With all-inclusive rents, instant occupancy, and flexible contracts, serviced offices are a popular option for plenty of UK businesses.
But what exactly are “serviced offices”? Hubble reveals all in this comprehensive article!
- What is a serviced office?
- What are the benefits of a serviced office?
- What’s the difference between serviced and managed offices?
- How much do serviced offices cost?
- How do I find and choose the right serviced office space?
- How Hubble can help
What is a serviced office?
A serviced office space is one that’s all set up and ready to go from the date you move in.
Another company manages utilities, bills and the daily maintenance of the building, so you’re free to hit the ground running without having to worry about installing broadband or hiring a cleaning company.
In short, a serviced office means you can focus on growing your business without all the hassle.
Serviced offices also offer much more flexibility and shorter-term contracts than traditional leased ones. These can range anywhere from one month to a few years, so they’re suitable for businesses that aren’t sure where they’ll be in a couple of years, like startups.
What’s more, serviced offices include all basic essentials as part of your rent. You can expect:
- Furniture
- High-speed internet
- Mail services
- Printers and photocopiers
- Audio-visual equipment
- Kitchen facilities
- Cleaning services
- Security staff
- Reception staff
Since workspace providers always strive to “out-do” the other, you can also expect additional, competitive amenities as part of your rent or on a pay-as-you-go basis. These include:
- Meeting rooms
- Event spaces
- Gyms
- Meditation rooms
- Bike storage
- Shower rooms
- Rooftop terraces
- Fitness classes
- Childcare facilities
- Travel services
The top benefits of a serviced office
Serviced office rentals offer businesses an array of benefits. But which ones come out on top?
1) Ease of move in
Since serviced offices are ready-to-go, it’s quicker to move in. There’s less paperwork, so you can move in immediately if you want. You simply turn up, plug in your IT equipment, and start working!
This allows businesses to minimise downtime, boost efficiency, and restart business operations without huge disruptions — saving both time and hassle compared to traditional lease options.
2) Greater control over cash flow
As you pay in an all-inclusive fee each month, budgeting becomes very easy. You know what you owe each month and won’t have any unexpected charges to throw you off.
Whether you’re a startup or established business, this gives you peace of mind knowing you’ll always be able to manage your cash flow more effectively.
3) Greater flexibility
Serviced office contracts are much shorter, offering greater flexibility for companies that need agility — whether that’s downsizing, upsizing, or ditching the office altogether.
For example, companies with serviced offices during the pandemic were able to quickly terminate their contracts without many problems.
However, this would’ve been significantly harder for businesses with managed or leased offices, as they would’ve been locked into longer contracts.
Serviced office vs managed office: what’s the difference?
At a glance, serviced offices and managed offices are quite similar. They both offer:
- A flexible workspace
- All-inclusive fees and facilities
- Office maintenance handled by a separate company
But, the key difference is that a managed office requires greater input from the tenant.
A managed office is like a “blank canvas”. You, the tenant, are the painter. You decide what you want to do with the space, including how many desks or the type of floor finish you want.
The workspace provider — such as Knotel and WorkPad — will then take care of the deliverables.
Since more work has gone into transforming it into a custom-built workspace, contracts usually start at 12 months. But instead of paying per desk, you pay for the space you occupy.
Serviced offices vs managed offices: the core differences
For ease, we’ve created a table featuring the core differences between serviced and managed offices. If you’d like to explore these in more detail, check out our comprehensive guide!
| Serviced Offices | Managed Offices |
| Minimum commitment One month. | Minimum commitment Typically one to three years. |
| Customisation Limited ability to brand the space. | Customisation Ability to brand the space. |
| What’s included? Utilities, maintenance, and the building’s wider facilities. | What’s included? Utilities, maintenance, and the building’s wider facilities. |
| Move-in time Serviced office rental allows you to move in straight away. | Move-in time The move-in time for managed office rental takes a little longer, depending on the fit-out period. |
| When to start looking 3 months ahead of the start date. | When to start looking 4-5 months ahead of the start date. |
Bonus resource:
- Serviced vs Managed vs Leased Offices: A Comprehensive Guide — your go-to resource to differentiate between and choose the right office type for your business.
How much does a serviced office cost?
While the price of serviced offices might appear high compared to managed or leased offices, they are often more cost-effective.
This is because there are no additional expenses — such as fit-out or local authority charges — so you can make significant savings or invest in other areas.
