Business space specialists at Bruton Knowles have incorporated their own experiences of the serviced office sector when helping clients weigh up the pros and cons of taking on similar ‘stepping stone’ accommodation.
Many small businesses find themselves at a critical point uncertain whether to strike out in their own space or rely on the flexibility offered by serviced accommodation.
Head of agency at Bruton Knowles Bristol office Paul Williams said serviced accommodation is an ideal stepping stone for start-ups and sole traders.
He said: “As we finally emerge from the downturn many larger businesses – including Bruton Knowles where we have opened our Bristol office in serviced accommodation – have taken advantage of the speed and simplicity of serviced accommodation in order to move quickly in new areas and markets.
“The beauty of serviced accommodation is that it appeals just as much to firms on the expansion trail as those looking at ways of consolidating or cutting costs.
“Very few commentators were predicting the speed and strength of the recovery and the new business opportunities this has created almost overnight.
“As we have found for ourselves, serviced accommodation offers a quick route for businesses looking to tap into new markets and bridge the gap between where they are and where they judge they need to be.”
The serviced office sector is among the fastest-growing in the European and global property market although the recession has constricted activity over the past few years. According to figures from Office Broker.com Bristol has the highest priced serviced office space of all the regional cities surveyed with an average workstation price of £291.
That means that the calculation in Bristol may often make it cheaper to take more conventional office space.
Paul Williams said: “It is worth businesses weighing up the pros and cons. A short time in serviced offices means you can act quickly but in Bristol it can be cheaper to take a lease, especially now there are very flexible lease arrangements available.”
“When Bruton Knowles wanted to open a new office in Bristol we needed to move fairly quickly and looked at a number of business centres which would give us an instant foothold in the city’s commercial heartland.
“Unlike taking a conventional commercial lease, if you move into a business centre your tenancy will be measured in terms of months rather than years. If like us you are expecting it to grow reasonably quickly you can take an initial contract, normally for six months and then go onto a rolling three monthly arrangement thereafter.
“Some companies remain in a business centre for many years, whilst others will use it as a stepping stone whilst they sort out their longer term property needs. Typically the time to think about moving out of serviced accommodation and into leased premises may be when you have around 10 staff or you need to employ support staff in house, rather than relying on the services provided in the business centre.
“The serviced office market has clearly come of age but that hasn’t made the decision whether to go for flexibility or a conventional lease any simpler. As always obtaining the most up to date feedback on the local office market helps firms make up their mind what best suits their needs as business accelerate away from the downturn.”
FACT FILE SERVICED OFFICES: PROs
· Ability to accommodate immediate requirements for office space in a flexible manner, facilitating fast office set ups and relocations
· No need to buy furniture, or desk phones, as most business centres offer fully furnished plug and play style office space at short notice.
· No need to sign a lengthy and complicated lease document. In the vast majority of cases you will be asked to sign a simple ‘licence to occupy’.
· Chance to network and cross sell with a variety of other businesses in the same centre
· Generally occupy prime business locations in city or town centres
Cons
· Can be eye-wateringly expensive with costs per sq ft significantly higher than for comparable bare office space
Little or no opportunity to extend your business brand and corporate style into your office space.
· Less visibility and lower profile in market place
