Serviced Office vs Traditional Office

Serviced Office vs Traditional Office: 3 major differences you should know about

Every business has its own set of needs, and unfortunately, there isn’t one formula that would aptly fit them all. The type of space that a company holds office in can greatly affect its well-being, so as a business owner, you should be able to gage which kind of office would benefit you most. Here are 3 things you need to know when choosing between a traditional or serviced office.

1. Lease terms

A traditional office normally requires businesses to have strict commitments in terms of lease. The usual commercial space will require about 3 to 10 year lease terms, regardless of how big your company is.
Long lease terms may cause problems down the road, as you’ll be required to shell out a huge sum of money without knowing how your business will perform in the near future.
Serviced offices, on the other hand, allow you to have more flexibility in lease terms. A good serviced space will allow you to choose from daily, monthly, or yearly lease terms - it all depends on what is most manageable for your business.

2. Utilities

Upon signing your lease, traditional offices will hand over the space to you in either warm or bare shell condition. This requires you to have many additional expenses prior to moving in, such as air conditioning units, basic office furniture, and maintenance needs.
A serviced office space will have all the necessary needed in order for you to get back to business as soon as you move in.
In addition, you’ll have a lounge to renew focus and creativity, full furnished conference rooms for private meetings, and a prestigious business address for your clients and/or partners to visit.

3. Minimum area requirement

For traditional offices, the size of the space is heavily dependent on what’s available in the area. This may pose a roadblock in your office search, as most accessible business districts may have limited available spaces, and they might not always be suitable for your company’s size.
The traditional commercial space may require about 100 square meters of rental space, and if you’re a start-up business with less than 10 staff members, paying for such a large office will be a wasteful investment.
Most serviced offices will allow you to exactly choose how much you space you’d wish to occupy. In fact, some even offer just one seat. This allows you to allocate your budget wisely, since you only have to pay for the space that you need, not just the space that’s available at the moment.

Now that you’ve been briefed about the type of offices available, you can carefully consider which option best fits your business, and which space would be most willing to adjust to your needs.