Serviced Offices or Flexible Managed Offices (FMO)

What are the office costs?

When comparing the costs of a conventional office lease with a serviced office it is important to consider all office running costs not just rent and rates. Total office costs are comprised of five main elements: Occupational costs, annualised costs, hard facilities management (FM), soft FM and management, as shown below. Together these form the total cost of keeping an employee at a fully serviced workstation.

total office costs diagrame

Research, such as the Chartered Institute of Purchasing and Supply's(CIPS) True Cost of the Flexible Office (2001), demonstrates that serviced office space is a truly cost-effective option in many scenarios. What the research cannot put a value on, of course, is the additional flexibility provided by serviced offices compared with conventional space.

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