Choosing Serviced Offices over Traditional Offices – A Sound Option?

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Choosing Serviced Offices over Traditional Offices – A Sound Option?


All global or major domestic businesses require a geographic location – such as a corporate office, from where they can manage day-to-day operations. A centralized office aids the management in cutting overhead costs, improving the overall efficiency of business operations and building stronger inter-organizational communication channels. It can also lead to increased productivity and brand development due to all essential staff members being in one convenient location. However, the skyrocketing prices of office space in locations known for being trade hubs can significantly add to the overhead costs. Dubai is a prime example of such business hubs, where despite the slowdown in real estate market over the past two years, office space in Dubai still classifies among the top 20 most expensive commercial rentals in the world.

Traditional Office Spaces: The Cons

Traditional office spaces are not always the what meets the eye. During the infancy of the company, several complications are left unattended that grow up to be devastating for the company. Here is why traditional are a caution for businesses.

Flexible Lease Agreement and Surging Real Estate Costs

Traditional office spaces do not offer much compromise in terms of the physical space and the terms of the lease agreement. You won’t be able to afford the flexibility of paying on a month-to-month basis, or the choice of opting-out of the lease in case your business runs into a loss.


In addition, moving into a new traditional office space also means that the furnishings will be entirely up to you. You’ll have to budget in the fit-outs yourself. The process can be very time-consuming as well as stressful. Moreover, even the furnishing and interior decoration of smaller office spaces can add up to the cost.

Paying for Unnecessary Space

Considering that over 40% of office space such as board rooms, corridors as well as pantries are not used that often, and occupy valuable square meters of space which costs money, It won’t be a better option if you had to pay less or nothing at all for this space.


On top of rent, traditional office space can also carry other hidden costs such as stamp duties, business taxes, insurance, maintenance, water, power, security and broadband internet charges, etc. These can add up to the overall monthly costs
While traditional offices may be suitable for larger more stable corporations, it is evident that this option does not offer much flexibility in this modern age of trade and commerce.

Serviced Offices: The Pros

Bearing in mind all these drawbacks, serviced office in business bay such as in Dubai may be a more suitable option for businesses that want to overcome unnecessary logistical difficulties and reduce needless expenses.

Only Paying for Necessary Space

In serviced offices in Dubai, you pay for the essential areas that you use – such as office space – while the cost of shared facilities such as boardrooms and kitchen are split over multiple companies.

Fully Furnished Facilities

Furnished offices in Dubai come with the feature of being fully equipped and serviced with all necessary fit-outs so that businesses can begin operational tasks from the instant they move-in.

No Hidden Charges

The cost of most amenities such as cleaning services, water, power, and Wi-Fi, etc. are already included in the rental agreement. These costs are also split over businesses sharing the facilities.


Most operators of serviced offices offer the option of short-term leases to their tenants, or by renting out office space on a rolling basis. Hence, tenants can rent office space according to the changing nature of their business – and paying for the specific facilities they have used at the end of the month.

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