A Serviced Office can cost up to 60% less than the standard conventional office space lease. A Serviced Office provides a comprehensive infrastructure without the capital expenditure providing all of the facilities a company requires. If you look at what a typical conventional lease entails:

Capital Expenditure:

  • A conventional lease usually requires a significant deposit which can tie up capital
  • Dilapidation Costs: A leased office space usually has a requirement to return the office as it was delivered i.e. with all infrastructure / fit outs removed. This can add significantly to costs when vacating a premise
  • IT Infrastructure: Network infrastructure, internet connectivity
  • Meeting Rooms: Video/ Audio conference equipment, multimedia capability for presentations, furniture
  • Office fit out: The Office needs to have carpets fitted, walls decorated, kitchen etc.
  • Office furniture: Desk, chairs, cupboards
  • Professional fees: Professionals to install/configure the items listed above
  • Telecommunications infrastructure: PABX, telephones, phone line

A serviced office typically provides all of the above at no additional cost.

Monthly Overheads:

  • Administrative staff
  • Building insurance
  • Catering facilities
  • Conference / meeting coordinator
  • IT support
  • Kitchen facilities
  • Maintenance
  • Office Cleaning
  • Office Rent
  • Postal/Parcel Services
  • Rates
  • Reception staff
  • Repairs
  • Rest areas
  • Telephone answering
  • Utilities

These items would be administrative functions that would require resources to deal with. A typical serviced office would provide all of the above for a simple single monthly payment which can reduce administrative staff overheads. There is also no need to spend money on receptionists or meeting coordinators as these services are typically included.

Scalability/flexibility:

  • A serviced office is easily upsized to a larger office with the minimum of expenditure
  • A serviced office is easily downsized to smaller office with the minimum of expenditure
  • A serviced office does not typically involve solicitors expenses that are usually associated with a conventional lease
  • No long term rental commitments are typically associated with a conventional lease
  • A conventional lease can have a long lead / setup time before being able to utilize the premises

In these uncertain financial times, flexibility is the key to economic prosperity. A serviced office can allow organizations to expand and contract as circumstance require with the minimum additional expenditure.

This is why a serviced office can be the right choice for many companies. It frees up precious time and resources to be utilized on growing the business rather than covering overheads while ensuring the business retains flexibility to grow or contract with minimal overheads as economic conditions require.