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For a long time now, businesses have been tied to the restrictive practice of long-term leases by the landlords who have of course proved to be expensive especially to the small businesses that are in maturity. Office space accounts for at least 20% of a company’s cost which is second to salaries. This is a lesson that management has learnt and has resulted to making use of the serviced offices to reduce this particular cost especially during the times of recession.
Reasons that are attributed to the increased use of the serviced offices are outlined below.
1) Flexibility – Many of business owners usually have a lot of things to deal with when it comes to their business. Office leases are one of the things that they have to think about and if they have a lot of things going on it can be to not spend enough time negotiating and get trapped into a bad lease. Having serviced offices as your base of operations will assist you in managing your business deals without worrying too much about the management of the premises. Flexible leases can also be offered on such types of offices that will eventually help you to increase your focus on managing the business.
2) Minimal time wasting – After only 24 hours of inquiry, you can find no commitment housing for your business. The office space can be utilized without wasting too much time, and in these days of cash flow problems, that time saved might be very beneficial to operations. The hassle that is usually involved in finding, negotiating and then signing a lease will not even be felt when you make use of serviced offices.
3) Limited expansion time – When the time comes when you make a decision that you want to expand, a serviced office will offer far more flexibility than a traditional lease. This also applies to the reverse of this situation, such as when market conditions require the contraction of the business. You will be able to downgrade the space that is needed so that financial resources can be allocated to other areas where they are more needed. Again, this is something that is very difficult with a traditional lease.
4) The location – Another crucial advantage of having serviced offices is the location. Most of the businesses do better when they are located in the prime areas. Such locations are often very difficult to secure or obtain any rental space. The advantage that the serviced offices offer is that they’re located in these prime areas and you will have to agree that businesses will flourish better when they have such five star addresses.
5) Accessibility to a network of business – The serviced offices give a business the opportunity to cross sell easily with a number of other businesses that are in the same building. This is attributed to the fact that these days majority of the businesses reside in serviced spaces in contrast with the past where only the start-up or the small businesses resided there.
It has been proven that the serviced offices are of great beneficial help, so as the economy pulls itself out of recession, now is most convenient time to break the chains of restrictive conventional leases and make the transition to flexible office space agreements.
