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Is it a case of 'time please' for Conventional Offices?

29/09/2010

Seven reasons why switched-on SMEs are switching to serviced office space in order to benefit from the recovery.

Julie Grieve, Abbey's Managing Director explains why she believes savvy businesses are increasingly choosing the serviced office option.

  • Flexibility – 2015 is a long way off...but 5 years is the average length of time businesses are required to commit to with conventional space.  Can anyone confidently predict what their business priorities will be in 2015? Businesses wishing to mitigate their risk are switching to serviced office accommodation.

    Julie Calder says: “A serviced office enables businesses to commit to shorter time scales, starting from just 3 months. However our average client actually stays for over 3 years. As the gap between average serviced office residencies and the duration of conventional leases narrows, businesses are becoming less willing to commit to the old restrictive conventional terms”.

  • Cash Flow – Serviced agreements allow for better budgeting. Unlike conventional space where tenants pay quarterly in advance, serviced office clients ‘Pay as they go ’on a monthly basis and only for services they use.

    Julie Calder comments: “Our latest survey of recent move-ins showed that 100% agreed that the actual cost of the office and services matched what was negotiated. We’ve banished the myth that serviced office providers hit businesses with hidden costs after they move-in’.

  • Space Efficiency –In the UK, office space typically accounts for 20% of a company’s overall costs. In a conventional lease, businesses which have downsized their head-count are often left paying for space they no longer use. Serviced office agreements provide greater flexibility for businesses to increase or decrease their space requirements to match their evolving business needs.

  • Speed – In theory you can sign a serviced office agreement and move-in on the very same day. Serviced office providers such as Abbey provide a ‘Ready to Go’ space; fully furnished with ‘Plug and Play’ broadband and telecoms access at each workstation. There are no lengthy lead times waiting for suppliers to install or switch on their services either.  Your workers can move-in and get straight down to business.

  • Reduced Staffing Costs – Support staff, including a team of receptionists, are incorporated in the cost of a serviced office. These highly valuable and expensive resources are shared equally amongst all clients leaving your staff to concentrate on your core profit making activities.

  • Test New Geo Markets – Since the early 1990s, serviced offices have become increasingly popular and now have a presence in all major cities across the globe.  Shrewd businesses are using serviced space to test untried geo-markets before going to the huge expense of setting up a permanent base. This ability, along with the speed to market, allows them to stay ahead of the competition.

  • Access to a network of businesses – Serviced offices give you the chance to network and cross sell with a variety of other businesses residing within the building.

Serviced offices provide a solid grounding on which businesses can consolidate or expand their operations at a price which is also affordable. With the world in recession now is perhaps the best time to close the door on conventional space.

If you would like to discuss your office space requirements please call Reena Potanah now on 0207 340 8503.