Why a Serviced Office is Important
In the modern era, where the office has become as much a component of the work team as the individuals who fill its desks, creating and maintain a successful office environment has become imperative. From startups to multinationals, all companies strive to find the right place to house their employees in such a way that the workplace becomes conducive to the progress and smoother running of the business. Because of this, plenty of time and resources are shoveled into finding, creating and making this environment work, not always successfully. This is where served offices come in.
Serviced offices, also referred to as managed offices or business centers, are fully equipped, fully operational offices or office buildings managed by facility management companies, which are ready for immediate occupation and use. They are usually found in the central business districts of major cities around the world.
Of the many advantages of a serviced office, the main and central benefit is its very nature: serviced offices already provide many of the components that make up the office environment, including all essential facilities and services, and are usually already equipped with work stations, storage, decorations, telephones system and internet connection. The real benefit is that this is all available within hours of days. This means that gone are the days of renting traditional office space, which requires that the incoming business bring in their own equipment.
The fee and rent structure of the model of office is another important aspect in making it an attractive option for your business. Whereas you are faced with the huge expenses of renting and fitting out the traditional office space, and you will usually be bound to a fixed term of three to five years, a served office allows you much more flexibility in this regard, meaning you are faced with less pressure from the get go, and can focus all your energy on the work.
Although the monthly rental fees on serviced offices are generally higher, they are rented out for brief periods, from as little as one month to one year renewable, or on necessity. As opposed to traditional rent models, where an upfront quarterly fee is required, monthly rent allows businesses, especially startups, to breathe a little easier when entering their new premises, easing up cash flow and allowing resources to be put to better use immediately.
Considering the fact that most amenities and facilities are already installed in the serviced offices, the breaking in period is negligible, which affects expenses in a major way. Research performed by the UK Chartered Institute of Purchasing has shown considerable savings for serviced office users. One of the ways through which this is achieved is through pay-per-use facilities, which means that businesses will only pay for what they need and use. These include services and facilities such as copiers, meeting rooms and staff.
Though the advantages of serviced offices mentioned above point towards a winning formula, there are also several disadvantages to be considered for prospective renters. These include the fact that businesses may not be able to extend their personal brand and style to their own offices, generally less visibility as the name of the company is not likely to appear on the building’s main lobby directory, the fact that facilities are shared means that they may not always be available when required, and, for larger companies, rental costs may prove to be more expensive over a longer period of time for larger businesses.
These disadvantages must be balanced against several more benefits, including a customer service team made up of secretarial support, a reception team, a post room team, IT support, building maintenance and cleaning, better growth flexibility, the availability of top equipment, networking opportunities and the no-hassle administration required with serviced offices. As these offices are generally found in city centers, they provide prime business addresses for companies, allowing for the reputation and prestige of the company to profit.