Serviced Office vs Coworking Space: A Guide

Serviced Office vs Coworking Space: Choosing the Right Workspace Model

A government report from 2024 stated that over a quarter of working people in the UK were doing so in a hybrid manner. Since the pandemic, remote and hybrid working has grown in acceptance and regularity, meaning that the choice of workspace has become even more critical for businesses.

Because of the changing profile of what workers look like, what they demand and what they will expect, businesses starting up and growing in size are torn between coworking and serviced offices.

It’s a big decision to make, which is why it is important to have as much information as possible. You should know about your options, what the benefits and drawbacks of them are, and which one is right for you.

This guide will help you with all that, so that you pick the workspace that suits your business.

What Is a Serviced Office?

A serviced office is a dedicated private office space that is located in a larger building that has other types of workspaces. These serviced offices can come unfurnished or furnished and included in the price, you will be provided with utilities, cleaning and maintenance and internet access.

Often, these buildings have a manned reception area, meeting rooms you can access and shared amenities that all businesses in the building can use.

We at Mersey Bank offer a range of fully serviced office options, with flexible leases and professional support services to ensure you reap the benefits and can focus on growing your business. 

What Is a Coworking Space?

A coworking space is where various individuals and different organisations share an office space. It is a flexible workspace solution, where single individuals can book a single desk for a day, sharing with a bunch of people working for the same organisation who regularly work in that space.

It follows a hot-desk model, meaning no one has their “own” desk, with them being booked out and used on an ad hoc basis.

There is a community atmosphere to these spaces, encouraging collaboration and contact with different people. It is also a cheap workspace option, especially if you are a small business in the early stages of development.

Like serviced offices, there are shared amenities in the building, but there is little privacy in the working space.

Pros and Cons: Serviced Office

There are both advantages and drawbacks when it comes to a serviced office.

Pros of a serviced office include:

• Privacy
• Dedicated space
• Branding control
• Quieter environment
• More professional appearance/image

Cons of a service office include:

• Higher cost than a coworking space
• More commitment
• Less flexibility if you wish to quickly scale up or down
• Less control over IT

Pros and Cons: Coworking Space

Coworking spaces also have a range of things going for them, and things that may work against them.

Pros of a coworking space include:

• Lower cost than a serviced office
• More flexibility, can book desks on an as-needed basis
• Networking opportunities 
• Sense of community with the other people you are sharing with

Cons of a coworking space include:

• Distractions from people working (or not) around you
• Less privacy (no personal office space)
• Less control over the environment (your space is only the desk you are sitting at)
• Potential security concerns

Which Model Suits Which Business Stage or Style

The working space model you decide on can be dictated by where you are as a business.

Freelancer or Startup

If you are a freelancer or a small startup, operating solo or just with a couple of other people, then utilising a coworking space may be beneficial. The costs are generally lower, and it allows you to operate in a more professional space than your home and offers the chance to collaborate and network with other businesses.

Growing Business

A slightly larger business, or one that is more client-facing, may benefit more from a serviced office. They offer more privacy, look more professional and provide a larger space to work and meet clients in.

Brand and Privacy Focused Business

If you want your branding to be consistent, then a serviced office is the better choice. You gain more control over your environment, allowing you to create a consistent brand across online and offline spaces. Also, if you are prioritising confidentiality, perhaps often handling sensitive data, serviced offices provide a more robust security and private office space solution.

Hybrid Options or Transitions

The beauty of these modern workspace solutions is that you don’t have to be tied down.

You could start off in a coworking space and, if you grow as a business, transition into a fully serviced office. There is also the option to take an even more flexible option of utilising virtual office services, meaning you work off-site whilst having access to a professional address. You then make use of a coworking space for occasional in-person appearances as and when you need to.

At Mersey Bank, we provide a flexible model that can work for you. We offer both virtual and serviced office options in one centre, giving you the chance to combine them for a flexible workspace solution.

Cost Considerations and Value

Other important considerations are cost and value for money.

Costs	Coworking Space	Serviced Office
Cost per desk	A coworking desk has a lower cost per desk because you are sharing amenities and utilities.	The cost per desk is higher in serviced offices because you are gaining access to a private office space.
Overheads	Coworking spaces have lower overheads because of shared facilities and amenities, on a flexible month-to-month membership.	Serviced offices come in a bundled service package with a flat, predictable fee that is usually higher than a coworking membership.
Utilities	The utilities cost is usually factored into the monthly fee you pay and covers the basics.	Utilities, too, are bundled into the monthly fee, but elements such as the IT infrastructure may be more robust.
Maintenance	Again, maintenance is included in the monthly fee, and you share the cost with everyone else in the building.	Maintenance will be included in the all-inclusive pricing that will be higher than that of a coworking space.

Coworking Hidden Costs

Across the board, coworking is cheaper. However, there can sometimes be hidden costs. When it comes to coworking spaces, you may come across booking fees and added costs to access perks such as unlimited coffee and tea, better internet and printer use.

The Value of Serviced Offices

The fees for serviced offices may be higher initially, but you get access to more services. Admin support, access to meeting rooms and free access to a fully equipped kitchen are elements factored into the price.

If you have any more questions, check out our FAQ page to find out more.

Choose Based on Your Business Needs and Goals

Both types of spaces offer flexibility and a place for your business to begin. Whilst coworking may be cheaper, serviced offices offer more services and a more personal base to place your company.

Before deciding on a space, you need to know what you want from your office space and what your goals are.

Is your business ready for a professional office? Contact Mersey Bank today to learn more about our serviced offices and find the workspace that fits you.