Instant office can be such a smart move

Dec 12 2007 by Aidan Baker for The Journal

FOR the instant office, serviced accommodation is the best route for market testing or those needing very short space agreements.

Taking Newcastle as an example, there are several providers of serviced accommodation less than two miles from the city centre – All Saints office complex offers a facility, as does Regus on the Newcastle Quayside, the Regent Centre in Gosforth and the latest to open in the North-East, the MWB Business Exchange at Quorum in North Tyneside.

These illustrate the scale of options, which is even greater across the region. What has prompted such a plethora of choice?

Many companies, ranging from start-up businesses through the small and medium-sized operations to large nationals involved in short-term contracts or market testing in the region, require short-term rental for maximum flexibility.

As serviced offices include a central reception and office furniture, an office can be operational almost overnight without the slightly longer option of leasing space.

Even for disaster planning, the serviced office option could, assuming space was available, allow a business continuity in the event of fire, flood or some other disaster. So, immediacy and flexibility are the two drivers. Corporate image can also be an issue for the small start-up – a smart reception area, receptionist on hand and a well equipped office can be impressive. Indeed, it can be a good launch pad for a business which can move on to more space within the complex or to space elsewhere on a longer lease.

A further benefit is that pricing is based on the number of work stations rather than the traditional per-square-foot basis. This is of great assistance to companies where the pace and scale of growth are uncertain.

The service office concept also offers the ability to have a “virtual office” as it provides meeting rooms, email, photocopying and so on, often at an extra charge, but the use of space this way means using more space only on an “as and when” basis rather than leasing space which is seldom used.

The concept of the serviced office may be 30 years old or more, but it is only in recent times that there has been a quantum leap in the supply of space across the region. This mirrors the expansion of the service sector and enables the North to open its doors to a host of operations, both companies already based here and those considering representation in the region, attracted by flexibility and cost.

:: Aidan Baker is an associate director at Atis Real in Newcastle.

PAGE TWO: Big players show confidence by investing in region