Shared Office Space & Its Benefits Explained

The dynamic changes in workspaces over the past years have drastically altered how people view office space. It’s no longer a stretch of cubicles across a room with traditional office structures throughout the rest of the floor – now it’s all about shared office space.

Shared office space has enabled businesses to significantly reduce costs while catering to diversifying employee needs. Its structure has proven to be ideal for startups, entrepreneurs and even large companies that seek hybrid office space or flexibility.

As of 2024, the shared office space market is valued at USD $41.39 billion, with the industry expected to grow to USD $62.75 billion by the end of the decade.

We have compiled all the information you need to know about shared office spaces, and by the end of this article you should know:

Let’s get to it.

What is shared office space?

A shared office space is a form of workspace in which multiple individuals or businesses use a single office floor.  The workspaces usually have several facilities and services that vary depending on the shared office, but some essentials are always present.

The average shared office space has office furniture, a reception desk, Wi-Fi and meeting rooms. However, businesses often prefer shared office space that provides more amenities to improve operations and efficiency.

Let’s have a look at some of the more desirable services that most businesses seek in their perfect workspace.

Best services in a shared office space

Location, team support, technology and flexibility are the key focus areas in a shared office space.

Address: The location of your business speaks volumes about its success, reliability and perception. While acquiring a private office in Market Street or Circular Quay is usually very expensive, the cost is reduced to a fraction when renting a shared office space.

Some shared office providers legally allow companies to use their space to register their addresses as office locations. Make sure to select a business address that delivers an amazing first impression!

Team support: High-quality shared offices provide their clients with a dedicated receptionist to answer their calls, secretarial support to tackle tasks and onsite I.T. support to ensure their operations remain smooth and safe.

Technology: Shared bandwidth is a cybersecurity threat and most shared offices use this kind of Wi-Fi. Check with the shared office team if they offer unique passwords and VLAN connections for extra safety.

What are the benefits of using shared office space?

There are many reasons why shared office use is on the rise, even amongst large companies.

Hybrid capabilities

Traditional office space vacancies have increased since people have begun favouring a balance between working from home and the office.

Enter shared office spaces.

All your team members need is the ability to maintain a work environment of concentration that is regularly cleaned by staff. Employees can work from home when they want and have a professional office space when needed at a low cost for employers.

Reduced costs

Businesses that lease commercial office space in a credible location can expect to pay upwards of $100,000 in rent and outgoings. On the other hand, shared offices don’t require a deposit and are generally a fraction of the cost of traditional office space.

A commercial office doesn’t come with furniture, a kitchen, IT infrastructure, or a support team. Your business is expected to make the necessary investments in those facilities, whereas a shared office cuts large costs by including these amenities in the cost.

Can be registered as your address

Depending on the shared office, there are services that allow you to register the address of the shared office as your business location. By registering a highly credible location as your business base, you can expect clients to have a great perception of your brand.

Convenient locations

Prestigious business addresses are great for many reasons.

Not only do they bring credibility to your business, but they are always conveniently located. These shared offices are in urban areas with robust public transport infrastructure, and travelling to them for meetings or general use is easy.

Ample public transport is essential, so ensure to select a location that is easily accessible for your team and clients.

Networking opportunities

A shared environment offers many opportunities to gain connections on a professional and personal level. Shared office spaces commonly host networking events or workshops, which are brilliant for acquainting yourself with neighbouring businesses.

It’s common to leave these events having made new friends, finding business growth avenues and adding to your knowledge pool.

Flexible leases

A shared office can be leased every month, and such flexibility is hard to come by. It provides security by reducing risk margins and giving you enough time to reassess your options if needed.

The average office lease can range anywhere from one year to five or more.

Not many businesses can commit to lengthy lock-in contracts, especially entrepreneurs and small businesses. Commercial offices have a higher risk factor associated with them, but shared offices are on the opposite end of the spectrum.

Flexible terms are the preferred option!

Flexibility in Workspaces

Select from hot desks, dedicated desks, or work from a relaxed coworking lounge for a more casual setting in a professional environment.

