Co-working and serviced offices are short-term work spaces. They are both excellent options for businesses needing a flexible, affordable, and convenient office without the lengthy and expensive contracts that typically come with commercial offices.
But what is the difference between the two, and which one should you choose? We’ll explain in this blog.
Co-working offices are shared between multiple companies, teams, and individuals. They are typically open-plan, communal spaces designed for networking and collaboration.
In a co-working office, you can find a variety of facilities, such as coffee tables and sofas for casual meetings, spacious tables for larger conferences, and private zones for those who want to get their heads down. Depending on the location and provider, additional amenities, such as cafes, food outlets, kitchens, social areas, and showers, might also be on site.
However, as their primary function is to encourage networking, these spaces are quite basic in terms of equipment. They have plenty of seats and desk space, but that’s essentially it. Co-working offices generally look a little something like this:
Given their flexibility, co-working offices operate a short-term booking system. Price structures vary between providers, but you can normally book them by the day, or you can pay a monthly fee and use the facilities as often as you like during that time.
There is also a hotdesking option, whereby you simply book a desk for the day, or just a few hours if that’s all you need. Some providers also charge per head, so the larger your team, the larger the fee.
Co-working offices are suitable for a variety of individuals and business sizes. They are particularly popular among freelancers and remote workers who typically work from home, but might need some social interaction, inspiration, or simply a change of scenery.
They’re also handy for micro-businesses and small and medium-sized enterprises (SMEs). Companies of this size have limited resources, so co-working spaces are a cost-efficient way to access basic office facilities, without the heavy price tag or commitment of a traditional office.
Large, established companies may also find co-working offices useful, especially if they have remote or hybrid workers, employees in various locations, or need a temporary workspace for a brainstorming session.
Networking opportunities: One of the main reasons for choosing a co-working office is the networking opportunities. You’ll have the chance to meet people from a variety of industries and backgrounds, share ideas, and make new professional and personal connections.
Flexible: Another significant benefit is flexibility. Whether you need a place to conduct job interviews, a desk for a few hours to finish a project, or a conveniently located office space for your employees to work from for a month, there are many co-working options to choose from.
Cost-effective: Simply pay for what you need, for as long as you need it, allowing you to use your budget as efficiently as possible. There are also no additional costs to worry about, such as hefty deposits, equipment costs, maintenance fees, or energy bills - everything is covered in the price.
Busy: Co-working offices can get crowded. If you live in a busy city centre or a workspace at short notice, you might have fewer options available to you.
Distracting: The social element of co-working offices can be distracting. For example, if you need some quiet time to focus on a task, or if you need to take a confidential call, you might struggle to find the privacy to do so.
Lack of control: Hotdesking makes it difficult to make a co-working office your own. Maybe you’re used to a certain desk set-up at home, maybe you need a monitor to work more effectively, or maybe your shared desk hasn’t been cleaned properly - all these factors give you less control over your workspace, which could negatively impact your productivity.
Can be expensive: While they’re generally seen as cost-effective solutions, co-working spaces aren’t always the most financially viable option. According to Servcorp, the average hotdesk in the UK costs £203 per month. This may be a worthwhile cost for a start-up with several employees, but for a freelancer who normally pays nothing to work from home, it’s a significant cost to bear.
Serviced offices are fully equipped, move-in-ready workspaces. Picture your typical commercial office, but with a rolling monthly lease that you can manage to suit your exact business needs. They look something like this:
Like co-working offices, serviced offices are temporary and flexible. However, as the above photo shows, a key difference between them is privacy.
We explained earlier that co-working spaces are designed for, well, co-working; they’re social and collaborative, hence their open-plan internal architecture. Serviced offices, however, are individual, private offices within the same building.
While you share the building with other companies, you have your own dedicated serviced office that only your business can access during your lease. There’s also no need to worry about unavailability or overcrowding, which you’re always at risk of with co-working offices.
Another difference between these two office types is the equipment they come with. Unlike co-working offices, which only offer the essentials, serviced offices are fully equipped with professional supplies.
Desks and ergonomic chairs come as standard, but you will also generally find calling and videoconferencing technology here to help you streamline your business processes. Simply bring your laptop, plug it in, and you’re all set for a productive meeting.
Serviced offices also tend to include:
Serviced offices are generally more useful for businesses rather than individuals. They are larger, self-contained office spaces that appeal more to groups or companies with employees.
More specifically, SMEs might find a serviced office suitable. Not only is it more affordable than a commercial office, but it’s also more adaptable, allowing you to manage business risk more efficiently.
Adaptable: Serviced offices operate on a rolling contract, allowing you to easily adapt to your business size and needs - whether you’re expanding, downsizing, or relocating.
Cost-efficient: With a serviced office, you pay for the space you need, for as long as you need it, meaning nothing is wasted. Therefore, you can rest assured that you’re using your budget efficiently.
All-inclusive: There’s no need to worry about additional or hidden costs. Cleaning, broadband, maintenance, and utility fees are all included.
Make it your own: Unlike a co-working office, you can personalise a serviced office (depending on the provider’s rules). Display your company logo, incorporate your brand colours, or display personal items on your desk to add some character to the space.
A professional image: Whether you’re meeting with a big client, hosting a team meeting, or interviewing a potential recruit, maintain professionalism with your dedicated serviced office and a reception team to greet your visitors.
Competitive location: Depending on where your serviced office is, you can set your new business up in a high-profile, competitive location (like London) from day one at a fraction of the cost of a traditional office.
Neighbours: While you have more privacy, serviced offices are still part of a communal space, so be aware of other businesses using the building and shared facilities.
Financial commitment: Typically, you will need to pay a deposit and enter into a licence agreement with a few months' notice for either party, which is a larger financial commitment than a co-working agreement.
There are many similarities between co-working and serviced offices. Both are modern solutions for today’s business professionals looking for flexible, affordable, and convenient workspaces without ongoing financial commitments.
However, the main differences between the two are that serviced offices are for private business use and are better equipped for productivity.
Are you a small business owner looking for the perfect service office? Here at 71-75, we have everything you need under one roof. From ergonomic furniture and high-end tech, to all-inclusive fees and a dog-friendly environment, you’ll be well set for a successful day in the office with us.
We’re also conveniently located in the heart of London, so no matter where you, your staff, or visitors are travelling from, there are plenty of easy transport links for them to reach your serviced office.
Book a tour of our modern serviced offices today, or email us at enquiries@71-75.co.uk to request a callback.
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