As businesses start to employ hybrid work models and agile, flexible ways of working, which are often referred to as a working environment, we have seen a significant increase in demand for flexible serviced office spaces. Statistics has estimated that flexible office space will represent a USD 50 billion market by 2030, with serviced offices being a key driver of that market. This trend is also strong in India, where flexible workspaces were reported to be growing at a double-digit compound annual growth rate in metro areas such as Delhi, Mumbai and Bengaluru. One of the favourable options within this ever-changing landscape is a serviced office – a fully furnished, ready-to-use workspace that encompasses convenience, infrastructure and scalability. But what is a serviced office exactly, and why are businesses choosing to have one?
A serviced office is a flexible office space offered by an office space provider that has been furnished and fully equipped with everything you need to simply run your business. The main difference from a traditional office is that you can rent a serviced office based on your operating requirements without making a big investment. Serviced offices are offered with flexible terms (monthly, quarterly, yearly, etc.) and the benefits of no long-term leases, no huge initial costs, and no operational headaches. Serviced office providers will offer high-speed internet, conference rooms, all your IT, furniture, receptionist services, and an “all-in, everything paid rate” (includes outgoings and cleaning, etc). Serviced offices offer massive benefits over traditional fixed lease offices, where your business now has to invest in fit-outs, furniture, security systems, and so on. Quite simply, when you rent a serviced office, you plug-and-play and your business is operating. This is invaluable for new businesses that need to start up quickly or for ones that need a temporary work base but want to retain some professionalism. Serviced offices range from co-working to private desks to full floor solutions; serviced offices can be used by businesses of all shapes and sizes in order to remain agile while reducing overheads.
While serviced offices were primarily popular amongst startups and freelancers, today they serve a much larger audience. So, who should look into a serviced office? Here is the breakdown:
So, ultimately, any organisation that needs speed, flexibility and operational efficiency could utilise serviced office space.
The advantages of serviced office space extend beyond a few points of flexibility and convenience. Some of the most important benefits are:
The advantages above in particular work across many diverse industry sectors, in a world within a business environment where speed, agility and presentation are key, these are not only considered advantageous but strategic.
One of the most common queries among business owners is this: Are serviced offices cheaper than paying for the rent of an office? The answer depends on what you consider cost. In terms of paying rent on a square footage basis, traditional leases may be more affordable. However, when you start to consider all of the other costs associated with a traditional lease – furnishings, IT infrastructure, hiring staff, maintenance, utilities, cleaning, and long-term commercial commitments – the serviced office concept is a more affordable choice for many businesses.
Take this into consideration: A traditional office may require a capital outlay of ₹10–15 lakh, or more, for an average to mid-size space. Conversely, an average serviced office can be occupied with a minimal deposit and pay a monthly fee for all operational aspects of the office space. Furthermore, serviced office spaces have eliminated the risk of losing money with underutilization of space, depreciation of assets, and/or unanticipated costs of repair. For companies focused on their ROI, agility, and cash flow, the serviced office model makes sound financial sense.
In Tier-1 cities like Delhi NCR, Mumbai, Bengaluru, and Chennai, serviced office monthly rates may be between ₹10,000 to ₹25,000 per seat, depending on area, and type of serviced office amenities. This price may appear higher at first; however, given the risks and the services, there is definite value in a serviced office environment.
Nowadays, serviced offices are no longer merely an alternative to the traditional office. They stand as a modern business enabler with a custom choice from a professional working environment with a lot of flexibility in the fast-changing economy. Small-staff overhead, ease of operation, and eyes for some very impressive locations are a huge advantage to growing ventures as well as to corporates. Whether it is setting up a new start-up, breaking ground into a completely new market, or interpreting operational complexity, serviced offices surely warrant favour as a cutting-edge forward workspace solution.
