1. What is included in serviced offices?
Serviced offices offer fully furnished, set up, and ready-to-use private and shared office space for rent. In addition to offices for rent, clients benefit from access to shared amenities including kitchen areas, breakout spaces, reception, etc. A large number of providers offer meeting room hire, hot desking and virtual business address and other virtual office packages.
Serviced offices are available for rent based on flexible terms offering spaces office rental on short-term basis. In recent months serviced offices in Sydney recorded a high increase in demand for rent workspace by the hour, hot desking and short term office space.
It is becoming obvious that the demand for flexible office space is increasing rapidly. Serviced office providers and operators of coworking spaces sydney CBD, as well as suburban locations, responded to the growing demand by providing instant offices Australia has been waiting for. Rent workspace by the hour is now a solution widely available in the coworking space Sydney CBD and suburban markets.
2. Conventional Office Space for hire
While Serviced offices for rent are fully set up – a turnkey solution for small business owners, the conventional office spaces most of the time are presented as an empty shell. It is up to the new tenant to configure the space, organise furniture and connect utilities (electricity, internet, etc).
Commercial landlords are usually reluctant to offer flexibility. Despite a huge increase in demand for short-term rental Sydney – wide, as well as in other capital cities, the majority of commercial properties will only consider a long-term arrangement.
The lack of flexibility is also visible when it comes to the amount of Bond or Bank Guarantee required. Some landlords ask for an equivalent of 6 or even 9 months and require the company director to take a personal guarantee as well which potentially is a huge risk.
3. Comparison
The below table provides a comparison between serviced office / coworking and commercial office space hire market.
If you are thinking to rent office space, we encourage that before you make any decisions you review your options carefully.
Give us a call if you wish to get some more information – we are happy to discuss your requirements and answer any queries you may have regarding office space to rent
| Serviced Office (Coworking Office) | Conventional Commercial Office Space | |
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| CONTRACT TERMS | Short term office space is available (month to month office rental) | Long-term contracts: 3-5 years’ preferred |
| SIGN-UP PROCESS | Easy process, short and transparent terms and conditions. No additional cost is involved. | Lease agreements are usually drafted by the landlord’s solicitor and checked by the lease solicitor. The legal cost varies between $2 – $5K. The process can take up to four to six weeks. |
| ENTRY COST | Low deposit/security retainer (usually it doesn’t exceed 2 months of the office price). | A security bond or bank guarantee is required Usually it is required that an equivalent of 3- 6 months’ of rent is paid as a bond. The majority of times landlords require Company Director’s personal guarantee. Public liability insurance is also mandatory. |
| THE OFFICE | Choice of private and shared workspace is available Turn-key office space – ready to move-in Condition: freshly painted and cleaned Fully furnished Internet – fast-speed internet is available to use. A custom setup is available. Electricity – included in the monthly fee Air-conditioning – set up and regularly maintained |
Empty shell As is – any refurbishment or maintenance is No furniture The tenant is responsible to set up an internet connection (usually a minimum 1-year agreement with ISP is required. Service connection: 4-6 weeks. The tenant must connect their own electricity supply Existing air-con. The majority of times tenant is responsible for the maintenance. |
| INCLUDED AMENITIES | Reception and waiting area Collaboration areas Shared work space and hot desks Telephone booths Meeting rooms Casual office spaces for project work Kitchen with free tea/coffee, cutlery and appliances provided Toilet, shower, lockers – supplies replenished daily Comms room |
No amenities included |
| CLEANING | Daily cleaning included Waste removal and recycling included in the price |
Not included |
| SUPPORT | On-site support available Online members portal Registered office service (selected providers) |
No support |
| ADDITIONAL SERVICES | Reception/Concierge service Mail and courier management Telephone answering Business support Photocopier access |
No additional services offered |
| HEALTH AND SAFETY | Managed serviced office COVID-Safe plans in place Drills, Audits and compliance managed by the office provider |
Not included |
| SECURITY | CCTV Access control Visitor management |
Not included |
| FLEXIBILITY | Downsize or expand your office when needed Business Continuity service available after the move-out |
No flexibility |
| VALUE-ADD | Networking and community events Collaborate with other members Network benefits Access to other locations |
No value-add services |
Serviced Office (Coworking Office)
CONTRACT TERMS : Short term office space is available (month to month office rental)
SIGN-UP PROCESS : Easy process, short and transparent terms and conditions. No additional cost is involved.
ENTRY COST : Low deposit/security retainer (usually it doesn’t exceed 2 months of the office price).
THE OFFICE :
Choice of private and shared workspace is available
Turn-key office space – ready to move-in
Condition: freshly painted and cleaned
Fully furnished
Internet – fast-speed internet is available to use. A custom setup is available.
Electricity – included in the monthly fee
Air-conditioning – set up and regularly maintained
INCLUDED AMENITIES :
Reception and waiting area
Collaboration areas
Shared work space and hot desks
Telephone booths
Meeting rooms
Casual office spaces for project work
Kitchen with free tea/coffee, cutlery and appliances provided
Toilet, shower, lockers – supplies replenished daily Comms room
CLEANING :
Daily cleaning included
Waste removal and recycling included in the price
SUPPORT :
On-site support available
Online members portal
Registered office service (selected providers)
ADDITIONAL SERVICES :
Reception/Concierge service
Mail and courier management
Telephone answering
Business support
Photocopier access
HEALTH AND SAFETY :
Managed serviced office
COVID-Safe plans in place
Drills, Audits and compliance managed by the office provider
SECURITY :
CCTV
Access control
Visitor management
FLEXIBILITY :
Downsize or expand your office when needed
Business Continuity service available after the move-out
VALUE-ADD :
Networking and community events
Collaborate with other members
Network benefits
Access to other locations
Conventional Commercial Office Space
CONTRACT TERMS : Long-term contracts: 3-5 years’ preferred
SIGN-UP PROCESS : Lease agreements are usually drafted by the landlord’s solicitor and checked by the lease solicitor. The legal cost varies between $2 – $5K. The process can take up to four to six weeks.
ENTRY COST : A security bond or bank guarantee is required Usually it is required that an equivalent of 3- 6 months’ of rent is paid as a bond. The majority of times landlords require Company Director’s personal guarantee. Public liability insurance is also mandatory.
THE OFFICE :
Empty shell
As is – any refurbishment or maintenance is
No furniture
The tenant is responsible to set up an internet connection (usually a minimum
1-year agreement with ISP is required. Service connection: 4-6 weeks.
The tenant must connect their own electricity supply
Existing air-con. The majority of times tenant is responsible for the maintenance.
INCLUDED AMENITIES : No amenities included
CLEANING : Not included
SUPPORT : No support
ADDITIONAL SERVICES : No additional services offered
HEALTH AND SAFETY : Not included
SECURITY : Not included
FLEXIBILITY : No flexibility
VALUE-ADD : No value-add services
4. Office price comparison based on the space for four people
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