Coworking Space or Private Office: The Pros & Cons

There are many factors to consider when deciding to rent a coworking space or private office space in London. Factors such as cost, location, amenities and lease contracts are all important considerations, but perhaps the most important one is establishing the type of environment you want to work in.

Preferences such a collaborative and social atmospheres, or a more private and individualised space are the biggest differences when comparing a coworking space vs a private office to rent in London. Coworking spaces are the trending flexible workspace alternative to private offices but understanding the pros and cons of each workspace is important for businesses.

Space design - Coworking vs Private Office

One of the most notable differences between coworking spaces and private offices is the design and layout of the space. Coworking spaces are designed with the intention to encourage collaboration and socialisation, with large open plan areas and a variety of breakout areas , along with communal facilities such as kitchens and cafés.

On the other hand, private offices are generally more closed off with cubicle style layouts and very little in the way of communal facilities - however this does come with a benefit.

Private offices enable businesses to completely personalise their space. Whether it's having your branding within the office, choosing your chairs, sofas, desks, artwork, music and more, a private office allows a completely controlled environment.

Although as of late even large enterprises utilise coworking spaces, they typically attract smaller businesses which are looking to acquire space at a lower cost. For this reason, coworking spaces come furnished with their own design and furniture, which saves money but leaves businesses with no room to customise their space and promote their branding.

Alternatively, businesses seeking customisation can opt for a dedicated desk. Unlike hot desks, these allow you to have a permanent desk within the shared workspace, but there will still be limitations on how much you can change - make sure to compare packages.

Having the freedom to control your working environment is often one of the primary attractions of a private office, but finding a coworking space which suits your style can be a worthy compromise. If you're unsure about aesthetics, read our guide to learn more about office design.

• Coworking space design = con
• Private office space design = pro

Networking - Coworking or Private Office

Coworking spaces are often filled with like-minded professionals from a range of different businesses and industries, which creates an ideal environment for networking. This creates the perfect opportunity to find new business contacts, potential clients, along with a community to help you.

The relaxed atmosphere of coworking spaces also lends itself well to impromptu networking. With this in mind, businesses which value networking opportunities are better suited to coworking spaces.

This is in contrast to an office space in London, which can sometimes create a more insular environment. When renting a private office it's important to consider the location - being around other businesses in your industry can be beneficial for networking opportunities, but you may prefer a more central location which gives you access to a wider range of businesses.

Overall, if networking is a priority to your business then opting for a coworking space will be better than renting office space in London.

• Coworking networking = pro
• Private office networking = not a pro or con

Expanding or Downsizing : Which Workspace is Better Suited?

The scalability of coworking spaces is one of their biggest advantages. When you lease an office, it's a space which can only accommodate a set number of employees. If at anytime your team grows or someone quits their job, you are now dealing with the need for more space or paying for an empty desk.

A private office lease can range anywhere from five to 30 years, making it difficult to downsize since you are locked in. Coworking spaces allow for seamless expansion or downsizing because you simply pay per desk and maintain employee flexibility by letting them work from their closest coworking location.

For example, Servcorp's coworking spaces in London include the Dashwood House, Devonshire House, The Leadenhall Building and Canary Wharf, allowing businesses to broaden their talent pool by expanding their operational area.

When your business reaches more than ten employees, then it may be an appropriate time to evaluate if a private office is the better option.

• Coworking expanding/downsizing = pro
• Private office expanding/downsizing = con

Coworking vs Private Office - Costs

Coworking spaces are always going to be cheaper than renting a private office in London. This is because you're sharing the cost of rent, internet, furniture and utilities with other businesses. The price will depend on the location and quality of the coworking space, but regardless you will pay less than renting a private office in London.

The main exception to this is if you need a lot of space for your team. In this case, a private office may work out to be cheaper since you're only paying for the space you're using, however this is still rare. However, it's important recognise that coworking prices and locations go hand-in-hand and the address is a large factor in determining the cost.

• Coworking cost = pro
• Private office cost = con

Amenities

The quality of amenities and services offered by coworking spaces has improved dramatically in recent years. When renting office space in London, businesses need to realise that everything is essentially DIY.

No special amenities are provided and everything must be sourced in-house which is undoubtedly an additional cost. A coworking provider in London such as Servcorp provide several amenities such as a receptionist, secretarial assistance, mail forwarding, I.T. support and secure Wi-Fi.

Overall, an office space in London will provide fewer amenities than a coworking space, however this is completely dependent on the provider. Many coworking spaces only provide a space to work from and have minimal amenities to assist a business.

Coworking amenities = pro/con (depending on provider)

Private office amenities = con

Productivity

Since coworkng spaces are shared, the noise levels and distractions are determined by the people surrounding you, along with the environment that the provider has made.

For example, some coworking spaces have music playing in the background and encourage chatting amongst each other. Depending on your preferences, this may either promote productivity or be too distracting and hinder work progress.

A private office is a more controlled environment and all the elements are up to the business owner. Having choice over music, artwork, the size of your workspace, standard or standing desk, and other factors, all play into employee productivity levels.

Productivity in coworking spaces = not a pro or con

Productivity in private offices = pro

Office Space Lease Contracts in London

When it comes to renting office space in London, there are a few key factors that businesses need to consider. The most important being the length of the lease, which can range anywhere from five to 30 years. This is a big commitment and if your business needs change during this time, you may be stuck paying for an empty desk or have to sublet the space.

Coworking spaces offer a more flexible solution as you simply pay per desk and can maintain employee flexibility by letting them work from their closest coworking location.

However, renting a private office in London isn't all negative. While the lease contract for an office in London is certainly lengthier and more costly than a coworking space, the distinguishing factor is the stability.

In a rapidly changing market, some businesses prefer the stability that comes with a longer lease. This is particularly true for businesses that are still in their growth phase and need to maintain control over their environment as they expand their team.

Coworking lease contracts = pro

Private office lease contracts = pro/con

Coworking vs Private office - Which One is Better For my Business

The decision of getting a coworking space or private office in London isn't as simple as which option is better. Both have a unique set of offerings which may appeal to different businesses based on their current situation, with the final deciding factor being based on preference.

A private office in London gives your business complete control over space design and the environment which is great for productivity, however they are significantly more expensive than a coworking space. Coworking spaces come with many amenities and are ideal for business networking, yet lack the opportunity to promote your own branding.

Both have their pros and cons, so make sure you comprehensively understand what coworking is, and if your business is ready for its own private office space.

You can also learn more about shared office space and its benefits.