As UK credit continues to crunch many house hunters are bypassing the traditional route of mortgage and equity in favour of the short-term savings and flexibility of renting. However, are the benefits of residential renting also applicable to the commercial property sector?
No longer just the default alternative for cash-strapped companies, the appeal of serviced offices over buying or conventional leasing is becoming increasingly apparent. Beyond the obvious practical and logistical benefits (fully fitted and furnished, technologies already installed and managed through the building operator, and so on) serviced offices fundamentally offer great flexibility in a volatile and mercurial economy, allowing a company to reconcile the need for a base with existing and fluctuating overheads.
As the fortunes of a company can quickly change in accordance with the market, businesses are understandably reluctant to over-commit to rigid and lengthy overheads for fear of being hoisted by their own ambition. Therefore the short-term nature of serviced offices, in addition to their good availability in the UK, means that a business can not only find a space to suit its initial requirements but retains the luxury of easily expanding or downsizing to suit their circumstances.
Furthermore, the dedicated business facilities offered by serviced offices, often including meeting and conference rooms (whether shared or private), can impart a greater sense of professionalism that may not be available through smaller, purchased premises. The importance of appearances can’t be overstated – the impression gained by a customer walking into a marble-floored reception and being greeted by someone at the front desk who whisks them into a plush meeting room will be far better than buzzing themselves into an office over shops in the high street. Serviced offices can provide a backdrop that more accurately represents the ambition of the occupant, and flirting with a potential client is possibly more productive in a rented palace than a purchased matchbox.
With rising overheads and an unpredictable economy, very few businesses are perennial; yet in property terms the financial flexibility offered by serviced offices is perhaps the most fertile ground on which to grow an empire. And with the Telegraph’s recent revelation that FTSE 100 energy giant Petrofac (valued at more than $8 billion) began life in a serviced office, others can see the benefits of building on flexible foundations.
