Struggling with long leases? Discover how DBS Serviced Offices offers the ultimate flexibility, cost control, and scalability, making it the smart choice for growing businesses and startups.
Choosing and finding the right office space is a big decision and one that can impact the success, or failure, of a business.
Conventional office spaces have perceived benefits such as a lower cost (rental per square foot), stability and complete control over the property. But is this the full picture? No, it’s not.
There are many, considerable disadvantages – such as inflexibility (for upsizing/downsizing), high initial costs and significant ongoing liabilities and responsibilities (such as dilapidations when you need to end the lease).
Serviced offices/Flexible workspaces are perceived as expensive, having add on costs and lack of control. But that is based on misunderstanding and misrepresentation.
With flexible, serviced office space, you eliminate dozens of bills and unpredictable overheads. You also save time on operational issues as someone does it all for you!
Serviced Offices/Flexible Workspace pros and cons
Advantages: Key Benefits for Your Business
Instant move – In & Minimal outlay:
Offices are fully furnished and equipped, allowing you to move in within days or weeks. This eliminates massive initial capital expenditure for fit-out, furniture, and IT setup.
All-Inclusive, Set Cost:
A single monthly fee covers rent, business rates, utilities, maintenance, cleaning, security, and high-speed internet. This simplifies budgeting and enables cash flow management.
Total Flexibility & Scalability:
Contracts are short (maximum 12 months) and flexible. You can easily add desks, downsize, or move location with minimal notice, perfect for growing startups or teams, that may change – whoever knows 100% what the future holds?
Built-in Amenities & Support:
Access to shared facilities like staffed reception, meeting rooms on a pay as you go basis, breakout space and amenities like kitchens, green space, local amenities (shops, bars, restaurants). Less space is needed because of shared facilities, reducing costs for sq ft/m office space.
Community & Networking:
Sharing a building with multiple other businesses creates built-in networking opportunities and a vibrant, collaborative atmosphere.
Disadvantages: Potential Challenges for Your Business
Higher Cost Per Square Foot (Long-Term):
While upfront costs are low, the monthly fee is generally higher than a conventional lease because you’re paying for other services and overheads (utilities, business rates etc.) included. You also must pay towards the management service.
Limited Customisation & Branding:
Within some provider space, you have limited control over the office design, furniture, and layout. It can be challenging to create a truly bespoke office if you have a unique company culture and strong brand identity.
Less Privacy:
Sharing common areas, kitchens, and reception with other companies can be a concern for businesses dealing with highly sensitive or confidential client information.
Shared Facilities:
Meeting rooms and other amenities are shared, which can sometimes lead to booking conflicts or bottlenecks, especially during peak times.
Conventional Office space pros and cons
Advantages: Key Benefits for Your Business
Total Control & Branding:
Complete autonomy over the office design, layout, and fit-out. You can fully customise the space to perfectly match your brand, culture, and specific operational needs.
Long-Term Costs:
Over a typical 5 to 10-year term, the base rent per square foot is generally lower than a serviced office. You choose the add ons – fit out, IT, furniture, decoration, repairs, utility provider etc.
Stability & Security:
Long lease terms (generally 3–10+ years) provide a high degree of business stability and a sense of permanence, allowing you to put down deep roots in a location.
Enhanced Privacy:
Your office is an entirely private, self-contained space. There are no shared common areas or other tenants to worry about, ensuring maximum confidentiality.
Disadvantages: Potential Challenges for Your Business
High Upfront Outlay:
Requires a significant initial investment for security deposits, legal fees, fit-out, furniture, IT infrastructure installation, and professional consultants.
Full Management Responsibility:
You are responsible for all non-core business activities, including arranging and managing utilities, cleaning contractors, maintenance, IT support, and business rates, repairs and exit fees. This drains internal time and resources.
Long Move-In Time:
The process, from searching and legal negotiation to the fit-out and moving in, can take 3 to 12 months or more. This is unsuitable for businesses needing immediate occupancy.
Lack of Flexibility:
You are locked into a long-term contract and fixed square footage. Scaling up or downsizing mid-lease is extremely difficult (if at all possible), costly, and time-consuming.
The Takeaway for Business Owners
Ultimately, the choice between a serviced office and a conventional lease hinges on balancing your current business needs with your long-term vision.
· Serviced Offices are the choice for startups, small or large teams, and businesses who need flexibility to grow to more space, or reduce if required, and to focus on their business. They offer a risk-minimising, flexible platform to grow.
· Conventional Leases may suit huge companies with a clear, stable long-term forecast who need total control over their physical environment and can absorb the high upfront costs, ongoing repairs and renewals and post occupancy dilapidations.
Ready to find the perfect workspace for your team?
Dbs managed offices have flexible workspace with serviced offices in Castle Donington (Derby, Nottingham), Glenfield (Leicester) and Ashby de la Zouch (Burton on Trent, Birmingham)
