Serviced office

A serviced office is an office or office building that is fully equipped and managed by a facility management company, which then rents individual offices or floors to other companies. Serviced offices, which are also referred to as managed offices, business centers, office business centers, executive suites, or executive centres, are usually found in the business districts of large cities around the world.

Serviced offices originated in the 1980s in the major US business cities, evolving from call centers for traveling salesmen. [http://query.nytimes.com/gst/fullpage.html?res=9C03E0DC133AF933A15756C0A9679C8B63&sec=&spon=&pagewanted=2] The business evolved into one of global scope with the founding of the Regus global brand, originating in Brussels in 1989. [http://www.regus.com/switch/www/aboutus/default.htm]

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. Because no long term commitment is usually required, serviced offices are especially popular with business startups and small scale representatives of large companies. Space is normally flexible, allowing for additional space to be allocated at short notice, should the size of an individual business change.

Serviced offices often allow tenants to share business machines and other resources, providing reduced costs and access to equipment which may otherwise be unaffordable. The facility generally includes security, reception and mail support. Some serviced offices primarily offer hot desks. There may also be additional facilities such as conference rooms, meeting rooms, break out areas, and services such as secretarial support; these are often available on a pay-per-use basis.

Clients of shared office environments fall into the following categories:

* Entrepreneurial - Small businesses or enterprises which do not wish to make the financial commitment to a longer term lease deal. This class of client likely also benefits from not having to add administrative and support personnel to payroll, with all the pursuant HR costs (benefits, insurance, recruitment).
* Locational - Businesses which are typically headquartered abroad or in another region of the country which require a business presence in the area of operation of the business center. Very often, these are sales or business development teams.
* Overflow - Typically a large company experiencing growth, with traditional leased space in the area which it has outgrown. These can be short-term requirements (3-6 months) for large number of users (as many as 40-50).
* Interim - Clients that are in the process of moving from one space to another, and may be facing delays in the completion of the new space.
* Project-based - Clients that have a specific need for office space, based on a specific contract or project. Examples include film production teams or attorneys in the discovery process.

Facilities and services typically include:
* Full time security
* Insurance
* Heating, air conditioning and other utilities
* Telecom connections
* IT infrastructure and internet connectivity
* Furniture

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

* No / low start up costs
* Prestigious addresses
* Flexible leasing
* Maintenance
* Immediate availability

External links

[http://query.nytimes.com/gst/fullpage.html?res=9C03E0DC133AF933A15756C0A9679C8B63 New York Times Article]