What is a Serviced Office

A question that we are regularly asked is “What is a Serviced Office” and how do they differ from other office arrangements. The frequency of this questions has increased significantly since the Covid pandemic and serviced offices are increasingly popular post pandemic for both small and established businesses.

Serviced Offices are sometimes known as managed offices or business centres. In its simplest format a serviced office is a ready made office which comes ready-furnished, with internet and phone lines pre-connected and devices already equipped.

The serviced office has become an increasingly popular choice amongst small business owners, larger corporates needing flexible working offices and sole traders post-pandemic. Following the turmoil created by Covid, more SMEs are prioritising flexible, move-in ready, fully featured office space.

The benefits of a serviced office are clear to see. Business owners want shorter-term rental contracts which they can easily swap /pause, and know their exact monthly office costs.

According to a recent survey by Employee Benefit, 85% of remote workers want their employers to introduce hybrid office working post-pandemic.

Lets explore the typical features you can expect from a serviced office, and why for many businesses they make perfect sense as their future workspace? This comprehensive article will explain the advantages and disadvantages of what is a serviced office. Allowing you to make an informed and confident decision about whether they’re right for your business.

Serviced offices tend to include in-house facilities and services including:

• Meeting rooms – ranging from smaller rooms for a few people through to larger areas for 200 people
• A reception team who’ll take inbound calls if required, sign in your visitors and direct visiting clients on your business’ behalf
• Shared kitchen facilities with fridges, microwaves etc where staff can prepare meals
• In-office facilities staff such as cleaners and maintenance

Possibly the major advantage of the serviced office is that they offer significantly more flexible lease arrangements than conventional offices.

While conventional offices might try to lock your business in for a number of years,  the majority of serviced offices rent you office space for as short a time as a month, a week or even just one day ( see the information Flexible Offices )

Serviced offices for start-ups and small businesses:

Sole-traders, start-ups, entrepreneurs and small businesses are increasingly choosing serviced offices when moving from a home working location to a new workspace. So what makes the serviced office a good fit for growing and new enterprises?

Serviced offices are able to cope with haphazard business  growth

Most serviced office providers will happily facilitate the (sometimes turbulent) growth patterns of a smaller business

When you suddenly get a new bigger contract and need to take on a few new staff members and realise that you need more space to operate. Serviced office providers aim to make it simple to upgrade your agreement and move to a larger area within their building. A process that can sometimes be achieved in days.

Equally important if you suddenly face a downturn and need downsize on staff, if you don’t need the space, many will allow you to downsize as necessary to a smaller office area.

Serviced offices have no set up time

A key selling point is the fact that serviced offices come ready to occupy and start doing business immediately. With quality office furniture desks and chairs, phone lines already set up, Wi-Fi ready to access, companies can get straight to business with minimal downtime on the day they move in.

When you consider that most businesses can’t afford to miss a single phone call for fear of losing a potential sale, this immediacy of operation minimises one of the biggest stresses of an office move.

Serviced offices can offer flexible lease agreements

The unpredictability of running a freelance operation, growing business or new business means serviced offices’ flexible lease agreements are a welcome offering.

As an entrepreneur, micro business or start up business predicting the future is incredibly difficult, so it’s unlikely you’ll want to be tied into a year-long office agreement while you’re still working to establish the business.

Serviced office benefits

Alongside the core benefits, many serviced offices also offer a range of other perks to promote its members’ wellbeing.

Additional perks can include:

• Tea and coffee-making facilities within the shared kitchen facilities
• Relaxation areas comfortable chairs, pool tables and table football
• Breakout areas where employees can gather in a more casual setting than a meeting or conference room

Many serviced offices strive to provide stimulating office spaces with modern layouts, unique design features and plush furniture to overcome the shortcomings of the more traditional bland office environment.

Serviced offices can be slightly more expensive when compared to other types of workspace. This needs to be factored alongside

• The flexibility and monthly (short term ) rental period – your not tied into a long term lease
• The fixed monthly price – you can budget because your serviced office cost is known
• The additional benefits – discounts off meeting rooms, on site gyms etc

Covid-19 and its impact on offices ?

Post Covid – The emergence of home working has meant work-life balance has changed significantly. New technologies such as Zoom and Teams have enabled businesses to continue working closely together using digital channels.

Pre-Covid, offices were used by businesses to facilitate in-person working. Collaborative activities required employees to be near each other either in the board room or meeting room with a whiteboard.

Additionally, the traditional and functional breezeblock finish of older office spaces are being replaced with more modern looking, glass-walled buildings, offering breakout spaces, communal areas and wellbeing-focused design choices.

Serviced office costs

A serviced office provider will typically charge a monthly fee per desk on a pay-as-you-go basis, and the amount will usually depend on:

• The size and quality of the space – do you want two desks and then a meeting table for four people, or a single desk in its own office
• The services and facilities on offer to your business – is there an onsite restaurant, nursery or gym
• The city or town in which the building is located – you wont be surprised to find that a serviced office in Peterborough is lower cost than London
• Whether or not the space is in a desirable part of town (for example near transport centres or cultural hubs) or whether its in a location with ample free car parking

It’s worth taking into account that you might find a serviced office in Peterborough whose price goes above and beyond the city’s average, simply because of the additional benefits provided.

Additional serviced office fees

When it comes to the cost of your serviced office, what’s key is understanding which services are included in the agreed monthly fee and which are not.

Some serviced office providers will charge an additional monthly cost for internet access and telephone use, which may cost as much as £35 per desk. They may also charge extra for you to use meeting rooms and printers. At Brightfield Business Hub – serviced offices include High Speed Internet as standard

Be aware some service office providers might charge you to have your business’ name listed at the building’s reception.

We would always recommend that you ask your serviced office provider for a thorough list of all the charges that’ll be coming your way – based on the services you’ll require – before signing an agreement. even if it is only for 1 month its best to know what you will actually be paying up front.

Serviced offices vs coworking spaces

There are plenty of alternatives to the serviced office options available to start-ups, with coworking spaces being a popular choice.

There are a number of key differences between serviced offices and coworking spaces:

• Coworking encourages a sense of community. Most coworking spaces actively encourage collaboration between its members, and will put on networking events to facilitate this. So if your a micro business, solo entrepreneur and  think you’d benefit from working with other entrepreneurs and learning from their ventures, a coworking space might be more suitable.
• Coworking spaces are typically cheaper than serviced offices. As you have your own desk, along with others in an open plan environment the cost is lower. You just need to establish if the potential lack of privacy will be a disadvantage to you
• Coworking spaces are often available for the day – allowing you to try at low risk / low cost before you make a monthly commitment

What is a Serviced Office – 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 serviced offices and areas at BBH. Click here to have all your serviced office questions answered.

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