Serviced office vs conventional office: Which is better?

20th November 2020 | 3 min read

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 offices, serviced offices or 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. Costs are also likely to be higher due to the extra square foot included for common areas such as corridors and bathrooms. Conventional offices are more suitable for long-term leasing, and make a good option for larger, more 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.

Other benefits of conventional offices include the freedom to plan and design your office space, as well as instilling it with your identity, branding and company culture. Further, if your company has a lot of detailed or unusual requirements, a conventional office may work better for you.

What is a serviced office?

Serviced offices provide office solutions to businesses looking for smaller 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. However, cost per station is often higher than a conventional office – after all, you’re paying for flexibility, convenience, and services as well. You may also find that costs for additional services or facilities add up quickly, so find out what’s included and what isn’t before you buy.

These sorts of office-as-a-service solutions suit smaller companies, 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.

Coworking spaces

Coworking spaces are similar to serviced offices, in that they offer a more flexible approach to working life. Workers can start and finish work at a time that suits them, and choose between a private or shared workspace, depending on how they want to work. With serviced offices and coworking spaces, you do not need to organise cleaning, recycling, or other facilities, as this is typically included as part of the service. There are growing numbers of coworking spaces around London, many offering additional attractive perks such as tea and coffee, fitness facilities, cycle storage and modern meeting rooms with hi-tech equipment.

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, ultimately your choice will depend on the size of your workforce, how long you require the office space for, and the exact facilities you require to run a successful business.