GUIDE: RENTING A COWORKING SPACE OR SERVICED OFFICE IN HONG KONG
Times are changing; unlike in the past, business owners are now looking for more flexibility when it comes to starting and managing a business. They try as much as possible to reduce their operational costs while growing their businesses. This has led to the popularity of Coworking Spaces and Serviced offices. Interestingly, the concepts of Serviced Offices and coworking spaces have become a worldwide phenomenon. Start-ups, entrepreneurs, and early-stage companies take advantage of these arrangements to reduce their operational costs drastically and grow their business at the pace they want.
What is a Serviced Office?
What came to your mind when you first heard of serviced offices? You probably thought they were too expensive, a waste of resources, and are only suitable for start-ups…
Well, that is what most people think whenever they hear about flexible workspace solutions.
But in reality, serviced offices are more affordable than you think. Any SMEs or MNCs can rent a serviced office for their local office or headquarters.
Generally, a serviced office is a well-furnished and equipped working space located in a building that an operator manages. Users of these flexible workspaces are charged on a monthly basis for their private office space with either a short term (month-to-month) or longer term contract (up to 24 months lease contract), Most of the amenities within the serviced office such as meeting rooms are on a pay-as-you-use basis while others such as the pantry and coffee machine are free of charge.
Most serviced offices can accommodate companies ranging from 1 to 200+ employees, depending on the size of your company. However, when you rent a coworking space, you will use shared services like meeting rooms, reception areas, breakout facilities, and server rooms.
Serviced offices go by many names, including executive office, managed office, shared office, and business centers.
What are the benefits of Serviced Offices?
It doesn’t matter whether you are an international MNC or a start-up entrepreneur; renting a serviced office is good for your business. Here are some of the benefits of using a serviced office;
#1. Flexible Short Term Lease
The rental terms of serviced offices are flexible. Depending on what you need, the contract can be for a month or few weeks. You can also be charged on a pay-as-you-use basis. It doesn’t matter whether you are a large corporation, small enterprise, or start-up; you will enjoy the flexibility that comes with serviced offices rental terms.
Renting a serviced office can also improve your employees’ wellbeing and personal satisfaction. They will work in a more organized and conducive environment, spend less time commuting, achieve greater independence, and enjoy more flexibility. This will make your workforce more effective and productive in discharging their duties.
#2. Cost-Effective
The cost-effectiveness of serviced offices is one of the reasons it has become so popular in recent times. The only thing you pay in a flexible working arrangement is the space you use. And these shared offices are well equipped and furnished. As a result, you don’t have to pay additional bills or incur unnecessary maintenance costs.
More importantly, you get charged based on what you use. In other words, service offices operate on a pay-as-you-use basis. Again, you don’t experience downtime while in a coworking space. It also helps you free some cash that you can use to offset other important business expenses.
With a flexible work solution, your company will have improved financial performance through cost savings. In addition, it enables your business to free up enough capital to invest in value-generating assets and initiatives.
#3. Access to All the Needed Facilities to Run a Business
Most times, start-ups and early-stage companies may not have the resources to access all the equipment they need to run their business.
However, serviced offices or coworking spaces equips businesses with enough facilities to run their business, these facilities include meeting rooms, conference rooms, pantry, phone booths or server room.
#4. Access to New Market
If you are looking to expand your business to a new location or access a new market, serviced offices make it a lot easier.
You won’t be thinking about paying a huge amount in leasing an office, getting it equipped, doing your own renovation, and paying other bills that come with it such as electricity bill, water bill, management fees of the commercial building.
All you need to do is contact a reliable agent who can help you get the perfect coworking space or serviced office. Regardless of the market you want to access, a flexible workspace solution reduces the initial hassle you will face when running your business.
#5. A Chance to Brainstorm and Interact with Other Established Business
A typical serviced office location houses several companies. You will have the opportunity to brainstorm and interact with more experienced entrepreneurs. You can even learn from their experience and expand your network to other industries. Learning a few things from experienced business owners is a golden opportunity most people are looking for. You could get it if you rent a coworking space or serviced office in a great location.
#6. Availability of Meeting Spaces and Reception
Most serviced offices have top-notch meeting spaces, exceptional reception areas, and other facilities that will boost your company’s corporate image. However, some of these facilities are shared amongst companies using serviced offices. For instance, the buildings have well-equipped reception areas with professional receptionists employed by the building manager or operator.
Interestingly, meeting rooms can be booked by the hour, and ensure you book it early enough to avoid any bad surprises (meeting rooms are sought after by all the tenants). You do not want to end up having your client meeting in the open space of the serviced office.
What is the Difference Between a Serviced Office and Traditional Working Space?
Starting a business comes with several uncertainties. And these uncertainties and the fear of failures are some of the reasons most people never act on their business ideas. However, with a serviced office arrangement, you can temporarily get a coworking space and test the viability of your business idea. You will be surrounded by people of like minds (entrepreneurs) during this period.
You will learn from some of the best; they will tell you about their experience and how to keep moving even when the going gets tough. Even if you are contemplating on giving up, you tend to get inspiration from other entrepreneurs who are in the same serviced office with you. So, if you still aren’t sure whether to rent a serviced office or not, here are areas of differences between serviced offices and traditional offices.
Expenditure
You need a high initial capital expenditure to set up a traditional working space. You will need to invest in office designs, interior outfits, payment of bills, and reinstatement upon expiry. So, the initial capital expenditure to rent a traditional office is naturally very high.
However, with serviced offices, you won’t spend much. All you need to start using these office spaces is your initial rental fee and deposit (ranging from 1 to 3 months) depending on the rental terms.
