Serviced Offices Vs Traditional Offices

One of the major steps in setting up a business in UAE is to acquire the right office space to take care of business operations. Different business types require different workplace solutions based on their unique requirements. The decision between going for a serviced office space or a conventional office setup is made a lot easier once the reason for having an office space are clear. The 2 primary qualifiers that come into play while choosing an office space are Why is the office space required? – The business could be a startup looking to for an optimum deal commercial office space rentals based on their capital base, a young steadily growing firm looking to relocate as they scale up the business or an established firm looking to expand and invest in an office space. When is the office space required? – Depending on business needs, an office space maybe required as soon as it’s available or within a few months with all ready amenities. In this scenario, a serviced office is a feasible option as compared to a conventional office setup.

What Sets Them Apart?

Businesses choose traditional offices either to establish permanent headquarters for their operations, or to expand their operations and accommodate new departments and equipment. Traditional offices are more popular among established companies that have enough capital to spare for infrastructure, fit-outs, peripherals and redesigning requirements of the office space. This also demands time to fully to add and install facilities according to the company’s operational preferences.

Serviced offices offer versatile solutions for small to mid-range businesses. A survey revealed that Businesses in Dubai find it easier to get work done in the right office environment and does not require extensive setup cost. Serviced offices in Dubai are present in all major business districts and are equipped to meet requirements from a startup business to a large scale corporate entity.

Here is a head to toe comparison between Traditional offices and Serviced offices in UAE

Infrastructure and Leasing

Traditional offices are limited to specific zones and require a sizeable upfront payment. The leasing agreements are rigid and minimum security deposits can go as far as 5 to 10 % of the agreement. The lock-in period is also uncompromising with a fixed rent structure. Other internal amenities are mostly absent and require high setup cost for constructing meeting/training rooms within the workspace.

Serviced offices on the other hand offer ready-to-go workspace and flexible leasing options. Serviced offices in Dubai come with modern day facilities and furnished interiors included with the leasing agreement. Business centers in UAE offer serviced offices in comprehensive packages with competitive prices ranging from day-to-day, weekly, monthly and yearly contracts.

Business Risk

Establishing a traditional office requires high capital, which purports a permanent presence to a company for years to come. This allows the business to save on costs for additional fit outs, renovations and construction which might follow as the organization grows over time. However, it also inhibits the company from mobilizing if split testing gives a better market to capitalize and move operations to a convenient location.

Serviced offices are pay-as-you-use which allows companies to test multiple markets without any significant long term investment. This way firms can expand and mobilize their operations with better competition, more suitable economic climate, favorable government regulations and minimal risk while targeting new markets.


Traditional offices are expensive and bound with unfavorable leasing terms. On an average it takes at least 2-4 months to get a traditional office up and running, given that the investing company has the required capital base. This becomes particularly difficult for those companies that earn seasonal returns, have unstable financial status or lack of manpower. Such businesses need swift and low cost solutions.

One of the major advantages of serviced offices is their fast-track setup. Serviced offices have fully operational status from day 1 and are not bound by any additional costs with all-inclusive monthly invoices. Businesses can get a good leasing contract to move in within a week without tangling into complicated procedures, government approvals or fit-out deferrals. Some leasing agreements also include exit strategies in case the company experiences losses and needs to move out while still under lease agreement.


Since traditional offices are mostly built from scratch, these places take time to add facilities and other fit-outs for a functional work environment. Serviced offices in UAE include all amenities such as furnishings, office equipment, internet access, telephone services and postal address etc. Additional services can include dedicated receptionist, administrative support, security and maintenance, daily cleaning, and personalized office equipment offered in basic to professional tier packages.

How can Ascendris help?

Fledgling business that are in the initial stages of their business life cycle have to factor different variables such as fund availability and expected growth. Serviced offices are particularly beneficial for such companies that are looking for an office space in Dubai that offer a low-cost, high-quality solution with short term lease contracts. Located in Business Bay, a major business district in UAE, Ascendris offers the perfect office space solutions and provides the finest meeting rooms and furnished offices in the heart of Dubai.


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