When choosing a workspace, one of the first questions businesses face is whether they should opt for a serviced office or a traditional office. Each option has its own set of advantages and drawbacks, and the choice ultimately depends on your company's specific needs and goals.
With the workspace landscape evolving rapidly—especially post-pandemic—understanding the key differences between these two models can set your business up for success. In this blog, we’ll break down the pros and cons of serviced offices vs. traditional offices to help you make an informed decision.
If you’re looking for a flexible, modern workspace in the heart of Belfast, Custom House offers serviced office solutions that cater to businesses of all sizes.
Serviced Offices Vs. Traditional Offices
What is a serviced office?
Before jumping into the pros and cons, let’s define a serviced office. A serviced office is a fully furnished, ready-to-use workspace that typically includes utilities, office equipment, and even reception services. These offices are managed by a third-party provider (like Custom House) and can be rented on flexible terms. Businesses can move in and start working right away without worrying about setting up infrastructure or managing day-to-day operations.
You can learn more about serviced offices in our dedicated article.
What is a traditional office?
A traditional office is what many businesses are familiar with—a long-term leased space where the tenant is responsible for everything from furniture to utilities and office maintenance. Traditional offices often come as a blank canvas, requiring companies to furnish and set up their work environment from scratch. Contracts for traditional office spaces tend to be longer, with multi-year lease agreements being the norm.
The pros and cons of serviced offices
There are many benefits of opting for a serviced office for your business, including some of the main ones:
- Flexibility and scalability. One of the most significant advantages of serviced offices is the flexibility they offer; you can rent a space for as little as a few months, allowing businesses to scale up or down easily depending on growth or downsizing. This is ideal for startups, growing businesses, or companies with project-based teams. At Custom House Belfast, we offer fully flexible office spaces for teams of all sizes, with no need for deposits or long-term commitments.
- All-inclusive services. Serviced offices often come with all-inclusive packages, meaning utilities, internet, office furniture, and amenities like meeting rooms, kitchens, and cleaning services are part of the deal. This eliminates the administrative hassle and allows you to focus entirely on your core business activities. For example, Custom House provides everything from high-speed internet to stocked kitchens and even wellbeing perks like yoga classes and wellness rooms, all included in your monthly fee. Check out our services here.
- Immediate availability. Serviced offices are ready to move into immediately. There's no downtime for setting up or refurbishing an office, which means you can start operating as soon as you sign the lease. For businesses in a hurry, this can be a game-changer.
- Professional image. Many serviced offices are located in prestigious business areas, giving even small businesses access to high-end office spaces they might not otherwise afford. Custom House, located in Belfast's city centre, offers stunning views, fully furnished offices, and modern meeting rooms, perfect for impressing clients and partners.
Here are the two things that might make serviced offices unsuitable for your business:
- Higher monthly costs. While the all-inclusive nature of serviced offices can be a benefit, the monthly fee tends to be higher than the cost of renting a traditional office, especially when measured on a per-square-foot basis. However, this higher upfront cost often saves businesses from unexpected expenses, as everything is included.
- Limited customisation. With serviced offices, you may face some restrictions on customisation. Since the office space is shared and managed by a third party, businesses may not be able to redesign or personalise the space as much as they could in a traditional office. At Custom House, however, this is not an issue. Chat with us about your specific needs.
The pros and cons of traditional offices
Traditional offices might benefit you if you are looking to have complete control. When leasing a traditional office, you have full control over how the space is designed and used; whether you want to knock down walls or create a highly customised layout for your team, the space is yours to tailor as you see fit. This can be particularly appealing to businesses that want to create a specific brand experience or workplace culture.
Another benefit a business can have by opting for a traditional office space is cost efficiency over time. For businesses that plan to stay in one location for the long haul, traditional offices can be more cost-effective, with the per-square-foot cost often being lower than serviced offices, especially if you are willing to sign a longer lease.
Flipping the benefits of serviced offices on their head, these are often the cons of traditional offices. Long-term commitment, hidden costs and set-up time being among the biggest cons that come with opting for a traditional office.
Choosing the right option for your business
Now that we’ve explored the pros and cons of serviced offices vs. traditional offices, how do you decide which is best for your business?
- Startups and small businesses: if you're a startup, small business, or expanding rapidly, the flexibility of a serviced office is likely your best bet. The ability to move quickly, adapt to changing needs, and avoid long-term commitments is invaluable.
- Established businesses: larger companies with stable growth and needing a permanent base may prefer a traditional office. The opportunity to fully control and customise the workspace can sometimes outweigh the need for flexibility.
- Hybrid teams and remote workforces: with more companies adopting hybrid or remote work models, serviced offices are becoming an increasingly popular choice. These setups offer the perfect balance of professionalism, flexibility, and convenience without the overhead of managing an office full-time.
Why Serviced Offices Are the Future
Both serviced offices and traditional offices have their advantages and drawbacks. The decision really boils down to your business’s size, growth prospects, and need for flexibility. As more companies embrace hybrid work models, the serviced office model continues to grow in popularity, offering the flexibility and convenience modern businesses require.
At Custom House Belfast, we believe that the benefits of serviced offices—from cost-effectiveness to enhanced wellbeing programs—are too significant to overlook. For companies of all sizes, serviced offices offer a professional, scalable solution that aligns with the fast-paced nature of today’s business environment. View our office spaces here.
If you’re interested in learning more about our serviced office options, contact us today and discover how Custom House can support your business needs with a flexible, all-inclusive workspace.