As the global business market adapts to various changing trends, there has been a notable surge in the popularity of serviced offices and all inclusive office space within a business centre. In fact, a report by Statista in 2021 showcased a 21% increase in the number of serviced office providers worldwide compared to the previous year, demonstrating the growing preference for this flexible workspace solution.
One key factor that has encouraged businesses to consider their working practices is the rise of and acceptance of remote and flexible workspace arrangements. Flexible working is now very much mainstream and this has encouraged businesses to reconsider their office space requirements and the use of a business centre. Serviced offices provide a flexible middle ground between traditional offices and remote work. What’s better? With an all inclusive office space, there is no commitment to a long-term lease which means that as and when a business’s requirements change, their office can flex with them.
Another factor driving the preference for all inclusive office space and serviced offices is the influence of startup culture, which has permeated the corporate world. Startups, known for their flexibility and cost-efficiency, have pioneered the shift towards serviced offices.
This movement has paved the way for established enterprises to follow, recognising the benefits of serviced offices within a business centre. In this blog, we explore why businesses across the globe are increasingly opting for the versatility and convenience of a serviced office in dynamic 2023.
Comparison: Serviced vs traditional leased offices
When it comes to choosing the ideal workspace, businesses today are faced with a key decision: should I opt for a traditional leased office with my own front door and the stability factor, or is the increasingly popular all inclusive office space a better bet for my business? We explore some of the key distinctions between these two options below:
Traditional Lease Office
Traditional leased offices typically involve long-term lease agreements spanning several years (often up to ten years), offering stability for your business but next to no flexibility.
Serviced offices offer complete flexibility for business owners. Serviced offices can be taken on a very short-term lease (sometimes for only a month!), allowing businesses to scale up or down as needed.
Initial setup costs
In order to adequately fit them out with furnishings, and technology traditional leased offices usually require substantial upfront costs
Whilst, serviced offices generally come fully furnished properly equipped, and ready for immediate use, significantly reducing the initial expense of setting them up.
Tenants are usually responsible for maintenance, repairs, and utilities in a traditional lease office which can be highly frustrating when the internet ‘goes down’ or a toilet gets blocked
Maintenance and utility costs are typically included in a serviced office package, relieving tenants of these time-wasting problems.
Amenities such as reception services and meeting rooms are sometimes found at traditional lease offices though such amenities usually add significant cost to the cost of the rent.
On the contrary, serviced offices generally offer a far more comprehensive package, including reception services, meeting rooms, high-speed internet, and often refreshments, creating a hassle-free work environment.
Traditional leased offices are usually extremely limited in terms of scalability within the same space, requiring a complex relocation process for expansion or downsizing. Tenants have to consider moving their staff, and equipment and arranging utilities at the new place.
Serviced offices allow seamless scalability within the same facility, providing adaptable solutions for evolving business needs.
Traditional leased offices tie you down to a single fixed location.
Serviced offices offer location flexibility in a way that traditional leased offices cannot due to their unique business model and infrastructure. Serviced office providers often operate a network of office spaces in various cities or regions. This means that your business can easily secure office space in different locations without the need for separate long-term leases in each area.
The choice between traditional leased offices and all inclusive office space ultimately depends on your company’s individual needs, balancing stability with flexibility.
The compelling benefits of serviced offices
Over the last few years, the business landscape has changed and serviced offices have emerged as an invaluable asset, offering a whole host of benefits. Firstly, for many business owners, flexibility is required and serviced offices adapt to a business’s ever-changing needs. With short-term leases and scalable space options, serviced offices allow businesses to remain responsive in an ever-evolving market.
Despite popular belief, all inclusive office space is extremely cost-effective and this is what is driving their surge in popularity. Gone are the days of substantial upfront expenses, these days serviced offices use a consolidated price model. They come fully furnished and equipped with high-speed broadband, and the inclusion of utilities. Maintenance and support services are part of the package, reducing both the initial setup and the ongoing costs significantly and eliminating the unpredictable overheads that traditional leases involve.
Lastly, serviced offices within a business centre foster a unique collaborative environment. All inclusive office space usually include a variety of communal spaces that encourage organic networking. In the world of modern business, serviced offices offer the most flexibility, cost efficiency, and opportunities to network with other businesses.
CASE STUDY: Jackson West Solicitors
Jackson West is a Midlands-based solicitor, that has historically opted for a traditional lease office space. In December 2022, Jackson West secured multiple serviced offices at Bloxham Mill. In the case study below, we explore some of the reasons for their decision to change and the benefits that they have discovered having moved to a serviced office.
Choosing change – Reasons for the transition:
Jackson West had been occupying a traditional office space in Banbury town centre for over a decade. However, the need for costly and time-consuming maintenance work prompted them to reconsider their workspace strategy. The company decided it was time to reassess its office space requirements and explore alternatives that could provide a more efficient and hassle-free solution
Traditional leasing – the challenges faced
The challenges associated with their traditional leased office space were evident. Expensive maintenance and upkeep were a constant drain on resources, diverting attention away from their core business activities. The fixed nature of the lease also limited their ability to adapt to changing needs and trends in terms of staff working from home etc. In addition, the necessity for a town centre presence, which was once critical, had shifted as their clients’ preferences and habits changed.
Reaping the rewards – The benefits of the serviced office shift
Jackson West were able to quickly move into fully furnished serviced offices, customised to suit their specific requirements. Bloxham Mill facilitated a seamless transition, even introducing the company to a trusted IT provider, further streamlining the process.
The benefits of the shift were tenfold. By choosing all inclusive office space, the company could focus exclusively on their core business, leaving facilities management, meeting organisation, and problem-solving in the capable hands of Bloxham Mill. The move also provided the company with the flexibility to adapt their workspace as needed. Bloxham Mill offers ample free parking, making it more accessible to clients and their workforce. The shared open spaces in the communal areas has not only fostered team bonding but also presented a professional and brand-reflective image to clients.
The move not only addressed existing challenges but also positioned the company to thrive in a more agile, cost-effective, and client-friendly workspace.
In today’s ever-evolving business world, all inclusive office space within a business centre is increasingly popular as a result of their adaptability and practicality. Businesses in 2023 have changing needs and it is evident that the traditional model of long-term leasing is being challenged by the benefits offered by serviced offices.
The relevance of serviced offices lies not only in their flexibility to accommodate shifting workforce requirements (i.e. a workforce who uses the office in a hybrid way) but also in their cost efficiency, which can significantly enhance a company’s bottom line. The days of large upfront investments and unpredictable overheads are being replaced by a consolidated pricing model that covers everything from office furnishings to utilities and maintenance. This financial clarity empowers businesses to allocate resources more strategically.
All inclusive office space offers a collaborative environment that provide plenty of opportunities for networking which encourages business innovation and growth. Spontaneous interactions that take place in communal areas, such as in the kitchen whilst making a cuppa’ increase the connections between businesses. In a world where partnerships often drive success, serviced offices have become the centre of organic networking.
Considering these compelling advantages, it’s a good time for businesses to re-evaluate their workspace strategies. The shift towards serviced offices is not just a trend; it’s a strategic move towards future-proofing your operations. The relevance of all inclusive office space within a business centre in today’s business world is a testament to their power to enhance productivity, foster innovation, and drive success in a rapidly changing environment.