Finding a traditional office space can be a difficult, time-consuming, and expensive process. Serviced offices (also known as flexible workspaces) allow firms to create a presence in any place fast and for a low initial investment.
What is a Serviced Office?
A company’s requirement for office space may not always necessitate signing a standard lease on exclusive property that may or may not be suitable for its needs. Other choices exist, such as serviced office space. Due to increased demand, serviced offices are springing up in major cities all over the world.
A serviced office is a fully furnished, ready-to-use office hired on a pay-as-you-go basis by the occupant. A serviced office building is often divided into a number of floors or offices that are rented by several business tenants and is managed by an operator.
In addition to desk space, tenants have access to the services needed to run a successful business, such as reception assistance, conference rooms, kitchen and breakout areas, printing services, events, and networking opportunities.
Services such as conference room use or internet access may be priced separately on occasion. If you want additional protection, you can rent a serviced office on a monthly rolling basis or sign up for six months to a year in advance.
If you know you’ll want to stay, you can sometimes sign for a longer term (for example, a year).
In contrast to a traditional workplace, agreements are flexible, allowing you to upsize, downsize, or move out on short notice. Short-term leases are perfect for business owners who want to reduce risk or make a strategic move during lease talks.
Who Uses Serviced Office Space?
New businesses may use coworking spaces or virtual offices on occasion, but they are more likely to turn to serviced office space. Startups prefer serviced offices because they will enjoy the exclusive space that they need without committing to a long-term financial commitment. Others who use a serviced office include:
- Companies that are well-established and want to set up remote locations.
- Companies that are restricted by space
- Organizations in need of temporary office space while expanding
- Companies or organizations who need temporary project space
- Pop-up companies that will only be in town for a short time
How Much Do Serviced Offices Cost in the US?
Small businesses account for 99.9% of all companies in the United States. And renting an office space is one of a company’s largest operating expenses. But how much does serviced office space rent cost? This is determined by the location, the size of the space, and the sort of office you require. Monthly charges are also affected by special facilities.
The average cost of office space in the United States is between $8 and $23 per square foot. When determining the cost of an office space, the first thing to consider is how many employees you have and where you need the office to be located.
The cost of renting an office is frequently higher if you live in a larger city where space is scarce.
After you’ve chosen a site, you’ll need to determine how many employees will want desk space. Many businesses base their pricing on square footage.
It should come as no surprise that renting office space in some cities is more expensive than in others. The typical cost of office rental per square foot varies depending on where you intend to open your business.
New York is the most costly city to rent office space in. The average cost of office space per employee in New York is around $14,800 per year. In New York, the average monthly rent for office space is $6.16 per square foot.
With a monthly average cost of $5.43 per square foot, San Francisco is a close second. That works out to around $13,032 per employee per year.
Atlanta is the most cost-effective city, with an average annual expenditure of $4,194 per employee for office space.
Renting office space is available in most big cities, but if you live in a smaller town or rural location, you may have to drive further.
Average Commercial Lease per Square Foot
As previously stated, the cost of office space is mostly determined by your location. Here’s how much office space costs in major metropolitan regions in the United States (as of 2019) to give you an idea of how much commercial rent prices per square foot might vary depending on where you are:
Average Commercial Office Space Pricing in the US
|US Location||Average $/sq. ft.||Contact|
|New York||$85.20||Get Office Quote|
|Houston||$31.40||Get Office Quote|
|Dallas||$28.90||Get Office Quote|
|Washington, D.C.||$59.70||Get Office Quote|
|Austin||$59.70||Get Office Quote|
|Chicago||$33.90||Get Office Quote|
|Atlanta||$29.80||Get Office Quote|
|Boston||$41.50||Get Office Quote|
|San Francisco||$92.70||Get Office Quote|
Another factor to consider is the type of workplace your company will require. A single office area may be sufficient to accommodate solo entrepreneurs or small teams, at least at first. An office suite may be better ideal for considerably larger organizations or fast-growing startups.
Finally, companies must account for other costs associated with office buildings, such as a reception desk, maintenance and cleaning personnel, mail delivery service, Internet, and parking space. Expansive provides fully furnished offices with fiber internet and WiFi, as well as a variety of on-site services, to business owners who rent with them. The all-inclusive price includes everything.
Are Serviced Offices Worth It?
While some serviced offices may appear to be more expensive than regular office space, when you consider the savings you’ll gain from not having any additional expenses, it might end up being much more cost effective. It’s all taken care of: business rates, local authority taxes, power, broadband, heating, air conditioning, security, maintenance, insurance, and extra facilities.
On a like-for-like basis, serviced office rates in shared business centres are between 23 percent and 30 percent less expensive than conventional leases, according to a 2016 Business Centre Association research.
The fact that serviced offices are typically licensed rather than rented is one factor for cost savings. This is a less complicated agreement that allows clients to avoid paying pricey lawyer expenses. Companies don’t pay for space they don’t need because the conditions are flexible, allowing them to take on more just when they need it.
Enterprise software development experience. More recently in positions including CTO, Lead Developer and Head of Product in Australia. Deep expertise in property and legal technology in Australia with a specialty in lead generation and tech scalability across Asia-Pacific.