In the past, businesses were stuck with thinking how will they be able to get the money in order to pay their office lease? Yes, it’s a lease. Businesses are required to pay a lease and is bound to that contract until the end of it. But the times have changed. In answer to these woes, “serviced offices” came into the picture. In fact, this type is so popular that there are already a number of serviced office providers in the Philippines.
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What are serviced offices?
This type of office is a workspace solution that is ready for action. Businesses will not be burdened any more with starting their office from scratch since serviced offices are already equipped with the necessary equipment to start operations once move in is finished, or the next day right away if available. In short, employees are only needed to start operations.
The concept of serviced offices offers businesses a flexible timetable, letting them move in and out anytime they please since leasing can be as short as one month. It may cost more than traditional offices in the first few months but cost reductions will eventually surface in the long run.
How did serviced offices come to be what it is now?
During the 1980s, there was a decrease in the trend of commercial property leases. Then, looking at the financial crisis in 2008 and 2010, that was another time when the average length of commercial leases went down. Despite the downs, the sector was able to rise slowly through confidence in the market. The real change happened when landlords are now catering to flexible terms, and 1 of course — during the rise of the creative and tech businesses.
The creative and tech businesses were the catalysts of change. Now even traditional offices are slowly opening up to the option of allowing employees to work in a different area. So far, Generation Y is definitely pushing the boundaries and leading the way all thanks to their knowledge of technology.
Definitely, serviced offices are considered an investing — a long-term one that is. More and more businesses are looking into flexible terms when it comes to office space, especially this year. In looking at the Philippines, there may be disruptions, but the country is slowly bouncing back into the game, offering more office space for the demand.