What is a Serviced Office Space? Benefits, Locations & Cost

Say goodbye to empty desks, poorly designed workspaces, and conventional office leases!

Businesses worldwide are abandoning traditional office spaces and embracing more flexible working arrangements.

Serviced offices have emerged as one of the most popular flexible workspace solutions, with demand rising by 173% since 2020 just in the UK.

But what exactly are serviced offices?

Serviced offices are fully furnished and equipped workspaces managed by a third-party provider and are rented out on flexible leasing terms.  Their high-quality facilities and a wide variety of support services set them apart from other flexible office spaces, giving businesses a professional edge.

If you’re considering switching to a serviced office for your business or enterprise, our helpful guide will explain their benefits, costs, and what to look for before you start your search.

Benefits of Serviced Offices

Flexibility

Serviced and managed offices provide the ultimate workspace flexibility, allowing your business to ditch the commitment of lock-in contracts.

That’s because most serviced offices can be rented out on a monthly basis, perfect for startups or businesses testing the waters in a new location.

But it’s not just their leasing terms that are flexible.

Serviced offices allow you to easily scale your workspace up or down as your team requires, whether this is adding or removing extra desks to your membership plan.

In today’s dynamic work environment, a serviced office gives businesses the agility to adapt to changing business needs without hassle.

Cost-effectiveness

Flexible office space is inherently a more cost-effective solution for companies when compared to conventional offices.

But what makes serviced offices superior to other flexible packages is their all-inclusive pricing structure, making budgeting and managing operational costs a whole lot easier.

In one monthly payment, rent, utilities, office maintenance, facilities, and all amenities are covered, so you don’t have to worry about any other ongoing costs besides your membership.

Let’s compare this to a traditional office space.

In the UK, the total monthly rent for a private office space is equivalent to the price per square foot of the location multiplied by the overall square footage. And that’s not including service charges, business rates, VAT, and other fees on top of this base price!

Instead, with a serviced office lease you only pay for the membership fee for your team and the VAT, making serviced office costs better for your business.

Prime Locations

For most businesses, securing a luxurious office space in a world-class city or financial hub is a dream they aspire to.

Serviced offices are the easiest and most cost-efficient way of turning this dream into reality.

Many serviced office providers boast office spaces in highly sought-after business centres and cities, with London, Manchester, and Glasgow being the most popular locations in the UK.

The advantages of having your business situated in a well-regarded address include the following:

• An increased professional image
• Greater access to a diverse talent pool of highly skilled professionals
• Networking opportunities due to proximity to other businesses and organisations
• Access to a wider range of amenities and services such as upscale restaurants, cafes, shops, green spaces, cultural sites, and convenient transportation options.

Amenities & Services

Many companies and freelancers alike argue that the best part of serviced office spaces is what’s included.

Unlike other flexible office space options like coworking spaces and hot desk shared offices, serviced offices provide fully furnished workspaces with high-end offerings to support the daily functioning of your business.

Your service office provider will have the industry-standard inclusions in their packages:

• Access to meeting rooms and conference spaces
• A fully stocked kitchen with free tea, coffee and refreshments
• Essential office facilities such as printers, fax machines, stationery and
• Mail handling and redirection services
• Call answering and forwarding systems
• Onsite reception services
• High-speed internet connection and VPNs
• Recreational spaces, flexible working zones, and collaboration areas

An upscale serviced office provider may also include the following:

• Executive suites and private offices that can be booked out whenever you need
• Additional secretarial services such as personalised translation services, website management and
• 24/7 access to IT services and helpdesk support
• VLAN connections, ISP, your business's own Global IP address,
• Robust privacy and security infrastructure
• Access to your provider’s additional locations nationally and internationally
• Five-star facilities like gym and fitness centres, bike storage zones, rooftop terraces, and quiet focus areas.

Community & Networking

​​Serviced offices aren't just flexible office spaces, they're a breeding ground for connection and collaboration between businesses occupying the same premises as your business.

Serviced offices often foster a vibrant community atmosphere as shared communal spaces enable individuals to interact and connect with other workers and companies.

Shared lounges, kitchens, and even social events hosted by the office provider create opportunities for businesses to develop partnerships, promote their services, and even spark new business ventures.

Being surrounded by a network of like-minded professionals and enterprises is a powerful drawcard of serviced offices and is particularly advantageous for up-and-coming small businesses.

Choosing the Right Serviced Office

Finding the perfect serviced office involves balancing your company’s wants and needs, flexibility, functionality, and affordability.

Location

Selecting the right serviced office location is crucial for employee satisfaction, client convenience, and your overall business’s success.

From a business perspective, locating your new office in a prime financial hub in a building with a professional atmosphere and well-maintained facilities is a guaranteed way to increase your brand’s reputation.

However, striking a balance between a prestigious address and a reasonable commute for your team is important. It’s best to look for office space with great public transportation options, parking availability, and proximity to major roads.

Budget

Although serviced office space is a cost-friendly alternative for many businesses, setting a clear budget is essential before your next office move.

Before Googling ‘serviced offices near me’ and collecting quotes from every nearby provider, take the time to research average prices and what’s included in these price points.

Don’t be afraid to negotiate either! Many serviced office providers can assist your business in finding the right workspace solutions for your unique needs.

