1/1/2019

Serviced Office Business Model

A new office lease is often an exciting event, yet there are hidden pitfalls that should not be overlooked. While it is self-understood that renting a space entails costs, which will make a considerable part of your overheads, not every business owner realizes that there’s more to it than a lease quote received from the landlord.

Refurbishment and maintenance, upgrades and purchase of office equipment are some of the things you might leave out of your budget. Those unforeseen expenses, together with the lease, may by far exceed your budget. Add to this the fact that you are usually bound by a long-term contract (3,5 or even 10 years), and you can be in the red before your business lifts off the ground. To avoid such a scenario, you may consider going for a serviced office.

What does a serviced office mean?

The serviced office business model presupposes an all-inclusive rent, i.e., a space operator provides all the facilities needed for your business activity including furnishing, office equipment, communication systems, maintenance, cleaning, and security. You can also rent a conference room, make use of IT support or a pantry on a “pay as you go” basis. Such managed office spaces are usually run by an on-site center management company that takes care of the tenants and addresses their needs.

Serviced office include all the necessary office equipment.

Because of its plug and play features, a serviced office is often mistaken for a coworking space. However, although these business models share some similarities, they are different. While serviced offices offer more privacy compared to shared workstations, they place little or no emphasis on the social, networking and community aspects.

The Serviced Office Business Model

Although the first executive suites company, which was built around the same principles as a serviced office, was established back in 1962, it wasn’t until the 1980s when serviced offices gained a strong foothold in the commercial world. Since then this business model has been strengthening its presence.

Often, serviced office operators rent an entire floor and sublet individual offices to other companies.

The serviced office business model operates in the following way: a proprietor rents an entire floor (or sometimes the whole building), refurbishes it, fits with all the necessary equipment and furniture, purchases amenities and then sublets individual offices to companies that don’t need or can’t afford larger space. Because serviced office operators have many clients, they make money by charging the tenants the lease fee which includes the use of the available amenities, utilities, maintenance, telecoms facilities, and management fee.

An operator charges the clients a bit more than their [operator’s] overheads, while the tenants don’t pay that much compared to the conventional lease considering that they don’t bear any additional expenses such as heating/air conditioning, electricity, security, maintenance, etc.

The costs of a serviced office vary depending on the location as well as the number of desks in an office, so it’s hard to give a market average. However, thanks to a serviced office, a company may save from 43% to 73% on office lease compared to the traditional rental by saving on the services that are usually not included into conventional leases.

Serviced Office Industry Analysis

Serviced offices are on the rise these days. In the agile and ever-evolving business environment, they meet the demand for flexibility, seamless integration, lack of heavy initial capital investment, and the possibility of a short-term lease.

They are chosen by new startups and well-established companies that are trying to avoid a long-term commitment with a lessor. Recently, there has been an upturn in investment into the sector which means a bright and promising future for serviced office operators.

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3. Benefits of Tagging Others

Social data also describes the interaction between social media users. While comments, likes, and shares are the most obvious forms of interaction on social media, tags are another form of communication between social media users. 

Tagging is one of the most effective tips for coworking on social media. When it comes to promoting your coworking space, tags do an amazing job at increasing your visibility. On Facebook, for instance, your post will have more reaches if you tag others:

Image credit: CENTRL Office

If you often organize events at your coworking space, you can tag the participants. If you have some special offers, tag someone who helps you promote them. Any tag conveys social data, as it transfers information from one user to another. It’s a great way to become more visible online and attract potential clients. 

In Conclusion

Like any other big data, social data has limitations, as not every social media user shares information. Nevertheless, social data is still very effective for marketing purposes, as it can help your coworking space become more recognizable. 

Using the above-mentioned social data techniques together will help you increase visibility, as they will help others find your coworking space more easily. In general, these techniques are aimed at targeting large numbers of people and help them easily navigate the space of social media to find the best coworking spaces. 

Platform

Location

Croissant

International

Included.co

International

Hubble

London

Coworker

International

Instant Offices

International

Pickspace

International

Share Desk

International

Happy Desk

International

DesksNear.me

International

DeskTime

International

Coworking London

London

Desk Pass

International

Copass

International

Coworking Wiki

International

Desk Surfing

International

Near Desk

US

Liquid Space

International

GoCoWo

International

Find Workspaces

US

Sneed

India

Ofixu

International

Meetings Booker

International

Qdesq

India

eWorky

International

Share your office

US

Spacelist

US and Canada

42 Floors

US

Office List

US and Canada

Coffices

International

Breather

US, Canada, Europe

Setting

Berlin

Key to Office

International

Peerspace

US and Europe

Bizly

US

Spacewhiz

India

Beewake

US and Europe

Awfis

India

Allofficecenters

Germany

Splacer

US

Lexc

International

Desk Camping

International

Worksnug

International

Seats 2 Meet

US

Coworking.Coffee

International

Commercial Cafe

US

Preferred Office Network

US

Heydesk

International

Office Freedom

International

Flexas

International

The Yard Coworking

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