Serviced Office tenants protected from the crunch?
August 11th, 2008 | by Simon Rattray
There are many benefits from using a serviced office that have been written about extensively on this news site.
However, it is also important to recognise that aside from the convenience of having someone else administer all of your monthly bills, you could also be saving a great deal of money.
This is demonstrably more evident during times when costs are rising and when there are inflationary pressures in the economy. It seems pretty much everything is going up in price at the moment, except it might be said, serviced offices. These costs have to be absorbed by every business which consumes them, including serviced office providers.
Utility companies have recently increased their prices by up to 35%, meaning that office providers are going to see an immediate increase in their operating costs. Fuel is also going up in price rapidly, meaning that anything that has to be delivered to a business centre or any maintenance work that has to be done may also increase in cost. The main premise here is that while the providers costs may increase, if you are tied into a 12 or even 24 month contract at a serviced office you will be shielded from these increases.
No doubt when you come to renew the license, the provider will have to factor in the increased costs, but you will have had a period of time where you have not, as a business, had to absorb these costs.
How many businesses are now re-thinking their expenditure plans for the year in the light of the increase in gas and electricity bills? Serviced office customers are the lucky ones.
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