary, virtual offices are the ideal solution for business owners who want to establish their presence in a location by having a registered business address but do not want or need to be physically present.
What Does a Virtual Office Typically Include?
These vary significantly across providers but typically include
- A physical address that business owners can use to receive correspondence or as a registered address (e.g. added to business stationery, business cards, etc.).
- Mail handling and forwarding services.
- Telephone call handling and forwarding services.
- Virtual office staff handle a switchboard and email telephone call messages to their clients as directed.
- Clerical office support, photocopying, scanning, document destruction, etc.
- Company registration services.
In addition to the above, virtual office operators may also offer the following services on a pay-per-use basis:
- Access to desks and office space, whether it’s private or shared. This is sometimes located in the coworking space
- The use of conferencing and meeting rooms – in fact BBH offer virtual tenants these at a discounted rate
- Business support services like events and guest speakers
Office Space For Rent – What’s the Difference Between Flexible Workspace (FlexiOffices) and Traditional Offices?
Generally speaking, flexible office space gives business owners access to fully equipped office premises without requiring a long-term commitment in terms of lease duration or contract terms. At Brightfield Business Hub a Flexi Office contract could be for as little as a day
Flexible office space is a flexible alternative to traditional office solutions, providing companies a short term versatile office space solution. Flexible workspace is also known as flexioffice or shared office space. This type of office space is fitted with basic equipment, like desks, and chairs, phone lines and Wi-Fi. This setup allows employees who normally work from home to have a physical office for a few hours every week or every month.
Space allocation in flexible workspaces is not fixed, unlike in traditional offices, so business can maximise the benefits of cost and time-efficient solutions, such as hot desking or mobile working. In a traditional office environment employees spend most of their working day at their fixed workstation. Flexioffices allow staff to work from alternate locations and to only work from the office when necessary. In some cases, employees from different companies may share a flexioffice.
The length of flexible workspace leases varies and can be extended to suit the needs and requirements of the occupier. One of the main advantages of this office space solution is that rolling month-to-month contracts are very common. Additionally, the vast majority of office space available under these terms is ready to move in immediately. That means tenants who opt for flexioffices enjoy a less disruptive transition when moving between different locations.
A problem with traditional leases is that they cannot always accommodate the needs of a business through every stage of their development.
- During a particularly busy period, some companies may need to take up additional office space , but cannot commit to a long-term lease.
- Before committing to a specific location start-ups may want to rent office space on a temporary basis .
- Some firms may need to vacate their current premises while they look for more suitable long-term space.
- In cases like above, flexible office space is an ideal solution, as it provides the kind of flexibility that traditional office space cannot offer.
Other reasons why flexible office space may appeal to some business owners.
- Reduced overheads are one of the most commonly cited advantages of flexible workspace.
- Generally speaking, flexible offices are cheaper than their traditional counterparts, since most providers include all expenses in one fixed monthly fee.
- Rental rates may include parking, water, electricity, heating, business rates, and other utilities
- Many flexioffice providers also offer the possibility of adding other extras such as business self storage, or visitor parking space or use of gym facilities.
- Fixed monthly costs make financial planning easier and allow companies to manage their budget more accurately, helping them reduce their overheads.
- Business owners have the option of renting serviced or managed flexible offices without having to worry about hiring a new staff member to man reception areas.
The Advantages of Serviced Offices?
- Serviced offices provide access to fully functional office space in a matter of hours or days thus eliminating the time-consuming process of searching for and equipping traditional offices.
- Serviced offices are run by dedicated office management companies, which liaise with service providers and ensure premises are configured to suit the tenant’s needs.
- These companies provide a single point of contact, which makes communication easy and saves time.
- The office providers themselves take on responsibilities often associated with maintaining the building, providing services and ensuring that facilities are all working correctly.
- Serviced offices are available on an all-inclusive model that makes it easier to budget and keep costs under control. In addition, because they’re managed by a third party, there are no reinstatement or fit-out costs.
- Leases that can be as short as 3 months from many serviced office operators, as opposed to the multi-year leases involved in renting a traditional office.
- An attractive benefit for start-ups or large businesses in need of additional office space on a short term or project basis is this operational flexibility.
The Advantages and Disadvantages of Shared and Coworking Office Space
- One of the main advantages of coworking space is the degree of flexibility provided
- These spaces typically offer a variety of contract terms to suit the needs of different occupiers.
- Ideal for freelancers who do not want to commit to a traditional lease or start-ups, companies that are in the process of relocating.
- Coworking spaces are usually ready-to-move-in workspaces which require no set up
- For early stage businesses looking to limit their overhead costs, they offer a financial advantage
- Most operators have several packages to choose from, making it easy to switch your package on short notice based on the needs and requirements of your company.
- Shared offices are usually found in prime business locations, so they can be cost-effective for anyone looking to establish their presence in competitive markets. BBH provides coworking in a prime Peterborough location
- For some people open office layouts don’t suit everyone’s work style, and can, in some cases, cause distraction.
The Advantages of Conventional Offices
Conventional offices have several advantages over premises rented under a license.
- A leasehold office gives the occupier exclusive right to the use of the space, whereas licensed office space provides the tenant with limited rights.
- Depending on the contract a leasehold tenant has the right to carry out alterations and modifications to the space, which is not the case with licensed office space.
- Tenants may have the option to transfer the lease to a third party by requesting an assignment of lease from the landlord.
- Leases offer additional peace of mind as there’s no risk of short notice termination, as a conventional lease cannot be revoked by the landlord before its expiry date.
- Longer length, lease contracts mean that tenants don’t need to spend time negotiating and looking for suitable office space every time the contract ends.
- From a fiscal point of view too expenses incurred in an office lease can be deducted from profits in the annual tax return.
Office Space For Rent – Summary
Contact Michelle Craig at Brightfield Business Hub on 01733 595885 or email Michelle Craig at arrange an appointment to see the wide range of office space to rent at BBH. Click here to have all your office space questions answered.
For information on short term self storage facilities that are ideal for businesses click here
Related Posts
