The decision of which kind of office to rent is not always easy. Is it better to opt for a traditional or a serviced office? Here are the main differences between these two office solutions.
The choice of which office to rent depends on the specific needs of each business. Large companies already established on the market are more likely to opt for traditional office rental. Flexible office rental may be more suited for smaller companies, startups, or scale-up organizations.
What are the differences between these two types of office rentals? For whom is a traditional office rental a better choice, and who will benefit from a serviced office instead?
Traditional rental – what is it?
A traditional office to rent is a space that you rent solely for your own use. You can design it, arrange and furnish it as you wish. In a traditional office lease, you choose the providers of services such as internet, cleaning, or catering, and you are billed directly by them. Traditional rental also implies that your own staff manages the office – you are the one who hires the receptionist or office manager.
Office for rent in the traditional model – who is it for?
A traditional office for rent is a good option for you if:
- You want to sign a long-term lease – this usually involves a minimum 36-month lease. In some cases, the minimum lease term is 4 or 5 years.
- You care about the prestige and representativeness of your office and a unique design.
- You value your privacy and do not want to share common spaces, such as kitchens or conference rooms, with other companies.
- You need your own telecommunications infrastructure, or you need to comply with strict customer data protection rules due to the nature of your business.
- You foresee a stable situation for your company and treat costs such as furniture or IT equipment as a long-term investment.
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What is a serviced office?
A serviced office is an office for rent that is fully equipped and furnished, and available almost “on-demand.” It offers short-term rentals, and the fees for utilities and space management are regulated by the space operator – you receive a monthly cumulative rent invoice.
Read more about serviced offices
Serviced office for rent – who is it for?
A serviced office for rent in a flexible model is an option for you if:
- You are a small business or are just entering the market and are not yet able to determine your income or return on investment. You prefer to take out a shorter-term contract and extend it on a month-to-month basis as needed.
- You want the office to grow together with your business without having to pay for unused workstations. In a flexible lease, you can choose a “pay as you grow” model and expand the space as your workforce increases.
- You prefer to move into a furnished and equipped office, without needing your own furniture or kitchen equipment.
- You prefer to settle the rental costs and all additional fees – such as energy, internet, or cleaning – in one invoice. In a serviced office, all these elements are usually included in the rent.
- You want to have various services “in a bundle” e.g., reception desk, kitchen facilities, cleaning service, mail service, access to a printer, etc.
- You do project work with other companies and regularly need flexible space to work together and launch new projects.
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Office to rent London
Are you looking to rent an office in London? Use ShareSpace to compare flexible office solutions and find one that matches your business.
If you are not sure which office lease model is right for you, we will be happy to assist you in choosing the best option. Contact us, and we will be happy to prepare a free office comparison for you and help you assess which office for rent will meet all your needs.
