If you’re looking to change your home office for an office space, there are a few things to consider. For instance, what type of workspace would be best for your business needs? Have you thought about the differences between coworking, serviced offices and leasehold office spaces?
If not, then we’ve got you covered. We’ve put together some information on each type of office space. You’ll learn the about the differences and some of the advantages and disadvantages each type of office space has to offer. Let’s get started!
Leasehold Office Spaces
This is a traditional type of office space used by businesses around the world. If you choose this type of office, you’ll need to look for commercial office space that’s ready to rent.
Advantages of a Leasehold Office Space
- Contract period: a leasehold office usually provides you with a 3-year contract. Once you have the space, you’re there until the lease is up. As a result, it’s important to first determine if your business is likely to expand or not. And don’t forget that there are times when it’s necessary for a company to downsize. With a traditional lease, you’re there for the duration whether or not your business scales up or down.
- Control over the space: with a traditional leasehold office space, you’ll have more control over how the office is decorated, the arrangement of office furniture and more. It’s easy to “brand” the space to fit your company.
Disadvantage of a Leasehold Office Space
- Long move-in time & disruption of business: with a leasehold, you’ll only be able to move in when the landlord gives the OK. Some landlords only allow tenants to move in once everything in the office is set up and ready to go. This can include office furniture & equipment, utilities and more. Keep in mind this doesn’t just affect when you can start operations in the new office. The long wait may also disrupt business operations, causing serious delays for clients and business partners. This can have a negative effect on your business.
- Pay for everything: before you can even start setting up the new office space, you’ll need to buy office furniture, equipment, have all utilities installed, an IT network built and setup, and more. And with a leasehold office space, you’ll have to pay for any repairs due to damage. All of this can be costly for your business, with large unexpected expenses cropping up at the worst times. This can make budgeting a problem over the long-term.
- Lack of flexibility: with a leasehold workspace, you’ll have a lack of flexibility. For instance, if your company expands or downsizes, it will be necessary to stay in the space until the contract is up.
- The hassles: you’ll need to expect some hassles when leasing a traditional office space. These can include paying & setting up of utilities, cleaning and maintenance, and more. When there’s a problem, you’re responsible, not the landlord.
Serviced Office Spaces
A serviced office space is quite different from a leasehold office space. For one, these are usually managed by an operator and are located in a building in a prime business district. Here, you’ll find everything that you need to run the business.
Advantages of Serviced Office Spaces
- Move-ins are easy & fast: when you’re ready to move into a serviced office space, you won’t have to wait. Before you move in, the facility will have everything you need. With a service office, all the office furniture & equipment are included in one monthly fee. You’ll also have access to an IT network and more. This will all be ready and waiting on the day you move in. Just move in and start working—that’s it!
- Flexibility: not only will you enjoy a flexible contract, but service offices generally have room for your business to expand. You’re company can grow or downsize as needed because you’re not fixed to a specific lease period, as with a traditional office space.
- Affordable solution: a serviced office may appear to be too expensive at first glance, but keep in mind that everything’s covered by one monthly fee. This all-inclusive fee covers everything from office furniture, accessing office equipment, the IT infrastructure and more. You don’t have to worry about paying utilities, maintenance and cleaning costs—and you may enjoy some other great amenities with a serviced office space.
Disadvantages of a Serviced Office Space
- No control over the space: when it comes to décor, you won’t have control of what elements are contained in the serviced office space. You may also have to share such amenities as conference rooms and more. On the other hand, if you’re looking for a modern, clean design in an amazing office space, then a serviced office is a great option for your business.
Coworking Office Spaces
Coworking office spaces are quite different than a traditional office setting. They’re generally shared workspaces, which provide a cost-effective workspace for anyone looking to exchange their home office or an office space.
Advantages of Renting a Coworking Space
- Cost-effective solution: with a coworking space, you’ll find that the cost is more affordable than a leasehold office space. Coworking spaces offer the same amenities as a serviced office, but at a lower cost. The cost is calculated on the cost per person in a coworking space. If you’re working on your own, this may be a great option for your company.
- Flexibility: you’ll find contracts are flexible with a coworking space. You can choose from short-term or long-term contracts, whichever best suits your business. Plus, you’ll be able to work when you want, a coworking spaces provide a more flexible work schedule.
- Socializing: coworking spaces are a great way to socialize and network. They’re especially great spaces for freelancers and entrepreneurs, as it’s easy to find inspiration working with others who are like-minded. It’s also the perfect space to network and collaborate with other business professionals.
Disadvantages of Coworking Spaces
- Lack of privacy: coworking spaces are usually not a great choice if you need privacy. For instance, if you offer proprietary services and information, a coworking space may not offer the privacy you need. When working with business partners and clients, the same applies. There’s a lack of privacy and it’s difficult to keep conversations from being overheard.
- Unable to brand premises: with a coworking space, you’ll be unable to brand your particular space. However, a few coworking spaces do offer private spaces where you can choose the décor and more.
When you’re ready to make a decision on what type of office space to lease, be sure to consider your budget, along with what type of space provides the most flexible lease options, the type of atmosphere your company needs (more privacy or open for making connections), and more. With the right type of office space, your company is sure to succeed.