Choose wisely – coworking space or serviced office

Office redefined

There’s a new word in downtown. Businesses are adopting flexible offices.

In a recent survey conducted by Cushman & Wakefield and WeWork, around 800 people were asked how would they divide their worktime between a flexible office space and at home. 

The result has shown that the majority of people would like to work from flexible office spaces for more than 50% of their time.

Remember, when we talk about flexibility, we don’t just mean versatile work schedules for employees. 

Employers who use flexible office spaces do so because they want to maintain their adaptability in the face of economic uncertainty. 

These incredibly flexible office designs can be quickly scaled up or down to accommodate varying team sizes at any given time. They are incredibly simple to adapt to changing business objectives. Although they are becoming more common, their diversity can be quite perplexing. 

Understanding their differences will be crucial for you as a business owner to choose the appropriate office space that best suits your needs and objectives. 

Coworking and serviced offices are the two most successful ways of exploiting these flexible workspaces.

Which is which

Although a lot of business owners are already familiar with the two definitions above, let’s go over it one more time. 

An office space that is rented out by a property management company is referred to as a serviced office. 

Depending on their size, a company may rent a private office, executive office suite, an entire floor, or several floors in a building. 

A serviced office is typically a fully furnished office suite that is ready to use when you move in, unlike traditional office leases.

The relative newcomer in terms of office workspaces is coworking. 

For independent contractors, business startups, small businesses, and freelancers, coworking offers adaptable workspaces. 

In terms of amenities, services, users, and atmosphere, coworking spaces vary. Others are better suited to serious concentration and are preferred by entrepreneurs who are well beyond the start-up phase of their businesses. Some are more laid-back, with ping-pong tables and some space for Friday night cocktails and community lunches.

Pros and cons

Cost of setting up

The affordable setup costs of both offices present a major benefit. It’s not necessary for business owners to purchase pricey office supplies like AV equipment and printers. Instead, because resources are typically shared with other clients in the building, you offset the cost of resources.

But whichever way a business goes, it is a fact, that leaving traditional office spaces behind is the smart thing to do financially.

Robin, a company dealing with hybrid workspace solutions polled 247 business owners recently. 83% of businesses currently operating with a hybrid work model are doing so as a cost-saving measure.

And 46% of those companies are currently utilizing only half of their available office space or less. 

Expanding office space

Coworking spaces give you the flexibility to gradually add a new workspace with a hot desk and dedicated desk space as your team expands. 

A team member using a hot desk can choose freely where they will sit for the day – just plug in and start working. 

But coworking definitely has its limits when it comes to adjusting to a growing team

Your company might eventually outgrow a coworking space. If you begin to have many employees in various departments, serviced offices may be a better option. 

It is more difficult to expand in coworking spaces than in serviced offices. A serviced office will have more flexibility in providing you with a larger office within the same building.  But it is also common that they let you upgrade your lease to include more space.

Networking

Here, coworking space prevails. 

These public areas are designed to foster interaction between those in related professions. 

A coworking space might be shared by one or more businesses. 

Coworking spaces also frequently end up being the preferred location for events and industry talks. As a result, this workspace is advantageous to business owners who want to network with people in related fields.

Image and atmosphere

On the one hand, coworking spaces can provide you with a fun and active work environment. They typically exude a more relaxed atmosphere, which creates a lively environment that serves as a fantastic alternative to working from home. 

On the other hand, serviced offices typically portray a more professional image. The number of meeting rooms, private office space, common area, and even the colour of your walls can all be customized in some serviced offices.

To sum up, one could argue that coworking spaces are more for the individualistic professions, freelancers, and digital nomads.

Whereas serviced offices cater to more established companies, who would like to leave behind the constraints and restrictions of traditional offices.