Serviced Offices – the Smartest Choice for SMEs
You’ve probably heard about serviced offices.
Serviced offices and business centres have been around for over 30 years, and the market has grown phenomenally over the past decade. But who actually uses serviced office space?
Contrary to what you might think, it’s not all startups and micro businesses.
At officebroker, we find that most of the businesses who go on to secure serviced office space are already reasonably well established. They’ve usually researched the market, started out from home or even used a virtual office for a while – and by the time they reach us, they’re ready for the next step.
Let’s take a closer look at serviced offices in the City of London – it’s the UK’s most popular location for flexible office space, so it’s a good place to start.
This infographic from the City of London Corporation, released at the end of 2014, offers an interesting insight:
ΓÇó 70% of serviced offices in The City are occupied by SMEs
ΓÇó 18,000 people work in serviced office space in The City, employed by 2,250 businesses
ΓÇó Half of serviced office space in The City is occupied by “stable, steady-state SMEs that don’t expect to grow rapidly”
18,000 people across 2,250 businesses head to work in a serviced office in The City, every week. On average, that’s 8 employees per business. That’s a lot of activity to fit into London’s Square Mile.
What’s more, according to separate research from Deloitte Real Estate, The City holds London’s greatest share of London serviced offices with 1.7m sq ft – a whopping 34% of commercial property in The City.
Looking closer at findings from the City of London Corporation, the report goes on to identify that serviced office space in The City has quadrupled since 1995. It is expected to continue that trend by doubling in size by 2025.
The question is, why are serviced offices so popular?
Every business is uniquely different, yet broadly speaking, the top three reasons businesses give for choosing a serviced office look something like this:
1. Flexibility: Serviced offices are incredibly flexible. They can be short term, long term, mid term, and work on simple inclusive invoices. Agility is all-important, because business owners know the office can grow with their company (its easy to down or upscale within the same building) without the overbearing threat of long complicated lease terms.
2. Location: Earlier, we told you that the serviced office market is over 30 years old and multiplying fast. So guess what? There is now a vast range of choice, fuelled by increasing demand, which spans every major town and city in the UK – from London’s Tech City and Brighton’s buzzy backstreets to finance-focused Manchester and hip, historic Edinburgh.
3. Services: The clue is in the name: serviced offices. You get all sorts of inclusive services like full-time receptionist support, IT assistance, customised call answering, cleaning, general maintenance, a quiet place for a tea break, and more often than not, a bottomless supply of coffee.
Just like the businesses we work with, every office space is different. Some go to town on their inclusive services, with prestigious monthly packages in the UK’s most sought-after locations (swish serviced office in Mayfair, anyone?) while others are a little more basic, offering flexible fuss-free workspace in friendly business centres (with a budget-friendly price to match).
The upshot? Like for like, serviced offices are the most flexible and cost-efficient way to a fully functioning office, with prestigious perks and real supportive services to boot. my ip That’s why the market is set to double within the next 10 years, and that’s why serviced office space is simply the smartest choice for SMEs today.
officebroker has been on the front line of the serviced office business since 2001. It’s our job to help businesses of all shapes and sizes find flexible workspace, so speak to us today for help helping your perfect office anywhere in the UK.
– Image sourced from WikiMedia Commons ΓÇô by Jimmy Baikovicius