Have you heard about the rise of coworking spaces in recent times? Projections have suggested that there will be about 41,975 coworking spaces in the world by the end of this year. However, the lack of security and privacy in these establishments can make you weary.

That’s why the industry has introduced a new concept—serviced offices. Reports suggest the global serviced office market will reach USD 36,347.2 million by 2026. It’ll grow at a 14.8% CAGR between 2021 and 2026.

Even with such projections, various misconceptions plague this concept. In this blog post, we’ll discuss everything related to these myths and bust them once and for all.

What Do Serviced Offices Entail?

Serviced offices are fully furnished or equipped with workspaces ready for immediate use. Hence, businesses can operate without logistical challenges in traditional office spaces.

According to Victor Harris Commercial Ltd., entrepreneurs only have to pay for the working space of serviced offices, as they come equipped with all amenities and facilities. For example, the building will have meeting rooms, a breakout area, furniture, etc. Other essentials include internet connectivity, utilities, and administrative support.

These are usually attractive to startups, small businesses, and freelancers seeking a professional environment without a long-term commitment.

The State of the Serviced Office Space Industry in the UK and America

The serviced office space industry is definitely thriving globally. This is especially seen in the London and New York markets.


This city is the most expensive place to rent offices. In the West End, offices were priced at 90 pounds to 135 pounds per square foot last year.

That’s why the craze for serviced offices in London is on the rise. The price per square foot can range from 50 pounds to 140 pounds, depending on the location. This city also leads the world in this market by having over 18 million square feet of serviced and coworking office spaces.

New York

Industrial hubs like New York and Los Angeles have a growing demand for office spaces. In 2023, the big cities in America had a quoted square footage rent price of USD 80. However, serviced offices have a per-square-foot cost of only USD 8 to USD 23.

That’s why most American entrepreneurs and startup founders prefer these locations over renting office buildings.

4 Myths About Serviced Offices: Busted!

Even with such a rise in the market, many entrepreneurs believe certain lies about the serviced office industry. Take a look at the main misconceptions you might have about such establishments:

#1. They Can Get Expensive

Serviced offices can appear expensive for many because of the premium amenities offered. You might think the rental cost will be off the charts because of the unique services provided. People associate these facilities with comprehensive support services and high-end locations, leading to the ‘high-cost’ misconception.

In reality, serviced offices are cost-effective, ergonomic, and cheap compared to traditional office buildings. There won’t be any fit-out costs for these spaces. All you have to pay for is the lease, which you can customize based on your business needs and rent duration.

As a result, you can eliminate upfront capital expenditures, making serviced offices a viable option for most entrepreneurs.

#2. There’s a Lack of Flexibility

People might think there are some rigid terms in the lease. It stems from the leasing models of traditional offices that include long-term commitments. Moreover, there will be limited customization options for your workspace setup. As a result, you might think that serviced offices don’t offer any flexibility.

But did you know that people often refer to this arrangement as a ‘flexible office space’? Yes, serviced offices are best known for offering high flexibility in scalable workspaces and short-term leases.

As a result, entrepreneurs can adjust their office size, relocate within the same network, and upgrade amenities for long-term success.

#3. It’s Only for Small Businesses

Serviced offices are often associated with startups and freelancers. These workspaces gained their initial popularity from smaller enterprises. That’s why many feel that it’s a cost-effective solution only for small businesses.

However, serviced offices cater to organizations of all sizes. Reports suggest that big companies are also shifting to serviced offices because of the in-house facilities, locations, flexibility, and cost-effectiveness. For example, companies like Meta, Microsoft, and IBM have all hopped on this trend.

Therefore, any enterprise looking for a cost-effective and flexible space to work can go for serviced offices for their operational efficiency.

#4. Limited Professionalism

Serviced offices are often associated with coworking spaces or shared offices. In these facilities, businesses might not have enough privacy. That’s why you might think that serviced offices also lack professionalism due to the diverse tenant base, noise levels, unstructured environments, etc.

Thankfully, this isn’t the truth. The leading providers of serviced offices design their locations with professionalism and privacy in mind. These high-quality infrastructures will give a polished image to business operations and client meetings.

As a result, these office spaces can ensure professionalism, productivity, and credibility among entrepreneurs.

All in all, serviced offices are the epitome of flexibility, cost-effectiveness, and convenience. Entrepreneurs must understand the reality of the misconceptions mentioned in this article. Dispelling these myths will help you make informed decisions about your growth ambitions and operational needs.

For example, some think that these workspaces are only for small businesses. However, serviced offices cater to enterprises of all sizes.

Remember, leveraging these offices can be a strategic asset in your industry.