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Seven reasons why savvy businesses are switching from conventional to serviced office space in order to gain the competitive-edge

31/03/2010

With office space typically accounting for 20% of a company’s costs (second only to salaries), property decisions taken today will be pivotal to their success in the future. For far too long conventional landlords have sought to tie businesses to restrictive long-term leases; a lesson many businesses discovered to their cost during the recent recession.

But…the tide is changing and flexible agreement terms are becoming more and more prevalent.

Here are seven key reasons why businesses are increasingly choosing the serviced office option.

1) 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?
  • What will your head-count be? 
  • What new markets will have opened-up or closed-down? 
Businesses wishing to mitigate risk can switch to shorter office agreement terms by signing with a serviced office provider.

2) Cash Flow

Conventional tenants are required to pay rent quarterly in advance whereas their serviced counterparts ‘Pay as they go’ on a monthly basis. Serviced accommodation also comes fully furnished and equipped which means very little capital expenditure is required.

3) Space Efficiency

During the recent recession conventional tenants having downsized their head-count were left paying for space they no longer used. Serviced agreements provide greater flexibility for businesses to increase or decrease their space requirements to match their evolving business needs.

4) Speed to Market

In theory you can sign a serviced office agreement and move-in on the very same day. Offices are 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. 

5) Reduced Staffing Costs

Support staff, including a team of receptionists, are incorporated in the cost of a serviced office. These highly valuable but often expensive resources are shared equally amongst all clients in the building producing greater cost efficiencies.

6) Testing 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. There are over 1000 locations in the UK alone. 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.

7) 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 same building. Gone are the days when you would only find startup or small businesses residing in serviced space. Today you are just as likely to find divisions of national and global corporates in the office next door. 


Conclusion

The more agile the company, the more likely it will be able to withstand the stresses and strains of recession and be best placed to exploit the up-turn in the economy. 

Serviced offices provide a solid grounding on which businesses can consolidate or expand their operations at a price which is also affordable.

As the economy slowly pulls out of recession now is the time to close the door on restrictive conventional leases and make the switch to flexible office space agreements.

For further information about our 13 serviced office locations across the UK, call us today on 0800 634 6346 or email info@abbeyoffices.com.

Alternatively calculate how much UK serviced office space you may need online.