Size & Layout

Not all serviced office spaces are created equal. Some give their clients an entire floor to themselves, whilst others offer a more coworking space style.

Before moving offices, ask yourself the following questions:

• How many desks do I need now? Will this change in the next few months?
• What type of office areas does my business need? A private workspace, our own space, or more open zones for collaboration?
• Will we need more space over time?

Related: How Much Office Space Do I Need Per Employee?

Top tip: If you’ve found a serviced office space you like but aren’t sure if the work style suits your team, most providers will happily give a free trial. Trial the space for a week or two to get a better feel of the space and if it suits your team’s requirements.

Contract Terms

In preparation for signing any contracts, businesses must understand the terms of their serviced office agreements.

Whilst serviced and managed offices are flexible in leasing terms, some providers may have some strict non-negotiables hidden in the contracts.

Getting a clear breakdown of what services are included, pay-as-you-go extras, maintenance and repair responsibilities, and lease clauses will ensure you don’t get caught with any surprises.

If anything in the contract is unclear, seek clarification from the serviced office provider before signing.  It's always better to be upfront and avoid any potential misunderstandings later.

Amenities & Services

Sometimes it’s easy to overlook the quality and quantity of services and amenities in managed offices and opt for a location missing some of the core essentials you didn’t realise weren’t included. This is especially true if you’re only thinking with your wallet and not with your employee’s best interests at heart.

On the flip side, it’s just as easy to get caught up in all of the impressive amenities and pay extra for services you don’t need.

To avoid any extra costs of having too few crucial amenities or too many unnecessary services, businesses need to consult with their teams on what they require to get their jobs done.

Taking the time to compile a comprehensive list of needs, nice-to-haves, and don’t-wants will make the entire process of finding your new office more straightforward.

Company Culture

Ever walked into an office for the first time and immediately felt welcomed and at ease?

Your serviced office isn’t just where your offices are located, it’s where ideas flourish, teams work together, and where your business calls itself home.

To find the right home for your enterprise, Look for a location that aligns with your company culture and brand image. A bustling floor space might be ideal for a fast-paced startup but may not suit a freelance writer who works in a quieter, biophilic workspace.

An office space may have everything you need, but if the atmosphere doesn’t match your company’s vibe, then it’s not the right fit for you.

Serviced Offices vs Coworking Spaces: A Comprehensive Comparison

Top Serviced Office Locations in the UK

As previously touched on, the most popular and sought-after serviced office locations are in globally connected cities and financial centres.

In the UK, London, Birmingham, Manchester, and Glasgow are the cities where there’s the highest demand for serviced offices and other flexi workspaces like coworking spaces and virtual offices.

Within London, serviced offices in areas such as The City of London, Westminster, South Bank, and Canary Wharf are in such strong demand that occupancy rates have skyrocketed.

The Three Best-Serviced Offices in London

One Mayfair Place

Step into a legacy of excellence. One Mayfair Place, the reimagined Devonshire House, offers a work environment unlike any other. 

State-of-the-art facilities seamlessly blend with beautifully restored surroundings, creating an unforgettable first-class experience for workers, clients, and visitors alike.

The Leadenhall Building

As one of the most prestigious office buildings in Square Mile, a business address in the Leadenhall Building will give you a powerful reputation and take your company to the next level.

With five-star services and world-class amenities, every detail has been meticulously designed for your success and enjoyment.

Canary Wharf

Located in Canary Wharf’s most exclusive buildings, 40 Bank Street is the perfect place for up-and-coming businesses to set down their roots.

No expense has been spared in turning this former docking spot into one of the most impressive workspaces in the UK. 

With serviced offices and coworking spaces in strong demand, you’ll need to get in quick!

Read more: The 4 Best Serviced Offices in The City of London

Cost of Serviced Offices in the UK

Average Costs

The average costs of serviced offices across the UK typically range from £500-£1500 per employee/month, with £700 cited as the average cost per person.

When compared to the price per square foot of the location multiplied by the overall square footage base price discussed earlier, office spaces with flexible lease agreements are proven to be better value than traditional office space.

It’s important to note that while £700 per person sounds like a fantastic bargain, most managed office space at this price point may not include all the features synonymous with a serviced office.

Factors Affecting Cost

The price of a serviced office hinges on several factors including location, size, spacing, and inclusions providers are offering.

Prime locations with prestigious addresses, private offices, and complete control of the environment typically come at a premium.

The range of amenities and services included in the base price also significantly impacts the overall cost, with some providers charging extra for meeting and conference room hire.

Hidden Costs

While serviced offices offer a convenient and flexible workspace solution, there can be some hidden costs to consider.

This can include pay-as-you-go extras such as bookings for meeting rooms, rates, and service charges, and breaking lease clauses.

Being aware of these potential hidden costs upfront can help you determine whether they are the right office space solution for you.

Our Full Breakdown of Serviced Office Costs: How Much Should You Pay For a Serviced Office in London?

Find your new serviced office today

As a leading serviced office space provider across 150 locations, Servcorp provides luxurious office spaces, industry-leading technology solutions, and world-class amenities and services to support your business.

Chat with one of our experts via an online form or call for guidance on how to secure your serviced office in the UK today.

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