Serviced Offices vs. Traditional Lease – Are They Really More Expensive?

Serviced Offices vs. Traditional Lease – Are They Really More Expensive?

There are many myths surrounding serviced offices – one of the most common being that they are more expensive than traditional leases. However, more and more companies, regardless of size, are beginning to recognize the real benefits of the flex model – not only in terms of flexibility but also cost. Let’s take a closer look at how these two options truly compare – including examples from The Shire – Beyond Coworking.

Price Is More Than Just Rent

In the traditional lease model, the price per square meter is only the beginning of the costs. Tenants also need to cover:

• Operating expenses – building services, security, cleaning of common areas,
• Utilities – electricity, heating, air conditioning, water,
• Furnishings – desks, chairs, cabinets, kitchen and meeting room equipment,
• Supplies – coffee, tea, cleaning products, office materials,
• Administrative support – reception, technical support, space management.

On top of that, companies must invest time and resources in setting up the office – from negotiating with vendors to ongoing maintenance.

Serviced Offices – One All-Inclusive Payment

With serviced offices, such as those offered by The Shire, tenants pay a single monthly invoice that includes nearly all of the above elements. The space is:

• Fully furnished and ready for work,
• Equipped with high-speed internet, printers, meeting rooms, and kitchens stocked with coffee and tea,
• Covered by daily cleaning services and front desk support.

Importantly, companies don’t need to invest in a fit-out or bear the risk of purchasing equipment. If needed, they can quickly scale the space up or down without long-term commitments.

Flexibility That Pays Off

For many companies, the greatest value of serviced offices lies in their flexibility. Agreements are shorter, and the size of the space can be adjusted to the current needs of the team. In practice, this means:

• No CAPEX – no upfront investment,
• Predictable budgets – no surprises on invoices,
• Time savings – no supplier management, equipment handling, or office maintenance.

As a flex space operator, The Shire understands these needs well – offering both private offices and shared spaces in multiple cities, with the ability to tailor terms to a tenant’s current business situation.

When Does Traditional Leasing Make Sense?

A traditional lease may be a better option for large, stable organizations with long-term strategies and in-house administrative teams capable of managing the space independently. In such cases, with a sufficiently large area and a long enough lease term, it may be possible to achieve a lower cost per square meter – but only if all additional aspects are managed efficiently.

Focus on TCO, Not Just the Rent Rate

When comparing office options, it’s important to consider TCO – Total Cost of Occupancy. TCO reveals the real cost of using the space, not just the base rent. Often, a serviced office – despite seeming more expensive at first glance – turns out to be more cost-effective once all expenses are accounted for.

Conclusion

Today, serviced offices offer not only convenience and flexibility, but increasingly – a rational cost choice. Especially for companies that want to operate quickly, efficiently, and without unnecessary commitments. The Shire – Beyond Coworking meets these needs by providing premium flexible offices with full service and a thoughtful cost structure, allowing companies to focus on what truly matters – growth.