Serviced and Virtual Offices – a New Mantra for the New Age

The current slowdown in the economy has thrown open the gates for a new age formula in real estate service – the Serviced Office. Serviced Offices are spaces equipped with corporate infrastructure and support services and given out to companies on a pay-per-use basis. The concept of serviced offices is gaining popularity with the corporate seeking a market presence and for those wanting to expand their business in India yet hesitant about go into committed long-term lease agreements or invest into buying office space immediately. The Serviced Office offers a perfect opportunity to test waters without needing to jump in fully!

Global experience shows usage of this service by multinationals, big corporates and startup companies looking to set up shop quickly and economically, without capital infusion towards acquiring and leasing of real estate premises. The demand from corporates for serviced ready-to-use offices, instead of conventional offices on long-term lease basis, is gaining momentum and is rapidly growing at the rate of 15% to 20% feel industry experts. In fact, internationally, the market for serviced offices is quite well developed and in major cities across the world, such as New York, Serviced Offices account for 10% of the total office space available.
Although in India it is still in its nascent stage and the serviced office inventory would amount to only about 0.1%, rapid economic growth in the country has opened up opportunities for this ‘on-demand’ real estate product. Adding to this, the recent downturn in the global economy has made companies extremely cost conscious and look at innovative solutions to meet their real estate requirements. Companies have begun to shed traditional property models and gain the flexibility and cost-savings needed to compete in today’s fast-moving marketplace. Whether it is a large corporation trying to reduce costs and better align the real estate and business strategies, or an emerging business needing to conserve cash and reduce risk, now there are more options than a conventional office space or fixed lease option
The Serviced Office space is a ready-to-move-in office space where you just move -in with your laptop. It does not matter if the company stays for three years or just three hours – company officials just need to walk in, sign an agreement and do their business. Set up to substitute investing a lot of money in establishing an office or business identity, this solution provides office space, facilities, and equipment to control overhead costs and expend money only for services used by them.
Companies can hire space for a day to carry out brainstorming sessions, conduct interviews etc or work out of these offices for a month or even up to a year. Usage of this kind of office leads to significant savings in terms of overheads and capital expenditure. According to industry experts, companies opting for serviced office space can save up to 30 per cent of their real estate costs in the first three years of operation. Further, depending on the location and type of workstation, the cost per serviced office space could amount to anything between Rs 12,500 and Rs 80,000 and the market is rapidly beginning to double because it is starting from a low base of current serviced office availability.

Also, within the last ten years, rapid growth in technology has provided serviced offices with remarkable opportunities in developing new products and services leading to the option of the Virtual Office. New technology, emerging competition and mergers have changed the way people work around the world. These forces have given rise to a highly mobile workforce that spends less time in the office and more time working from, virtually anywhere they can find an internet connection. This is where Virtual Offices come into play.
To support those businesses that do not have a requirement for physical office space, there are Virtual Office packages. Virtual Office clients can take advantage of the prestigious addresses utilizing it on business cards, letterheads and other merchandise, they will be assisted by a dedicated receptionist who’ll answer calls in their company name or gain international access to boardrooms and meeting rooms when they need. Virtual Offices allow the delivery of services and products online and in real time. Clients can access their virtual office wherever the internet is available to store data online, check emails, make boardroom bookings, request translations, utilize a remote data storage system, print, book a courier and much more. Everything one would expect from a professional office environment – without actually having an office!

Infact, global leaders in the ‘Virtual Offices’ and ‘Serviced Offices’ spaces, like Servcorp have developed total business solutions which offer maximum flexibility to the occupant. Clients can literally walk in with their laptops, select from a bouquet of services – secretarial, administrative, communication infrastructure, meeting and conferencing facilities, even pantry services - according to their needs and requirements and get on with their business, they no longer get caught up in the day-to-day hassles of maintaining an office environment. The best part is, these international quality services are ‘pay per use’, and so have no standing costs.

Thus, at a time when the real estate prices are booming, Serviced and Virtual offices offer the most cost effective and convenient solutions for all kinds of business requirements to meet the current infrastructure standards.