Commercial real estate is a rocky terrain. After all, some startups struggle to find their own space at all. There’s a lot to get through and consider when finding that perfect workplace. Still, despite all the swirling and ever-changing criteria, the same choice must always be made eventually; a leased office space, or a serviced office space?
The choice is difficult, but by breaking down both options, you should be able to decide which route is best for your business. Depending on your needs and circumstances, you’ll soon be able to work out what kind of commercial property you need.
Serviced Office Space
A serviced office space comes fully equipped, kitted out and are often situated in dense urban areas. This means that anything from sofas to internet connections are all readily available, installed and fit for use – and that everyone can see your success! Additionally, the management of the building is usually overseen by a separate company, meaning you don’t have to worry about the ins and outs of the utility logistics just yet.
The serviced office space is a good choice for the younger, less profitable businesses. The contracts tend to be shorter than the lease counterparts, allowing more flexibility for more affordable pricing. For example, companies such as Be Offices offer a great range of serviced offices in Birmingham, meaning you can find a fully equipped workspace in a well populated area. This is especially crucial, as you’d be getting cheaper, readily equipped accommodation in an area where you can flaunt your companies image and capability. What’s more, if you’re not happy, you can pack up and leave sooner rather than later!
Leased Office Space
A leased office space involves dealing directly with the landlord of the property and renting. The leases here typically last at a minimum of five years, meaning older companies with a sense of direction are better suited to this kind of commercial property. You need commitment if you’re looking to make the lease work well. Put simply, when it’s time to put aside the growing pains of the early years, its time to lease!
That’s not to say you shouldn’t lease if you’re still growing as a business. After all, companies never really stop! However, it’s best to lease out only the room you need to begin with. For example, rent out a single floor at the start if that’s the only space you require, then eventually expand to other floors if they’re available as you go. This will take some negotiation with the landlord, but any reasonable one would make it work if the space is available!