Serviced Office or Coworking Space: Which Option To Choose?

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Why Serviced Offices And Coworking Spaces Are Growing In Popularity 

If your business is part of the modern trend whereby staff have flexible schedules or maybe even work from home regularly, serviced offices and coworking spaces are a great option for you. Companies with a smaller retinue of staff can also benefit greatly from serviced offices and coworking spaces, while if your business is trying to adhere to a tight budget, these two types of workspaces can help you avoid spending huge sums on purchasing an office space.  

What Differentiates Serviced Offices And Coworking Spaces? 

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A serviced office generally gives businesses more privacy. Though they are located in a ‘shared’ space with communal areas that anyone can use, there are office rooms that can be rented out to serve as a private office space. These types of offices are ideal for startups and even SMEs who would like the prestige of having an office space that’s fully-furnished and cleaned, but do not want to pay the large sums of money it would take to buy and furnish an office from scratch.

Coworking spaces are similar, in that multiple businesses or individuals will be working in the same location, but they differ in that they don’t have full-time private offices as part of their layout. These office spaces are usually open-plan and allow individuals or small groups to rent desk spaces. If privacy is required, there are often meeting rooms that can be booked out, as needed. To navigate the complexities of the commercial lettings landscape, consulting with an office space provider like Compass Offices, who is specialised in flexible workplace, is highly beneficial. 

What Are The Pros Of A Coworking Space? 

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Coworking spaces have a lot of benefits that smaller businesses can make use of. These include: 

Flexible Pricing and Rent 

Instead of being tied to expensive, long-term rent contracts, you can rent a desk every month as you require. If your business grows, simply rent more desks, or find a coworking space that can accommodate more people. No waiting required. 

Network with the People around You 

Not only does it help you to create a sense of “community” offline, you’ll be able to meet up with like-minded business owners who might actually be able to help your business! After all, a co-working space is a social environment where a single conversation could turn into a business opportunity

Provided Amenities and Services 

Instead of having to fork out plenty of money to build your own pantry, meeting rooms and more, your coworking space will usually provide these amenities to you as part of your rent.  

Freebies and Perks 

Things like printers and beverages and even small snacks are often provided for free at coworking spaces.

What Are The Cons Of A Coworking Space? 

Coworking spaces, while budget friendly, do have some downsides, as a study in the UK has found it can limit creativity. Other downsides include: 

Noisy Distractions 

An open-plan office can get very frustrating if you have noisy neighbours. With no control over whom you sit next to, you could find that your coworking space is too noisy to get any meaningful work done.  

Minimal Privacy 

Not only will it be tough to have private conversations in a coworking space, but if you happen to be near a competitor, your company secrets may even be poached! 

Zero Branding 

f you’re building a strong brand and need your customers to buy into it, holding meetings at a coworking space might be a letdown. 

What Are The Pros Of A Serviced Office? 

Serviced offices are great for startups and SMEs for the following reasons. 

Cheaper Rent, Fully-Equipped 

Serviced offices require a lower upfront cost than buying an office and are often cheaper than renting a traditional office space with fitout cost. This is in conjunction with serviced offices coming equipped with things like furniture, Wi-Fi and much more!

Shorter Contracts, Greater Flexibility 

Instead of being forced to rent a traditional office for several years at a time, you can rent a serviced office for a much shorter period so that if your company grows or shrinks, you can rent a new space without having to wait.  

Private Spaces with Public Amenities 

You’ll have a private office that allows you to discuss sensitive topics and trade secrets without anyone overhearing. Amenities like meeting rooms, a pantry and toilets are provided by the serviced office space for public use. There’s even a cleaning service provided, so your office is always spick and span.  

What Are The Cons Of A Serviced Office? 

A serviced office, while relatively cheap, can also pose problems for some businesses such as: 

Limited Customisation and Branding 

Depending on the serviced office space’s rules, you may not be permitted to put up branding or fix anything to the walls or furniture since new tenants may move in quickly.  

Shared Facilities 

Shared amenities like meeting rooms can be in extremely high demand, so make sure to book them well in advance, so you aren’t left completely stranded when you need those shared facilities and amenities in a pinch.  


Depending on your budget, how much privacy you require, and the types of amenities you require, you should now have the knowledge to accurately pick between serviced office spaces and shared office spaces.

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