LABS Jamestown Road
10 Jamestown Road, NW1 7BY
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20th November 2020 | 3 min read
Serviced office vs conventional office: Which is better?
The way we work is ever-changing, and there are more options than ever when choosing an ideal workspace. Gone are the days of regimented office cubicles – many employers now offer employees more modern styles of working, including open plan office, serviced offices and coworking spaces. However, more traditional workspace designs still continue to be popular. So, when it comes to serviced office vs conventional office, how do the two measure up? Read on to find out more…
What is a conventional office?
A conventional office is rented directly from a landlord, usually on a price per square foot per year. Conventional offices are more suitable for long-term leasing, and make a good option for well-established businesses who are confident that they need a long-term space for employees – as well as the space and facilities to accommodate larger numbers of visitors in the building.
Although conventional spaces give you full control over how you design, occupy and manage your space, they come under CAPEX, or capital expenditure costs, which can be significant; depending on the size of the space and the level of work needed to make it an effective office.
What is a serviced office?
Often known as flexible workspaces, serviced offices or coworking spaces provide office solutions to businesses looking for spaces on long term contracts, with the price being calculated per number of work stations needed as opposed to square foot of office space. As you pay for the exact space you need, you won’t be paying for unused space, which could save you a lot of money in the long run.
These sorts of office-as-a-service solutions suit new businesses growing quickly, or start-ups looking for short to medium term contracts, who can move in and out of offices with flexibility. They also work well for companies who might wish to expand or decrease their workforce in the future and require the ability to upsize or downsize workspace accordingly. The office also becomes an OPEX (operating expense) cost, rather than a CAPEX cost, which relieves pressure for smaller businesses or start-ups. However, as you’re paying for flexibility, convenience, and services as well, just make sure you find out what’s included and what isn’t before you buy.
Further benefits to serviced offices
Companies like LABS also offer contracts that allow businesses to pick and choose what they want – resulting in a bespoke-style contract that isn’t fully conventional or serviced. These businesses can choose the level of fit out and servicing they want.
You’ll also find that smaller businesses tend to benefit from the communal space within shared office spaces, which make it easier to collaborate, network and share ideas. Through modern coworking providers, companies are therefore able to build a unique community or knowledge hub.
Finally, lots of modern serviced offices or coworking spaces offer attractive perks, such as on-site coffee shops or break out areas, hi-tech meeting rooms, on-site gyms and bike storage. Office admin, such as recycling and cleaning, is often offered as part of the service.
Serviced office vs conventional office: Terms and conditions
There are terms and conditions for both serviced and conventional offices. Looking at costs, an up front deposit is required for both, but the amount varies depending on the length of the lease. Further, if you decide you want to move, the notice period is much shorter for a serviced office – and notice can even be given just a month prior to leaving. Conventional office notice periods vary and there is less flexibility, due to the landlord’s need to find alternative tenants, as well as time for refurnishing or moving equipment in and out of the office.
So, when it comes down to choosing between a serviced and a conventional office, consider what you need to run a successful business. If you’re after a space for a workforce with a more flexible time frame and plenty of bonus facilities, a serviced office could well be the workspace for you!
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