What is right for your business?

Are you considering a serviced office or co-working space for your business?

Conventional leases:

Conventional leases typically run for a period of between 3 and 9 years. Any longer and stamp duty becomes payable.

The lessee is responsible for the rent of the premises and, for everything associated to them. So the lessee will be responsible for arranging for:

• the premises to be furnished and carpeted,

• the IT to be installed and networked,

• the telephones and broadband to be installed,

• the offices and windows to be cleaned,

• reception to be manned,

• obtaining quotes for all property related maintenance,

• entering into maintenance contracts for the air conditioning, fire alarms, emergency lighting, and lifts (if not in a shared building where they are covered by service charges),

• calling in tradesmen for ongoing repairs to lights, door handles, and locks, etc.,

• paying all property related bills,

• providing breakout areas for staff and the provision of tea, coffee, milk, etc.,

• dealing with security and confidential waste,

The amount of space required will be determined by the number of employees, the workspace required for them, the meeting space required, and the size of the breakout area(s). This could mean that you are paying for space that is not fully utilised but required by your business to meet Customers and satisfy staff.

Conventional leases make it more difficult to expand or contract. You either have to sublet the area you no longer want or need, or you have to find a replacement tenant, so as to release you from your commitment. If you outgrow your premises, you have to find new larger ones and then either sublet or find a replacement for your old premises and, you have the upheaval of moving and going through the whole exercise again.

Serviced offices: The alternative to a conventional lease, but with a much shorter commitment, typically 1 year, but can be as little as 3 months. You only take the space you need to work in and “buy” the meeting room time you need; no paying rent for meeting rooms used only half the time. Your staff share the breakout area with other residents of the serviced office provider, leading to a wider community feeling, particularly for small offices. The serviced office provider takes on all the responsibilities of the premises and the maintenance of them, leaving you free to concentrate on your business. The capital costs of networking, broadband and telephone connections are often provided by the serviced office provider. The serviced office provider will furnish and carpet the office and provide a reception service for you. They will also source tradesmen for repairs and pay all property related bills. You only have their invoice to pay. When your business expands or contracts, it may be that your serviced office provider can enable you to move to another office, better suited to your new size, within the same premises, minimising your downtime due to relocation. The serviced office provider will offer a range of additional services and access to resources, some on a “pay as you go” basis, that you might find useful or time saving.
	Co-working: Co-working is where you rent a dedicated desk(s) in a workspace shared with others. The term of the rental is typically a month but, maybe by the week. You book meeting rooms as and when needed on a “pay as you go” basis, but you share breakout areas with others, giving a community feel. The provider of the co-working desk(s) will offer a range of other services and access to resources, that you can use as required.

PBS Workspace can provide you with serviced offices or co-working desks, to help your business grow, by taking over the headache of premises management. Check out what’s included in our charges here.