Serviced offices are also “licensed” — a simpler form of agreement that allows you to bypass expensive solicitor fees — which contributes to their cost-effectiveness!
| Serviced Offices | Managed Offices |
| Deposit Usually 2x rent | Deposit Usually 3-6x rent, dependent on credit checks |
| Cost-consciousness You’ll pay slightly more for serviced offices but gain flexibility, all-inclusive fees, and no fit-out costs. | Cost-consciousness Managed offices cost more upfront than serviced ones due to fit-out premiums, management, and similar flexibility levels. |
How location influences the pricing of serviced offices
Your chosen location will also influence the pricing of your serviced office. Knowing the average cost in your area is essential for budgeting and also establishing the office’s size and quality.
Our How Much Does Office Space Cost in London? guide covers UK averages for various types of office space. But here are some London averages as a starting point:
London-wide averages for serviced offices:
- Economical office space: £465 per desk per month
- Average office space: £605 per desk per month
- High-end office space: £775 per desk per month
The top 5 most expensive places to rent office space in London:
For companies looking to pay a premium for a prestigious address and competitive facilities, here are the 5 most expensive places to rent a serviced office in London:
The top 5 cheapest places to rent office space in London:
Here are the 5 most budget-friendly places to rent office space in London, helping you discover cost-effective options that offer value without compromising on functionality:
Bonus resource:
- How Much Does Office Space Cost in London? — A breakdown of serviced office costs using insights from our extensive dataset, freshly updated for Q3 2024.
How to find and choose the right serviced office
There are multiple ways a company can search for a serviced office space — and the method you choose will depend on your specific business needs. Here are two core methods below:
1) Flexible workspace brokers
Flexible workspace brokers (like Hubble) offer short-term workspace solutions to help companies scale as needed, avoiding the hefty exit fees and disruptions that come with traditional solutions.
Companies seeking serviced office space can start their search online. From there, you can create a shortlist, download floor plans, book viewings and rely on a Tenant Advisor for expert guidance.
| Pros | Cons |
| Greater Flexibility Flexible workspace providers offer plenty of serviced offices, with agreements starting at one month through to 3 years in term. | Risk of Third Party Sharing There are some providers out there who share your details with third parties, so you may end up dealing with a lot of calls and emails. |
| Broader Range of Workspaces Serviced office brokers offer a wide variety of workspaces under one roof, allowing you to explore numerous providers from a single platform. | Risk of Hidden Pricing and Fees Some providers may not give accurate information and pricing up-front, so you have to enquire to get the information you want. |
2) Going straight to a provider
Going straight to a provider means contacting the workspace’s sales teams to find a serviced office space. You handle the entire process yourself, keeping you in control but also responsible for all the legwork, research, and negotiations.
| Pros | Cons |
| A Strong Relationship with the Provider Since you’d be dealing with your potential new provider directly, you can get more of a feel for them and their team. | Less Access to Market Expertise Since you’ll be dealing with a salesperson at each space, rather than an expert in the office landscape, advice will be less specialised. |
| You’ll Be in the Detail Since you manage the entire process by going straight to a provider, you can be more in the detail of booking viewings, getting answers to questions and negotiating on a deal. | No Help Negotiating You’ll have to do all your negotiating yourself, rather than getting help (as you would with a broker like Hubble), which means you could miss out on a better deal.. |
Bonus resource:
- Getting Help With Your Office Search — a guide that covers the various ways to find serviced office space and determine whether a provider is trustworthy and reliable.
Who are the leading serviced office operators?
Since flexible office space kicked off one of the biggest revolutions in real estate for over a century, plenty of serviced office operators are available.
From Fora to Uncommon, these providers invest heavily in making their workspaces highly competitive. This means the facilities are designed to ‘out-do’ nearby buildings to give businesses the best experience.
Bonus resource:
- A Quick List of London’s Biggest Flexible Workspace Providers — Your handy list of London’s biggest flexible workspaces and brands, all of which you can book via the Hubble platform!
How Hubble can help
We help businesses give their teams great places to work. Our easy-to-use platform allows you to easily find an office space via our three workspace solutions: Full-Time Offices, Part-Time Offices, and Hubble On-Demand.
From there, you can easily browse for serviced office space, create shortlists, and book viewings. Our expert team of Tenant Advisors will also send you recommendations based on your needs, attend viewings with you, and negotiate the very best rate on your behalf — all for free!
If you’re looking for your next serviced office and you’d rather have an expert take care of the search, reach out!