Commitment Terms
If you are renting a traditional office, it’s usually for a contractual term. Most times, it’s for 2 to 3 years. And you may end up paying more than the period you need the office. Or get stuck because the office space is too small after 2 years, and it is slowing down your company’s growth.
Serviced offices allow you to use the office on a pay-as-you-use contract. The contractual commitment is usually between 3 to 12 months. Some companies request for a 24 months lease, but only a few operators will provide this option. That is why companies that need short-term commitment always opt for flexible workspace solutions.
Through NextSpace, you can have access to over 100 locations, 2800 office desks, and 350 fully furnished office spaces in Hong Kong.
Types of Flexible Workspace
Flexible workspace is a general term for describing serviced office, coworking space, virtual office, managed space.
Serviced Office
Service office is a flexible workspace solution, mainly an enclosed office room that is fully furnished with desks, chairs, pedestals and equipped with all the facilities you need to run a business. As described earlier, most of the facilities such as meeting rooms and conference rooms are on a pay-to-use basis.
Coworking Space
A coworking space is a flexible workspace arrangement in which you don’t have an enclosed office room. You will be seated in the open space and you have the choice between renting either a Hot Desk or a Dedicated Desk. Coworking space is ideal for people who are on the go and who prefer collaboration over privacy.
Virtual Office
A Virtual Office membership is a prestigious office address at a minimal cost in a coworking space or serviced office. This solution is commonly used by overseas companies that want to give an excellent first impression for their business to their valuable clients. Most centers provide mail handling service and phone call management.
What is the Difference Between Serviced Offices and coworking Spaces ?
People often use the two terms “serviced offices” and coworking space interchangeably. While they are both parts of a flexible workspace arrangement, they are completely different.
A coworking space is a working arrangement in which employees of different organizations share an office space in an open space. This kind of working arrangement encourages interprofessional collaboration.
You should opt for a Serviced Office if you need;
- An enclosed private office to run your business
- Access to viable business locations.
- Lower the cost of renting an office space.
- No building maintenance expenses.
- Built-in meeting rooms and manager rooms.
However, if you rent a serviced office, you may share meeting rooms or communal spaces with other companies within the business. If you are a freelancer or lean start-up with a great collaborative culture, a coworking space will be perfect for you. You can either rent a Hot Desk or a Dedicated Desk in coworking spaces by the hour, daily or monthly.
Even though coworking space provides you with the facilities you need, you may not get administrative support. You only get administrative support privilege in a serviced office. Nevertheless, if you are an entrepreneur or start-up, you should consider renting a coworking Space if you need the following;
- More flexibility
- Temporary working space
- A highly productive working space that encourages a collaborative effort
- Low costs and low commitment.
Now you understand the difference between a Serviced Office and coworking Space.
Serviced Offices in Hong Kong
Hong Kong houses some of the most expensive working spaces in the world. Even though the coworking space market has been there for a while, the growth level in the city is exponential. That makes it the city with the highest flexible workspaces in Asia.
Again, there are over 250 business centers/ serviced offices in Hong Kong. And there are about 90 million square feet of available office spaces in the city.Now you understand why Hong Kong has the highest number of coworking spaces and serviced offices in Asia.
Serviced Office Price in Hong Kong
Currently, there are over 250 serviced offices in Hong Kong. And the price you are paying for a serviced office depends on its grade, facilities, and location.
Generally, here are the price ranges of serviced offices in Hong Kong depending on their grades and facilities;
Grade AAA ===> HK $8000 – 12,000 per person
Grade A ===> HK 6,000 – 7,500 per person
Grade B ===> HK $3,000 – 5,500 per person.
Serviced Office Cost In Hong Kong
The prices of serviced offices in Hong Kong are either per station or per person basis. Generally, the price you are paying for serviced offices or coworking spaces depends on certain factors. And these factors are;
- The reputation of the property, location, and the demand for serviced offices in the area.
- The facilities within the office space.
- Contract duration
- Market turnover of flexible workspace solutions in the city.
- The serviced office accessibility to public transportation
- The position within the property can also affect the price. What does it mean?
- Additional features like meeting rooms, telecoms, and IT.
At all times, the amount you are paying for a serviced office depends on the above factors. And that is why some serviced offices are more expensive than others.
Services and Facilities Available in a Serviced Office
Facilities In a Serviced Office
If you are renting a serviced office in Hong Kong, here are some of the facilities you will enjoy;
- Enclosed office space
- Pantry
- Conference rooms and Meeting rooms
- Breakout rooms
- Telecoms and server rooms
The services you will enjoy are;
- Well-staffed reception desk.
- Security
- Maintenance
- Office cleaning.
- 24/7 access
Depending on the executive office you are using, you may get additional services like administrative support, storage facilities, and IT support.
Who Uses Serviced Offices and Coworking Spaces?
Here are the categories of people who use serviced offices;
- Start-up and entrepreneurs: Serviced offices are perfect for start-ups and entrepreneurs looking for office space without committing to long-term contracts or paying for hidden costs.
- Businesses Expanding to new Market: Businesses trying to expand to new locations will need a serviced office for a short-term rental contract.
- Business experiencing contraction or expansion
- Business navigating through a pandemic and who is in a wait and see position.
- Project-based team.
Are You Looking for a Serviced Office, Coworking Space, or Business Centres in Hong Kong? Search no more.
Contact NEXTSPACE can link you with the perfect serviced office or coworking space that meets your budget and specification.
So, if you need a Serviced Office in any of the following districts in Hong Kong Island – Sheung Wan, Central, Admiralty, Wan Chai, Causeway Bay, we will help you find the perfect office space that matches your expectations and budget.
Learn More About Our Business to see how we can link you with a unique serviced office space.