Leasing office space in any one of Australia’s major cities is not difficult, especially when it is a renter’s market. Furthermore, with the numerous leasing options and alternatives to conventional leasing available, business owners can now choose from a variety of office spaces. Businesses have so many choices available to them that it is easy to get lost in finding the best office space.
Of the two major office setups, the serviced office and the conventional office present renters with a number of options. Choosing which one is best all depends on the needs of your business, and more importantly, your business budget. When choosing between a serviced office and a conventional office, you should keep in mind a number of considerations.
Let’s take a look at some of the factors that come into play when choosing which office plan is right for your company.
The leasing terms for both office styles are very different. The serviced office lease provides businesses with furnished space at a drastically reduced rate. In addition, the initial start-up costs for a serviced office are much lower than with conventional leases. Servcorp serviced offices have some of the most competitive rates in the country, for example. Because the costs are much lower, the serviced office is a more affordable option for start-ups, the self-employed and others who might need to watch their budget.
The conventional office, conversely, costs the renter a whole lot more than the serviced office. After a person has signed a lease for conventional office space, they then must come up with first month’s rent, a deposit that usually is one month’s rent, and depending on the leasing company, additional deposit money, which can be extremely expensive for smaller businesses. Typically, over the time of the lease, renters can spend into thousands of dollars in between rent and management costs.
The terms for a serviced office tend to be a little more flexible as well. Many leases do not require you to commit to a protracted contract. In fact, many leases only require you to commit to as little as a month early. Furthermore, because the leasing company provides all of the furnishing and amenities, there are no other contractual issues making you responsible for the maintenance of the property, even though you are leasing the space.
Conventional leases, on the other hand, require you commit to at least a year, and to get the benefit of bargains, you might have to commit to at least a five to seven year lease. On top of this, you might get a lease that is all-inclusive, or one where you pay for the utilities separate from the rental. Additionally, the leasing terms regarding maintenance of the office can be murky as well with some leasing companies taking full responsibility for the property and others only covering certain areas other than common areas.
The serviced office lease provides renters with more flexibility in terms of scalability. If your business grows or relocates, the serviced office can simply modify the lease and provide your business with the extra space and furniture, this can be done within weeks. With a conventional lease, you pretty much have to orchestrate an entire move, and on your own, which can take months. Without a doubt, the serviced office is a much more flexible solution to office space.
The Right Office Depends On Your Needs
Depending on the type of business you are running, the serviced office or conventional office might meet your business’s needs. For those looking for more permanence, a conventional lease might be the way to go, and conversely, for start-ups and other businesses who need more flexibility the serviced office is an affordable option. Ultimately, the right office will give your business the professional image you want to project while providing your clients comfortable space to sit.