Optimising Office Space: Office Fit-Outs & Co-working Spaces Compared
Posted on 3rd September 2024 at 14:37
For any growing business, managing fixed costs is important. No less so, when it comes to deciding the best strategy for office space and how you decide to accommodate your growing team. The pandemic changed a lot. Hybrid and flexible working became the norm and led to many businesses questioning the value of long-term, costly office leases. Meanwhile, funkily designed co-working spaces have increased in popularity due to their flexible contracts and costs. But how do the two options really add up for your business?
In this blog, we take a look at the pros and cons of maximising your space with an office re-fit versus shared office options.
What do you need from your office space?
Every business operates differently and your office environment is a significant factor in team efficiency. Co-working offers an excellent solution for solopreneurs and start-up businesses, helping them keep costs low and develop business relationships.
For larger businesses, co-working is still an option but the bigger you get, the more difficult it is to manage a growing team in a generic space designed for every business and not your own. By comparison, leased offices offer the opportunity to customise the space to how you work and plan to grow.
With all your staff in one place, there are benefits for productivity and company culture as well as helping you to manage on-going costs by maximising your space for office, storage, production and fulfilment requirements. A great design can give you flexibility and the choice to adapt spaces over time to accommodate changes in the business and a larger team.
How much does it cost to fit out office space?
The time required and complexity of your office refurb will depend on the size of your space and whether you’re starting from an empty shell or a space that already has electrics, networking, ceilings and flooring installed.
Comparing the ROI of an office space re-fit versus a co-working space, is not as simple as a comparison of up-front costs. While the total bill for a re-fit may initially seem bigger, typically when you finance your project, you can spread the cost over 5 years. And remember, if you’re looking to save money by moving from sole-use offices to co-working spaces, you will be hit with a dilapidations charge which can be significant. For example: a 20 person office space with meeting rooms could be £32,000.
If you decide that a re-fit is best, there are additional ways you can reduce the cost of your project, over-and-above financing.
Business energy costs: your refit can include energy-efficient technology to help you reduce the cost of energy for the long-term.
Choose a company that provides an end-to-end service: companies like Phoenix Systems do everything from design to installation, saving you the cost of interior designers and architects.
Clever, flexible design: a great design is all about maximising your ROI. You can design storage and fulfilment areas, maximising all your square footage and tricky unused 'airspace' such as pitch roofs. A clever use of space will enable you to stay in your space for longer, further increasing your ROI.
Leased Office Fit-Outs vs Co-working Spaces Compared
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|
Office Fit-Out |
Co-working space |
|
Cost |
Based on size of the space and the services provided. Investment for the future. You will own the furniture. |
Per desk for an agreed period. |
|
Commitment |
Average 5-10 year lease term giving you security for that period. |
Flexible costs and contracts with shorter terms (often as little as 6 months) |
|
How you work |
A customised working space - maximise your square footage to accommodate your needs now and for the future. Design meeting rooms, hot desking, flexible spaces, storage and even production and manufacturing. |
Work in a generic pre-designed space often in co-working areas if you haven't leased an office area. Shared access to facilities including meeting rooms. No storage. No opportunity to tailor the environment to your business. Not suitable for any kind of production, manufacturing or fulfilment. |
|
Growth |
Plan for growth in your design. |
Depends on the number of desks available. |
|
Productivity |
Brand - your office home reflects your brand and your mission for your whole team to be a part of. |
The space reflects the brand of the co-working space, not who you are as a business. Your brand and mission is not reinforced. |
|
Meeting rooms & Break out spaces |
Multi-functional spaces that are designed around your culture and the way you work. |
Shared. |
|
Privacy & Security |
Full privacy for your business. Control over cyber security and network provision. No other businesses have access. |
Working around other businesses so privacy is compromised. Reliant on third party for cyber security and network provision. |
|
Storage Production Fulfilment |
Can be designed into your space. |
None. |
The home you choose for your business will not only reflect your brand but it will be an integral piece of your productivity jigsaw and company culture for the long-term.
Phoenix Systems deliver refits for offices, business units and warehouses all over the South East. To learn more about how you can maximise your space and your productivity, give us a call on 01903 765366.
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