Having various options is great for breaking up your day and is preferred by employees who need an occasional change in scenery. Unlike traditional offices, the shared concept can quickly adapt to your immediate needs by upscaling or downsizing by simply increasing or reducing the number of desks you need.

It's a win-win scenario for business owners and employees.

Shared Resources & Amenities

At first glance, the idea of sharing resources and amenities with other people may be off-putting for some, but the advantages quickly make up for it. Imagine having access to the below at a fraction of the cost:

• Fully-furnished offices

• Dedicated landline number

• Mail handling services

• A receptionist to answer your calls

• Secretarial & in-house IT support

• Meeting rooms and boardrooms

• Kitchen

On top of this, flexible workspace providers such as Servcorp heavily vet all businesses to ensure that everyone occupying the floor is professional, legitimate, and safe.

Different types of shared office space and workspaces

Coworking spaces

Coworking spaces have become one of the most in-demand types of shared offices in the last couple of years. They are a flexible workspace where workers from all walks of life occupy shared space, fostering a community of like-minded individuals.

A coworking space is best suited to small businesses, freelancers, and sole contractors who thrive in a dynamic environment. However, now enterprises from multiple industries are using coworking spaces to increase their global footprint and reduce costs.

Access to coworking spaces may also be a part of a virtual office package, allowing remote workers to utilise office amenities when they need them.

Find out if a coworking space is worth it for your business.

Private offices and serviced offices

A serviced office is a fully furnished office space that offers access to support services, facilities, and amenities. Serviced offices come with everything a business needs to flourish in its day-to-day operations without paying high office costs.

They are becoming increasingly sought-after by established businesses due to their flexible terms, cost efficiency and business support, making them a viable alternative to traditional offices.

Fully serviced private offices are also on the rise as more professionals seek out office spaces with minimal distractions. Most serviced office providers include private office access as part of their membership.

Learn more about the difference between a coworking space and a serviced office.

Dedicated Desks

A dedicated desk is a worker’s own personal workspace in a shared office environment. Unlike hot desks, where a desk space can be shared between multiple people, dedicated desks provide individuals with their own space they can lease out for as long as they wish.

Who uses shared office space?

Freelancers and independent professionals

Freelancers, entrepreneurs, and sole contractors greatly benefit from using shared office spaces, giving them to access essential amenities and services needed to prosper.

Shared offices can be the perfect workspace for these professionals as they promote greater work-life balance and help increase productivity, leading to better business outcomes.

These spaces can help combat isolation and provide networking opportunities to connect with other professionals for potential collaboration or referrals.

Start ups and small businesses

Serviced offices and coworking spaces are particularly popular with small businesses and start ups.

The short-term leasing structures, scalability, and facilities make them affordable and flexible solutions ideal for these companies at all stages of their operations.

For example, a coworking membership for a company of seven employees means they can access top-of-the-range office facilities and equipment for a fraction of the price of traditional offices.   

Remote workers and digital nomads

Shared spaces offer a professional alternative to working from a coffee shop or home office for remote workers, which can be distracting or lack ergonomic support.

Enjoying similar benefits to freelancers, shared spaces can help alleviate feelings of isolation that can come with remote work and offer networking opportunities.

Large corporations

For larger corporations, shared office spaces are particularly useful for teams that don’t require full-time space. For example, they can provide meeting rooms and hot desks for teams that meet only once a week for a few hours and for other regular events. 

Shared office spaces, functioning as satellite workspaces, are also ideal for geographically dispersed teams or businesses expanding into new countries or regional markets.

Ease of global expansion

Shared offices support established businesses looking to expand into multiple office locations without forking out thousands of pounds on rent and new office setups.

This enables businesses to quickly set up a presence in new markets without the complexities and with support services already in place to make the expansion run as smoothly as possible. 

Find Your Shared Office Space

The sheer number of benefits, including savings on costs, networking opportunities, and flexible leases, make shared spaces a compelling option. If you're in search of a workspace, remember that selecting the right provider is key.

Not all office providers can provide the same benefits to give your business the competitive edge it needs to succeed. Servcorp has been helping companies grow with its virtual office, coworking space, and serviced office solutions for more than 45 years.

Find a shared office space that adapts to your unique business needs.