Key Difference between a serviced office and a co-working space

There are times when you want to expand your business and move out from your “garage” to a professional place for wider recognition and for ease of interactions with your customers or clients. You are then confronted with the question that whether you should move a serviced office or a co-working space. Both have their own advantages and disadvantages and a decision in this regard must be taken after careful assessment of the two options and your own requirements and aspirations. While a serviced office and a coworking space have some similarities, they often have their own traits and features. We look at both the similarities as well as the dissimilarities between the two formats of office spaces:


1 Lease Tenure: Both the serviced offices and co- working spaces have lower tenures that traditional leasing of commercial places. This is an important feature of the two formats and that is why these are preferred over traditional leases. The short tenure lets small businessmen see and asses the business situation and future requirements without having to commit to the space for long. In certain businesses, especially in startups, there can be exponential growth in business, requiring hectic hiring and thus need for a large setup may arise quickly. Hence, it is best for small businesses and startups to keep the commitment for lease tenure as low as possible.

Also read our article on Vastu for office

2 Shared Areas Like Conference Room and Pantry: There are many areas of serviced offices and co-working spaces that are common for the tenants or the businessmen that include conference room, pantry and sometimes even reception. Thus the rentals in both the formats are lower since the manpower and real estate devoted for such services are shared. While it may suit some businesses to have common reception and other common areas, it may not be ideal for others. You have to be very clear about your needs from the commercial space you are renting so as to arrive at the correct decision.

3 Fully Furnished: Both the formats will offer completely furnished offices and one just needs to go and start the business. There will be printers, internet connection and running cafetaria, apart from furniture, electricity and water supply. Thus both these formats allow you to hit the ground running without having to worry about elementary arrangements like utilities connection and their proper functioning. This can be a great boon for small enterprises and startups. If you are planning to relocate your business to another city or another part of the country in near future for being close to your client or customer base then these formats can suit you best.

Key Differences

1 Community Manager and Community Events: This is one of the main differences between a serviced office set up and a coworking space. There are many community events organized from time to time in a co-working space, especially those that will benefit the tenants, that is, freelancers, startups and small businesses that have taken up a few desks or even a cabin. These events can be really helpful for a small businessman or a freelancer and they look forward to such events in the place where they have occupied space. These events can sometimes result in alliances and collaborations as well. In a serviced office setup, there is no such event and tenants cannot look forward to collaborations through events.

2 Privacy: The privacy aspect in a co-working set up is compromised to an extent and is not suitable is the customer data or business plan is strictly confidential in nature. There is usually moving around of the tenant within the co-working from day to day. While it has its advantages like mingling and sharing ideas with a new neighbor everyday, the confidentiality is often sacrificed. On the other hand, serviced offices are usually offer more privacy as there are closed private office spaces in this kind of a set up.

3 Cheerfulness and Vivid Atmosphere: Coworking spaces are usually occupied with young people who tend to be a little noisy with very high energy levels. Sometimes such an atmosphere can be a plus point since the energy can travel from one desk to another and lead to higher productivity across the co-working office. The atmosphere is a serviced office, such as in a Business Centre, is usually more serious and there are closed offices and cabins with little energy to get from other occupants.

4 Provisions for Extra Space Like A Nap Room: Coworking spaces can offer small rooms for a quick nap or other such activity. Coworking spaces are usually occupied by individual freelancers and small businessmen and usually work many hours of the day and such a provision can be really helpful to them. Serviced offices are occupied by larger companies and they do not offer such amenities.

Was this article useful?
  • 😃 (2)
  • 😐 (0)
  • 😔 (0)