Benefits of Serviced Offices
Most tenants are able to agree to monthly, 3 month, 6 month or 12 month terms. As a comparison, most central London landlords of conventionally leased space will require tenants to commit to a term of at least 3 – 5 years.
For start-ups and smaller companies that are growing rapidly, serviced offices can readily cater for expansion, with providers moving tenants to larger offices whenever the space becomes available.
No professional fees
Serviced office brokers and agents are often used by serviced office providers, but fees are usually paid to the agents by the providers. Unless an occupier wishes to take the precaution of having an agent, surveyor or solicitor review their licence agreement there are likely to be no professional fees. The licence is usually a simple document that can be signed once the rent, term and possible rent free period has been agreed.
Great onsite amenities
The amenities on offer will vary from one serviced office provider to another, but it is not unusual to find buildings offering large break out areas, shared kitchen facilities, onsite cafes and bars plus a staffed reception. Larger providers will often put on events and seminars for their tenants, depending on the size of the building. Common meeting rooms can be booked as and when you need them, albeit usually for an additional cost.
No large up front capital expenditure
In most cases a serviced office tenant will take a furnished and decorated unit with installed telecoms and internet connections. It is unlikely the tenant will have any significant capital outlay at the start of the term, unlike conventional offices where most tenants will have to undertake some fit-out works.
No long-term liabilities
As serviced offices are generally taken on a 3 – 12-month term, tenants that find themselves wishing to grow or contract rapidly will not have to worry about disposing of a long-term lease, which might be difficult to do when the economy is performing poorly.
Collaborative and Co-working Environment
Serviced office buildings tend to house numerous small and start-up companies. Many will have large common areas and they can be a great environment to network and share ideas.