Leased or Serviced Office

Should I Choose a Leased or Serviced Office?

Imagine this scenario: you’ve been asked by your boss, or decided yourself, to find a new office. The first search results on Google present a maze of options. You click on a couple of links and soon find yourself bombarded with calls and emails about 'leased' offices, 'flexible' spaces, 'co-working,' 'managed offices,' or 'serviced offices'—but what’s the difference, and which one is right for you?

The simplest way to understand the difference is to compare an office to a holiday: leasing an office is like booking a self-catering holiday, while a serviced office is akin to an all-inclusive package. Which is the best fit for your business? Here are four key considerations to help you decide.

1. Is the company looking to grow in the short to medium term?

One of the biggest benefits of serviced or co-working office space is the flexibility of the contract. During your initial term, you can expand, not only within the building but also across the provider’s portfolio. This allows you to commit only to the amount of space you need right now. With a traditional lease, you're often locked into a minimum of three years without flexibility for growth, so you would need to secure—and pay for—extra space upfront to allow for future headcount. With flexible office space, you can add space anytime without penalties.

2. How long are you prepared to commit?

Flexible office space typically refers to two main factors: the option to grow within the contract and the length of time you commit. Traditional office leases usually require a five-year commitment with a break at the end of year three. With flexible office space, you can sign on for as little as one month, extending up to three years, with notice periods often as short as three months. This setup is ideal for startups needing flexibility or for companies trialing hybrid work.

3. How soon do you need to move in?

Finding a leased office is often a lengthy process, involving the initial search, engaging with an agent, viewing properties, negotiating terms, lawyer reviews, contract signing, deposit transfer, space fit-out, IT installation, furniture orders, and finally occupying the space. We recommend starting the search at least six months in advance.

In contrast, moving into a serviced office is much simpler. No fit-out, IT installation, or furniture orders are required—it’s all set up for you. While you’ll still need to view properties and negotiate, serviced office availability is posted up to three months in advance, allowing you to move in as soon as you sign the contract and pay the deposit. Working with a specialist broker or agent (like Love Mondays Office Space) can save you time by narrowing down the options and negotiating on your behalf.

4. Upfront cost

A serviced office generally has much lower upfront costs. Aside from any modifications you might make, you typically only need to provide a three-month deposit. Traditional leased office space, on the other hand, involves solicitor and agent fees, fit-out costs, and, depending on your covenant strength, a six- to twelve-month deposit.

BONUS: What additional facilities would you like for your team?

Meeting rooms? Phone booths? Cafes? Roof terraces? Gyms? Snooker/pool tables? Social events? If you want to offer amenities that support productivity and well-being, a serviced office may be the answer. These offices come with desks, chairs, and storage, while the building often provides communal facilities. Many established providers also organise networking events free of charge for you and your team. In a leased office, none of these amenities are included as standard, so you’ll need to factor these costs into your budget.

There are many factors to weigh, but making the right choice will help you and your team #LoveMondaysAgain.

If you have questions or want to discuss any of this further, please reach out to us at info@LoveMondaysOfficeSpace.com. We’re here to help you and your team #LoveMondaysAgain.

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