The differences between conventional commercial properties and serviced commercial properties are quite simple. The former refers to a straightforward commercial lease, by which a company obtains sole rental use of the property. The latter refers to lease agreement in which a company rents a commercial space that is provided along with extra amenities, such as secretarial or postage services. Serviced commercial properties are usually (but not always) a part of a larger commercial complex, such as an office block.
Decisions made with regards to the new premises of a company are vitally important, as they can affect the potential future growth and financial success of said company. For this reason, understanding the advantages and disadvantages of serviced and conventional commercial property is crucial.
Serviced Commercial Property (SCP)
It’s no secret that the number of commercial properties which are let on a serviced basis have risen exponentially. This is partly because of the increase in the number of commercial complexes, but also owes much to the many benefits of renting serviced property.
The key to SCP is flexibility. By contrast to CCP, SCP leases offer companies more flexibility with regards to duration, less responsibility towards maintaining the building and the potential for either expansion or downsizing without the inconvenience of having to move out of the building. Pricing is often all-inclusive and crucial communication services, such as telephone and Wi-Fi access, are provided from day one. Also because SCPs are so flexible, prestigious companies such as Landmark PLC are able to offer serviced property to both small and large companies.
Conventional Commercial Property (CCP)
CCP leases are more akin to a private rental lease than those provided for serviced property. A CCP is self-contained – the company rents the entire space and is solely responsible for it. Savings can be made from the outset in that the cost of extra amenities is not factored into the lease cost. However, the size of a CCP can drive up the lease price, since there is no option to rent only that space which your company requires.
CCPs do have the distinct advantage that the leased space can be used for anything the company requires, which is of invaluable benefit for companies providing complex business services which may vary from week to week, or month to month. A CCP can be used for offices, conferences, storage, installations and any other necessary commercial purpose that is permissible in the terms of the lease.