Most small businesses reach a point where the team needs a room with a door. The choice is between leasing an office and taking a serviced one, and the two are priced so differently that comparing them takes a little care. This is the comparison, line by line.
What a lease really costs
- Rent, usually quoted per square foot per year, often with upward-only reviews.
- Business rates, set by the local authority and paid by the occupier.
- Service charge for the shared parts of the building.
- Utilities and internet, each on its own contract.
- Fit-out and furniture, paid up front, and dilapidations to put the space back at the end.
- Insurance, cleaning and maintenance, and the time it takes to arrange them.
- Legal fees for the lease, a deposit, and a term of three to five years.
What a serviced office costs
One monthly fee. At ShiftWorks that figure covers the furnished office, superfast internet, heating, lighting and electricity, cleaning, the meeting rooms and boardroom, the kitchens, printing, a registered business address with a mailbox, and access around the clock. Offices start from £450 a month in Chester and £400 a month in Hoylake, plus VAT, on a rolling agreement.
Flexibility
The second difference is time. A lease commits you for years; a serviced office commits you month to month. For a business that might double in size, or shrink, or go fully remote, that matters more than the monthly figure. Growing from a two person office into a six person one at ShiftWorks is a conversation with the team, not a new lease.
When a lease still makes sense
If you need specialist space, such as a workshop, a lab or a shop front, or you are large enough to fill a whole floor and want to brand every inch of it, a lease can be the right tool. Serviced offices are at their best for teams of one to around a dozen who want to arrive, plug in and work.
A worked example
Take a team of four. A serviced office for four at Royal House is one invoice a month, with the internet, cleaning and meeting rooms already in it, and the team can move on at short notice if plans change. The same four people on a lease would need to budget for rent, rates, a service charge, broadband, furniture, insurance and a fit-out before anyone sat down, and would still be paying for it for several years to come.
Questions to ask any provider
- What exactly is included, and what is charged separately?
- What is the notice period?
- Can the office grow with us?
- Are the meeting rooms included, and how are they booked?
- Is there a deposit?
- Does the price exclude VAT?
If a lease is what you have now and you are curious what the alternative would cost, send us the size of your team and we will reply with a like for like figure.
