Shared Office Space & Its Benefits Explained

The dynamic changes in workspaces over the past years have drastically altered how people view office space. It’s no longer a stretch of cubicles across a room with traditional office structures throughout the rest of the floor – now it’s all about shared office space.

As of 2024, the shared office space market is valued at USD $41.39 billion, with the industry expected to grow to USD $62.75 billion by the end of the decade.

Shared office space has enabled businesses to significantly reduce costs while catering to diversifying employee needs. Its structure has proven to be ideal for startups, entrepreneurs, and even large companies that seek hybrid office space or flexibility.

What is a shared office space?

A shared office space is a form of workspace in which multiple individuals or businesses use a single office floor.  The workspaces usually have several facilities and services that vary depending on the shared office, but some essentials are always present.

In the last few years, demand for flexible office space has skyrocketed in response to societal shifts in working culture. Shared offices have emerged as one of the most viable hybrid work solutions as businesses seek out an alternative to traditional offices.

The average shared office space has office furniture, a reception desk, Wi-Fi, and a boardroom. However, businesses often prefer shared office space that provides more amenities to improve business operations.

Let’s have a look at some of the more desirable services that most businesses seek in their shared office space.

Best services included in a shared office space

Location, team support, technology and flexibility are the key focus areas in a shared office space.

Business Address: The location of your business speaks volumes about its success, reliability and perception. While acquiring office space in Market Street or Circular Quay is usually very expensive, the cost is reduced to a fraction when renting a shared office space.

Some shared office providers legally allow companies using their space to register their address as the office location. Make sure to select a location that delivers an amazing first impression!

Team support: High-quality shared offices provide their clients with a dedicated receptionist to answer their calls, secretarial support to tackle tasks and onsite I.T. support to ensure their operations remain smooth and safe.

Technology: Shared bandwidth is a cybersecurity threat and most shared offices use this kind of Wi-Fi. Check with the shared office team if they offer unique passwords and VLAN connections for extra safety.

What are the benefits of using shared office space?

There are many reasons why shared office use is on the rise, even amongst large companies.

Hybrid capabilities

Traditional office space vacancies have increased since people have begun favouring a balance between working from home and the office.

Enter shared office spaces.

The ability to maintain a work environment of concentration that is regularly cleaned by staff is all your team members need. Employees can work from home when they want, and have a professional office space when needed at a low cost for employers.

Reduced costs

Businesses that lease commercial office space in a credible location can expect to pay upwards of $100,000 in rent and outgoings. On the other hand, shared offices don’t require a deposit and are generally a fraction of the cost of traditional office space.

A commercial office doesn’t come with furniture, a kitchen, IT infrastructure and a support team. It’s expected for your business to make the necessary investments toward those facilities, whereas a shared office cuts large costs by including these amenities in the cost.

Can be registered as your business address

Depending on the shared office, some services allow you to register the address of the shared office as your business location. By registering a highly credible location as your business base, you can expect clients to have a great perception of your brand.

Convenient locations

Prestigious locations are great for many reasons.

Not only do they bring credibility to your business, but they are always conveniently located. These shared offices are in urban areas which have robust public transport infrastructure and travelling to them for meetings or general use is easy.

Ample public transport is essential, so ensure to select a location that is easily accessible for your team and clients.

Networking opportunities

A shared environment equates to many opportunities to gain connections on professional and personal levels. Shared office spaces commonly host networking events or workshops, and these are brilliant for acquainting yourself with neighbouring businesses.

It’s common to leave these events having made new friends, finding business growth avenues and adding to your knowledge pool.

Flexible leases

The average office lease can range anywhere from one year to five or more.

Not many businesses can commit to lengthy lock-in contracts, especially entrepreneurs and small businesses. Commercial offices have a higher risk factor associated with them, but shared offices are on the opposite end of the spectrum.

A shared office can be leased every month, and such flexibility is hard to come by. It gives security by reducing risk margins and giving enough weave to reassess your options if needed.

Scalability with growth

One of the main drawcards of shared office spaces is their scalability, as businesses no longer have to deal with the long-term commitment of a traditional office lease.

The pay-as-you-go and short-term leasing models of shared offices allow businesses to easily adjust their workspace size as their business grows or shrinks.

Ease of global expansion

Shared offices support established businesses looking to expand into multiple office locations without forking out thousands of pounds on rent and new office setups.

This enables businesses to quickly set up a presence in new markets without the complexities and with support services already in place to make the expansion run as smoothly as possible. 

Different types of shared office space and workspaces

Coworking spaces

Coworking spaces have become one of the most in-demand types of shared offices in the last couple of years. They are a flexible workspace where workers from all walks of life occupy shared space, fostering a community of like-minded individuals.

A coworking space is best suited to small businesses, freelancers, and sole contractors who thrive in a dynamic environment. However, now enterprises from multiple industries are using coworking spaces to increase their global footprint and reduce costs.

Access to coworking spaces may also be a part of a virtual office package, allowing remote workers to utilise office amenities when they need them.

Find out if a coworking space is worth it for your business.

Private offices and serviced offices

A serviced office is a fully furnished office space that offers access to support services, facilities, and amenities. Serviced offices come with everything a business needs to flourish in its day-to-day operations without paying high office costs.

They are becoming increasingly sought-after by established businesses due to their flexible terms, cost efficiency and business support, making them a viable alternative to traditional offices.

Fully serviced private offices are also on the rise as more professionals seek out office spaces with minimal distractions. Most serviced office providers include private office access as part of their membership.

Learn more about the difference between a coworking space and a serviced office.

Dedicated Desks

A dedicated desk is a worker’s own personal workspace in a shared office environment. Unlike hot desking where a desk space can be shared between multiple people, dedicated desks provide individuals with their own space they can lease out for as long as they wish.

Who uses shared office space

Freelancers and independent professionals

Freelancers, entrepreneurs, and sole contractors greatly benefit from using shared office spaces, giving them to access essential amenities and services needed to prosper.

Shared offices can be the perfect workspace for these professionals as it promotes greater work-life balance and helps increase productivity, leading to better business outcomes.

These spaces can help combat isolation and provide networking opportunities to connect with other professionals for potential collaboration or referrals.

Start ups and small businesses

Serviced offices and coworking spaces are particularly popular with small businesses and start ups.

The short-term leasing structures, scalability, and facilities make them an affordable and flexible solution ideal for these companies in all stages of their operation.

For example, a coworking membership for a company of seven employees means they can access top-of-the-range office facilities and equipment for a fraction of the price of traditional offices.   

Remote workers and digital nomads

Shared spaces offer a professional alternative to working from a coffee shop or home office for remote workers, which can be distracting or lack ergonomic support.

Enjoying similar benefits to freelancers, shared spaces can help alleviate feelings of isolation that can come with remote work and offer networking opportunities.

Large corporations

For larger corporations, shared office spaces are particularly useful for teams that don’t require full-time space. For example, they can provide meeting rooms and hot desks for teams that meet only once a week for a few hours and for other regular events. 

Shared office spaces are also ideal for geographically dispersed teams or businesses expanding into new countries or regional markets, functioning as a satellite workspace.

Secure your shared workspace

Shared office spaces offer a lively and cost-effective workplace model that caters to the evolving needs of many businesses today.

Although it may be tempting to type “cheap shared office space” in Google and choose the first provider that pops up, it can be difficult to compare all the flexible solutions available.

As the flexible workspace experts, Servcorp recommends exploring our suite of shared office spaces to get an idea of what type of workspace is right for you

Chat with one of our experts via an online form or call for guidance on how to secure the perfect office space in London.

 If you're having trouble selecting an office, follow our guide on how to choose an office space.