Serviced office space - a total solution?
June 3rd, 2008 | by Simon Rattray
Those inside the serviced office industry know just how dynamic the market is in terms of the products and services that are offered ,as well as the types of tenants that occupy the various locations. The services on offer range from fully staffed business centres with meeting rooms and telepresence suites for example, to a virtual office that is used for the prestigious business address.
How the serviced office market sits within the wider scope of overall workspace solutions is an interesting point. Some companies use serviced office place exclusively, largely because of the flexibility and lack of long term capital commitment it offers. Typically a start up business would look to use serviced office space. Some larger corporates such as Google, Glaxo, Accenture etc use serviced offices with a blend of other types of office space depending on their particular needs.
If one part of a business is susceptible or volatile to changing market conditions then it makes sense to place these operations in locations that do not involve long term commitments. For example, the banking and financial sectors are being hit hardest by the credit crunch, so it makes sense to place these kinds of industries in serviced office space where they can enjoy a flexible license agreement.
Whilst it makes sense to place the more insecure elements of your business in serviced office space, it really could make a great deal of sense to place all of your business in it. This won’t be suitable for all businesses though, especially those who have accrued value in existing owned properties, not to mention the prestige and recognition of certain locations. However given the uncertain economic climate, falling property values, and difficulty in arranging mortgages…it makes even more sense for companies to opt for serviced offices. Moreover once all the monthly bills are added up, utilities, heating, electricity, broadband, cleaning etc not to mention someone employed to administer all of these, it is clear that serviced offices may work out cheaper each month. Many businesses are attracted to the singular monthly outgoing (plus phone bills or any extras) each month. This really helps in planning company finances and there will not be any surprise bills for dilapidations for example.
Clearly there are some things that may displease some companies from using serviced offices; these could be not having your own reception staff, sharing amenities or restrictions over modifications etc. But these will seem small fry if there is are financial savings to be made in addition to an absence of a long term
commitment.
What do you think? Will serviced office space be seen as a first choice solution rather than a convenient alternative?
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