Stock Analysis

How Business Centres are Embracing More than just ‘An Office Space’ Concept

Written by: Krishna Saraogi  

Figure 1 – Economic Times

Business Centers, also popularly known as Serviced Offices, is an office building that is fully furnished and equipped and is managed by a management company (also known as operator or office provider). The operators rent out the offices or entire floors to their clients for some payment that is to be made by the latter to the former.

The operators give their clients ready-to-use offices with full private access for their operations on a flexible term basis. Serviced offices are changing the entire landscape of the offices in the corporate world. The serviced offices eliminate the complications of long-term contractual obligations and allow the instant use of workspace. 

The demand for serviced offices has increased over time. This is because it neither involves owning the space nor renting it. Owning or renting the offices comes with the responsibilities of huge maintenance and services overhead cost and capital investment. The company could use this money incurred as investment or overhead costs for other purposes, which will help in its growth.

Here are some reasons why the serviced offices are a better choice over owning or renting offices:

  • They can customize the infrastructure of the serviced offices and the infrastructure as per the requirements of the client.
  • It has flexible terms of usage and provides customized solutions to the problems, which is very much needed in such a dynamic and volatile business environment.
  • The serviced offices enable the clients to get instant access to the office, saving time and cost. This also ensures the smooth and efficient operations of the business.
  • The serviced offices have spaces for various sizes of staff groups.
  • It comes with all the proximate facilities needed in a workspace, such as -desks, recreational areas, lunchrooms, maintenance services.
  • The clients can even add additional services that they require by paying extra money.
  • These offices are usually located in reputed and easy-to-locate locations.

Serviced offices help the companies focus on their plans and achieve their goals more effectively and efficiently because maintaining offices or providing services is eliminated. It enables the employees to focus more on their list of activities.

Figure 2 – Executivecenter.com

Business centres have a setup for all kinds of companies or businesses, be it – Global Companies, freelancing, SMEs, or any other type of business. They provide ready and easy access solutions to every kind of company or business.

The pandemic has led to companies changing their work style because of the many challenges they face. It has introduced new working style concepts, such as – Work from home, remote working, and on-purpose meetings. These working styles require different locations, and serviced offices provide flexibility and solutions for every working-class type.

Such flexible workspaces are much needed by companies worldwide because it enables the companies to relocate easily without the hassle of long contractual paper-works or payment of outstanding bills till the re-locating is done and other such nuisances.

Serviced offices are the new modern style offices with much more facilities and flexibilities in such a dynamic and uncertain economy and business environment. 

Sources: CNBC, Economic Times, Livemint