Key Terms for Serviced Office Space
We’ve compiled a list of key terms used in the office rental world which we hope you find useful. Please feel free to email us with any suggestions for additions.Quick tip – if you are search for a particular word, you can always try pressing ‘Ctrl’ and ‘F’ together and type in the word you’re after in the box.
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Agreement [see also Licence] – Prior to occupying a serviced office, you will be asked to sign some sort of Agreement. They are normally called Licence Agreeements, but we’ve also seen them referred to as Occupancy, Service, or Workstation Agreements.
They will normally be short 2 – 5 page documents listing your obligations and rules of occupancy. Usually extemely simple and self-explanatory but pay particular attention to notice periods and any possible clauses on charge increases. Make sure you ask if there is anything you are unsure of – better to be safe than sorry!
See also Licence.
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Brokers – There are a large number of office brokers on-line who all act as middle men between you and the operators. They will be able to put you in touch with a large number of offices that you may not otherwise be able to find.
Most are based in the South East, so don’t always expect them to know your local area. You have no contract with a particular broker and you are free to shop around until you find one you are happy with, preferably with a consultant who has visited the offices they are describing to you.
The service is free to you, but they receive commission on all placements they make.
See also Serviced Offices Advice section.
Business Centres - A common term which unfortunately covers quite a lot, from airport business lounges, to a few meeting rooms in a hotel. Throughout this site, ‘business centres’ is used in relation to dedicated office blocks that rent out seperate offices but provide shared reception facilities.
See also FAQs and The Business Centre Association.
Business Rates – Basically the commercial equivalent of council tax. Most serviced offices will include them in the Licence Fee, but do double check.
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Cat 5 / Cat 5e - Used to descirbe the standard of cabling in the offices. It is more than adequate for the vast majority of businesses and is pretty standard across the industry.
Centre Manager – One of the most important people in serviced offices. They will look after almost every aspect of the centre from reception staff to cleanliness of the toilets. A good Centre Manager will know your business and be able to respond to clients needs individually.
They won’t always be the person you meet when looking around an office as many places will have seperate selling staff, but be sure to meet them before you move into an office. A good centre manager will really make a difference, which is unfortunately the case for all the wrong reasons with a bad centre manager too.
Commission – Most operators will incentivise their staff to sell by paying commission. However, the big commission is made by online office agents or ‘office brokers’ who receive 10% of any licence fee for one year if you choose to go via one of their websites. It is paid by the operator so will not affect you but you should be aware of this.
Comms / Comms Room - Comms is short for communications and includes Internet and telephone connectivity. Most of the equipment to make this happen is stored in a comms room. You may be able to put your own equipment in a shared comms room in a business centre but may be asked to pay – you are using their space, their air-conditioning, and their power so it is only fair.
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Data – At home, it’s the Internet, in the office it is referred to as ‘Data’. There are two types of ‘traffic’ going to and from your office - Data and Voice. Simply, data is internet browsing, email, downloads and uploads.
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Kitchen facilities – You will normally share a kitchen in a business centre with a number of other clients. On a viewing, look out for a good kettle, whether milk is supplied (only a small thing, but if you need to provide your own it can be frustrating if someone else has finished it off when you really need a brew!), and facilities for storing your lunch. They can be a great place to network too.
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Licence / Lease - One of the key differences between serviced offices and a traditional office is that you sign a Licence rather than a Lease. In short, a Licence is a contract to allow occupancy of an office for a set period of time in return for a fixed fee. The business centre management will still be able to enter or occupy the office if needed.
A lease, on the other hand, is a legal asset and gives someone the right to possess property, so the business centre would effectively be giving up their right to enter the office.
You shouldn’t need legal advice to sign a licence, so this aspect of serviced offices will save you time and money.
See also Agreement.
Licence Fee – This is the charge you pay for occupying the office. It is not called rent because it includes far more than just office rent. It will usually include business rates, utilities, service charge, furniture and numerous other services too. It saves you a lot of administration time and stress dealing with third parties.
If a serviced office operator does quote a ‘rent’, make sure you check what, if anything, is included with that.
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Notice - After moving in, the next big step is moving out, which means giving notice. Every Licence is different when it comes to the notice period so all we can say is to make sure exactly what yours is. Some operators will specify a particular date when you must give notice and if you miss it, you could find yourself tied in for an extra few months. Ask specific questions on this clause if you are unsure.
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Offices - If you’re struggling with this one then I really don’t think we can help.
Offices North West - Our site and a fantastic resource for those looking for serviced offices in the North West.
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Reception Services – Business centres normally have a shared Reception so you do not have to employ a receptionist or allocate valuable office space as a waiting area. Call answering in your company name, visitor greeting and incoming mail sorting are normally inclusive services. You may also be able to pay extra for Reception to frank outgoing mail, type documents, or similar admin tasks – great as holiday cover and cheaper than a temp!
Regus – The largest provider of serviced offices in the world. You can’t really search for offices without seeing the name at some point but biggest isn’t always best – www.regus.co.uk
Rent – With traditional offices you normally pay rent and then pay seperately for business rates, electicity, water, cleaning, service charge and so on. In serviced offices you pay a Licence Fee, which includes the rent and many other charges.
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Service charge – Traditional offices will charge you a seperate service charge that covers items like plumbing, window cleaning and general maintenance of the building. It will be included with the Licence Fee in a serviced office.
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Telephone answering - A service that normally comes as standard with every service office. The reception staff at the business centre will answer your calls in your company name before transferring them to them to the relevant person or taking a message. A fantastic aspect of serviced offices and will save you a lot of money!
Term – This is the amount of time you will be committed to an office. Most operators stipulate a minimum of three months, but you can find offices with one month terms if you want really flexible offices.
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Virtual Offices – In short, a mailing address and call answering service at a business centre. Ideal if you are working from home but need a more professional address or don’t want to use your home phone for business.
Very popular with businesses looking for a foothold in a new market, e.g. a property company in London looking to expand into Manchester may take a virtual office with a business centre for 3 months to run a recruitment campaign for staff and judge demand in the area before taking a full-time office.
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Workstation – The most common term in serviced offices! It basically means a desk for one person. It will include a chair and some storage space too. If they charged ‘per person’ then it would cause confusion if staff numbers changed, but a workstation is always going to be there.
See also FAQs.
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