What type of office space is right for my company?

Choosing the right type of office space for your company is a huge decision. It affects productivity, team morale, mental health, office attendance, talent attraction and retention, company culture and brand perception. It’s also probably your largest overhead. So, getting it right is key. However, it’s a confusing market out there, with so may office types offering a variety of commercial models. So, here’s a quick guide to explain all of the options, their pros and cons and which types of company each is best suited for.

Coworking

Renting an individual desk (or multiple desks), usually in an open plan area.  Desks are generally rented by the day,  or monthly/annual memberships. Most often found in urban areas. Some spaces offer Dedicated Desks, where you can rent the same desk by the month for a higher fee.

Perfect for  Small and new companies, occasional use, moving on from home working, independent workers and consultants and small companies with 2-3 workers.

Pros Lower cost than a private office and lowrisk - casual booking, or one month’s notice usually for cancellation. Spaces often have a good atmosphere, amenities such as barista coffee and organise social events. Networking can be a bonus.

Cons If you have a small team, renting can add up. Working in open spaces could be noisy, less private and less secure. Casual renting means moving from desk to desk each day, so you need to bring everything with you.

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Flexible Serviced Workspace

Private offices with shared common facilities, such as kitchens, breakout areas, gym, phone booths and bike stores. Fully serviced, usually well designed, with staff onsite to manage reception and building maintenance. Found in both urban centres and out of town developments (where free parking is often offered). Usually offer bookable meeting rooms and event space.

Perfect for Small to medium growing businesses, who want their own space with the flexibility to grow, with access to shared amenities which they wouldn’t be able to afford independently.

Pros Flexible – tenants can flex their office size up or down within the same location month by month. Low to medium level risk with flexible contract length and usually three months notice.  One bill for all office costs and everything from WiFi to milk in the fridge taken care of for you. Provides a professional space to meet clients and a home for your team.  Focus on your business, not your office.

Cons  The amenities are shared with other companies, over which you have no control. Flexible workspace operators usually lease the spaces, rather than own them, so there exists some risk that if they do not renew their lease, you may need to move.

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Managed

A hybrid between flexible workspace and leased models, Managed space offers complete private office suites, or floors, fully serviced, with their own amenities. Contracts are flexible and pricing inclusive of services and utilities.

Perfect for  a small to medium company needing a city HQ, who want a space to call their own. An option growing in popularity currently due to its balance of customisation and risk.

Pros – Reasonably flexible contract lengths; great for security as it is your space and your space only. You also have more control over office fit out and design, enabling a more customised, branded look; good for hosting clients and team morale. Fully serviced, so your team isn’t distracted by managing the space.

Cons – Medium risk level, as contracts are usually 24 months. Lack of ability to flex office size in the short term.

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Science Park

A mix of flexible workspace and leased buildings within a large park setting, often on university campuses, or in the countryside.

Perfect for Start-ups and growing companies who are in the science, technology and research sectors, needing lab space and access to academic talent to develop new products and services.

Pros Very similar set up to Flexible workspace, so the same shared amenities and commercial flexibility. Often on the sites of universities to maximise partnerships and talent acquisition.  An economic way to share and rent lab space.

Cons Rural settings may struggle to retain young talent.

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Leased

A lease is a  fixed, longterm rental agreement, usually with the landlord of the building.  As the tenant you have private use of a floor or building and are responsible for all fit out, utility bills and maintenance.

Perfect for Medium to large, established companies who want a long term base for their company, especially in premium grade city centre space, and control over their own space.

Pros Private, customisable office space whichyou can put your stamp on.

Cons High risk, as leases are usually five to ten years.  This isn’t a flexible option, so you run the risk of out growing it if you grow faster than planned; or costing you money in empty office space if you shrink your workforce unexpectedly.  All building fit out, maintenance and utilities need to be self-managed and self-funded.

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Owned

Owned office space is a traditional model and one which is on the decline, due to the fixed costs, economic instability and modern working styles. However, it can offer a secure home for your business.

Perfect for Established businesses with consistent year on year performance and steady work force numbers. Suits companies who’s office building or locations is central to their brand.

Pros Your own space, customised to your needs, speaking about your brand.  Creates a sense of home to your team and could improve retention and team work.

Cons The least flexible and likely most expensive option.  Your management team are  partly focusing on managing your space, not your business.  High risk, as building running costs are wholly payable by your company.

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Flex-Re Spaces are office search experts, working with clients to ensure that finding their perfect workspace is an easy and enjoyable process. As office search advisors, we make finding the perfect workspace for your team simple.  By clarifying your requirements, collating a short-list of high-quality options, arranging viewings, and negotiating the best deal on your behalf, we can ensure that choosing your next office is a successful decision. Contact us here for your free curated office shortlist.

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