Serviced office

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A serviced office is an office or office building that is fully equipped and managed by a facility management company, also known as an office provider, which then rents individual offices or floors to other companies. Serviced offices, also referred to as managed offices, flexible offices, business centers, executive suites or executive centers, are often found in the business districts of large cities around the world. A serviced office broker will commonly help business center owners and facility management companies to rent serviced office space. Companies offering serviced offices are generally able to offer more flexible rental terms, as opposed to a conventional leased office which may require furnishing, equipment, and more restrictive leases. Space is normally flexible, allowing for additional space to be allocated at short notice, should the size of an individual business change. Serviced office providers often allow tenants to share reception services, business machines and other resources, providing reduced costs and access to equipment which may otherwise be unaffordable. By providing businesses with access to a workplace, technology and people central to its operations, the serviced office can be considered a type of virtual office. Serviced offices are a central component to the flexible workspace industry. [1]

Contents

History

Pioneers of the serviced office industry in the United States are recorded as early as the 1960s, with the creation of OmniOffices in 1962, followed by the launch of Paul Fegen's furnished law suites for attorneys in 1966. [2] The concept then spread abroad to Australia, where Alf Moufarrige founded ServCorp in 1978, [3] and to the U.K. where the Fuchs family launched a business center in Northampton, England, in 1979, which is still open under their family brand OSiT (Office Space in Town Ltd). [4]

During the 1980s, serviced offices in the major US business cities, evolved from law suites into business centers. [5]

In the United Kingdom, the concept of working together and sharing premises, staff and other overheads was at first primarily used by barristers. They normally band together into "chambers" to share clerks (administrators) and operating expenses. Some chambers grow to be large and sophisticated, and have a distinctly corporate feel.[ citation needed ]

The advances in computer technology during the 1980s reduced the amount of staff required to operate a serviced office, and increased the technologies a serviced office could offer its clients, including access to computers, voicemail, and fax machines. Richard Nissen founded Business Space Ltd. in London in 1980 and was a pioneer of the new digital exchange telecommunications system that used electronics to place and transfer telephone calls. [6]

Now primarily virtual offices offering businesses a place, people and technology, serviced offices became an industry. Seminal reports on the industry were carried out by DTZ in the early 2000s, and published with the British Council for Offices. [7] The National Audit Office of the UK has produced a guide to help Government Departments and public bodies to assess the case for flexible managed space instead of conventional office space. [8]

In November 2014, a business report carried out by the Business Centre Association (renamed the Flexible Space Association in 2019) [9] showed that serviced offices in the UK are using 70 million square feet of space, house around 80,000 businesses, provide over 400,000 jobs and generate in the region of £2bn to the UK economy. [10]

Coworking spaces are a branch of serviced offices that add elements of collaboration and community to the workspace. The term was coined by Bernard de Koven in 1999 and has since become a popular trend for start-ups and international satellites. [11] [12]

Client types

Clients of serviced office facilities fall into the following categories:

Services

Services typically include:

Facilities

Facilities typically include:

Benefits

Serviced offices may offer benefits over conventional offices for new or dynamic businesses, including:

Shortcomings

Brokers

A serviced office broker is a company or individual that arranges transactions between a party interested in renting serviced office space and a business centre / office space owner, also known as an office provider. The serviced office broker then makes commission when the deal is made. [15]

To fulfil the goal of finding clients to rent serviced office space, a serviced office broker will often do the following:

Notes and references

  1. "Infographic: Types of Serviced Offices". AllWork.Space. 2016-03-07. Retrieved 2019-08-20.
  2. "Flexible Workspace Timeline – Text Only". AllWork.Space. 2015-04-04. Retrieved 2019-08-20.
  3. Pupic, Tamara (2017-05-21). "Forty Years And Counting: Servcorp's Long-Serving CEO Alfred George Moufarrige". Entrepreneur. Retrieved 2019-08-20.
  4. "OSiT: A family business since 1979". www.officespaceintown.com. 2017-09-06. Retrieved 2019-08-20.
  5. Holusha, John (2001-05-20). "Commercial Property/Business Centers; Modern Office for Rent: Daily Rates Available". New York Times . Retrieved 2011-10-08.
  6. Meunier, Jo. "Richard Nissen: The Virtual Office Pioneer". Alliance Virtual Offices. Retrieved 2019-08-20.
  7. "British Council for Offices Launches NextGen Competition: Imagining the Office of 2035". ArchDaily. 2017-05-11. Retrieved 2017-08-30.
  8. "National Audit Office".
  9. "FlexSA". FlexSA. Retrieved 2019-08-20.
  10. "Business Centres Contribute £2bn To Uk Economy". orega.com.
  11. "The History Of Coworking In A Timeline | Deskmag | Coworking". www.deskmag.com. Retrieved 2019-08-20.
  12. "GCUC Global Coworking Stats 2017-2022" (PDF). Global Coworking Unconference Conference.
  13. Hindley, Julian (15 August 2023). "The Leasehold vs Serviced Office Debate". officebroker.io.
  14. "Coworking Is The New Normal, And These Stats Prove It". AllWork.Space. 2019-05-10. Retrieved 2019-08-20.
  15. "Real Estate Agents and Brokers". www.bls.gov. Archived from the original on 2000-04-10.

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