What costs can you expect when renting a serviced office?
By renting a serviced office companies can not only keep their overhead costs low, but also save time so that they can concentrate on the smooth operation of their core business. In this way, a serviced office increases the company’s productivity and the company image by giving employees access to well-maintained equipment and quality resources in a nice environment.
In the case of a serviced office, choose the monthly or annual office lease. This is the best way to assess the business needs of the company, taking into account how much time the colleagues spend in the office, and based on this adjust the costs to the size of the business.
If you are planning to work in the office building for the long term, the annual office lease is the best solution, but if you are working on a limited-time project, a monthly office lease may work better. Flexible serviced office providers are open to work with their partners for long but also for short term. This means offering flexible, customized leases that are suitable for emerging start-ups and even large companies. Whether you’re looking for a short (serviced office) or long (conventional office) term lease, personalised contracts are designed to meet your ever-changing business needs.
The cost of a serviced office depends on many factors
Basically, the cost of a serviced office depends on how many employees the company has and how many workstations it needs. The cost of different offices may vary depending on the services provided and the location of the building. The monthly rental fee covers the majority of the costs of the main services and facilities, however there may be additional charges for extra services. What are these? For example, meeting rooms are typically charged by the hour, printers require an upfront payment to operate, and there are office service providers which also charge for Internet access.
There are no maintenance costs for a serviced office
The rental fees in ‚A class’ office buildings are between €15-20/m2 per month in Budapest, at the end of 2022.
The average rent for long-term office leases in Budapest and Bucharest is €300-350/workstation/month + VAT, while in TIER2 Eastern European cities such as Debrecen it is more like €250-300/workstation/month.
This means that an office with a long-term rent of €17/m2/month + VAT is available at around €340/workstation, calculating with 10 m2 GLA per workstation. In other words, the all-inclusive price of a serviced office is roughly double of the long-term rent (based on DBH research). Although, when renting a serviced office, the maintenance costs are included in the rent, which makes it easier for companies to manage their budget and save money as they do not need a maintenance staff. Therefore, especially in today’s uncertain economic situation, a serviced office is the best choice.
The serviced office has another major advantage, you can move in immediately. From a financial point of view, renting a serviced office can be of great benefit to an emerging company. Unlike traditional offices, there is no downtime when moving in, as the space is already fully furnished, has reliable internet access and all the necessary equipment as the client requests. This not only means that our partners can avoid the costs of conversion, renovation and furnishing the premises, but also that they save time and therefore rental costs.
Serviced office vs conventional office
Although traditional offices provide full control over the design, occupation and management of space, they are subject to CAPEX or capital expenditure, which can be significant; depending on the size of the space and the level of work required to create an efficient office. In the case of a serviced office, the office cost becomes an OPEX (operating expense) cost rather than a CAPEX cost, which eases the pressure on smaller businesses or start-ups.
However, as you are paying for flexibility, convenience and services, be sure to find out what is included and what is not before you purchase.
There is also one major difference, both require an upfront deposit, but the amount varies depending on the length of the lease. Furthermore, if you decide you would like to move, the period of notice is much shorter for serviced offices and can be given up to one month before departure.
Learn more about conventional office costs here.
