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A serviced office space is an office that is provided for and is equipped by a facility management company. The services provided may vary amongst different providers, but generally include specialized office space (conference rooms, working space, etc.), utilities, IT infrastructure and various office equipment.

In general, serviced offices aim to provide all the necessary business facilities in a bundle and in a ready-to-use state, removing the need for preparations and setup procedures. Depending on the provider, a serviced office may be rented out on different conditions for payment and the use of equipment:

• Facilities and equipment may be rented out together for a fixed payment that covers the majority of equipment and services or each article may be rented separately, making the price policy more flexible
• All the equipment may be rented out to a single business for exclusive use by the employees of the business or it may be used within a common space, shared by other companies renting out serviced office space in the same business center

Serviced office advantages

Serviced office advantages are numerous and can be roughly divided into the following categories:

• Convenience;
• Business presence
• Economic substance

Convenience
One of the most direct advantages of a serviced office space is its convenience. For a fixed payment a company is able to acquire a ready-to-use working space and often the equipment, which requires no special maintenance. This is an effective time-management measure, as no time for setting the office up is wasted. Besides that, it may significantly reduce maintenance costs for the business, as most of the time the price of renting a serviced office is lower than the price of buying all the equipment and setting one from scratch. It is also beneficial for companies with smaller budgets, which otherwise would not be able to afford both the space and the equipment.

Flexible renting schemes allow saving even more finances, as equipment may be rented irregularly or together with other companies, which in the long run makes its price-per-use lower, reducing maintenance costs. This also makes it feasible not worrying about possible emergencies, when a certain facility is urgently needed, but would not be immediately available without renting a serviced office.

To summarize, in general the convenience of a serviced office space comes from the fact that its maintenance is performed by a dedicated facility management company, reducing the costs and removing the need to follow the maintenance process.

Business presence
Business presence is an important part of corporate branding, and a serviced office space can enhance its capabilities. Often such offices are located in prestigious business centers, which gives additional credibility to companies that are quartered there. Besides that, a serviced office is a simple and fast way to establish business presence in a new location. It allows for a more rapid market entry, which may become crucial if competition is intense. Although indirectly, this benefit may prove especially useful at the initial stage of business development.

Economic substance
Above all, economic substance is often the most noticeable benefit of a serviced office space. Many jurisdictions (and almost all the major ones) require economic substance for tax benefit purposes, ensuring that no company registers in particular jurisdictions just to receive tax benefits, without any intent to do actual business and contribute to the economy. As this is a legal requirement, companies are obliged to comply it in order not to be over-taxed. Serviced offices are a perfect way to provide the economic substance, as many of them are located in prestigious business centers, neighboring many other businesses. This gives any company situated there enough credibility to apply for tax benefits and other incentives.