Seven reasons why switched-on SMEs are seeking serviced office shelter during the current economic downturn.
Abbey Business Centres Ltd, the award-winning UK serviced office provider, reports a 37% increase in enquiry numbers over the last 12 months. Julie Calder, Managing Director, explains why she believes savvy businesses are increasingly choosing the serviced office option.
1) Flexibility – 2014 is a long way off…but 5 years is the average length of time businesses commit to in conventional space. Can anyone confidently predict what their business priorities will be in 2014? Smart businesses stay ahead of the game and switch to serviced accommodation so they can mitigate their risk.
Julie Calder says: “A serviced office enables businesses to commit to much shorter time scales, starting from just 3 months. However our average client actually stays for over 3 years. As the gap between average serviced office residence and the duration of conventional leases narrows, businesses are becoming less willing to commit to the more restrictive conventional terms”.
2) Cash Flow – Serviced agreements allow for better budgeting. Unlike conventional space where tenants pay quarterly in advance, serviced office clients ‘Pay as they go ’on a monthly basis and only for services they use.
Julie Calder comments: “Our latest survey of recent move-ins showed that 100% agreed that the actual cost of the office and services matched what was negotiated. We’ve banished the myth that serviced office providers hit businesses with hidden costs after they move-in’.
3) Space Efficiency –In the UK, office space typically accounts for 20% of a company’s overall costs. In a conventional lease, businesses which have downsized their head-count are often left paying for space they no longer use. Serviced office agreements provide greater flexibility for businesses to increase or decrease their space requirements to match their evolving business needs.
4) Speed – In theory you can sign a serviced office agreement and move-in on the very same day. Serviced office providers such as Abbey provide a ‘Ready to Go’ space; fully furnished with ‘Plug and Play’ broadband and telecoms access at each workstation. There are no lengthy lead times waiting for suppliers to install or switch on their services either. Your workers can move-in and get straight down to business.
5) Reduced Staffing Costs – Support staff, including a team of receptionists, are incorporated in the cost of a serviced office. These highly valuable and expensive resources are shared equally amongst all clients leaving your staff to concentrate on your core profit making activities.
6) Test New Geo Markets – Since the early 1990s, serviced offices have become increasingly popular and now have a presence in all major cities across the globe. Shrewd businesses are using serviced space to test untried geo-markets before going to the huge expense of setting up a permanent base. This ability, along with the speed to market, allows them to stay ahead of the competition.
7) Access to a network of businesses – Serviced offices give you the chance to network and cross sell with a variety of other businesses residing within the building.
Serviced offices provide a solid grounding on which businesses can consolidate or expand their operations at a price which is also affordable. To protect your business through the recession and to ensure you are in the best possible situation in which to grow in the future, you now maybe have time to shut the door on conventional office deals.
If you would like to discuss your office space requirements please call Gary Mostran or Reena Potanah now on 0207 397 8300 or visit our website
Notes for Editors:
Abbey Business Centres was established in 1998 and opened its first business centre in Glasgow, Scotland. The company provides serviced office space as well as meeting rooms and virtual offices in 13 locations across the UK. There are currently 70+ employees and notable clients include BT, 02 and The Trainline.com.
For further information, please contact:-
James Finch – Online Marketing Executive
Tel – 0207 397 8300