When a small or medium-sized business is looking for new office space, there are typically two main options: a private leased office or a serviced office. Both have their advantages, and their costs are structured very differently. That is why it is important to consider not only the costs, but also your operational needs and expectations for the workspace.
Private Leased Office
With a private office, a company rents an entire space exclusively for its own use and is responsible for furnishing it and arranging all necessary services. The greatest advantage of a private office is complete control over the space and the ability to tailor it entirely to your brand and company culture. In many cases, the rental cost per square metre is also lower than in a serviced office.
However, businesses also pay for hallways, break rooms, and other shared areas within the premises that may not directly contribute to productive workspace. Additional drawbacks include longer lease terms—often three to five years, depending on the extent of fit-out work required—as well as hidden costs beyond the rent, such as cleaning, internet, electricity, maintenance, and the administrative time required to manage the office.
Office Room in a Serviced Office
In a serviced office, a company rents a private office room while sharing common areas and core services with other businesses. Lease agreements are typically more flexible, with notice periods often ranging from one to twelve months. Companies pay a single fixed monthly fee that covers not only the office room itself, but also a wide range of essential office services.
Serviced offices are often seen as a hassle-free solution, offering predictable costs and the ability to scale office space up or down as business needs change. While the cost per square metre is generally higher than in a private office, there is less opportunity to influence the design of shared spaces and the range of services provided.
Which Option Is More Cost-Effective?
At first glance, a private office may appear more affordable when comparing rental rates per square metre. This is because office leases typically only specify the rental cost of the premises themselves. However, once additional expenses are taken into account, the picture often changes.
As a general rule, serviced offices tend to be the more cost-effective option for small and growing businesses with approximately 1–30 employees. For medium-sized companies with around 30–150 employees, either option can be financially viable depending on the organisation’s needs and priorities.
Example: Office Space in Erottaja
If you are looking for office space for 10 employees, a private office with workstations and common areas would typically require approximately 150m². In a serviced office environment, a private office room for the same team could be less than half that size.
Although the rental rate per square metre may be significantly lower in a private office, the larger space requirement often reduces the difference in total cost. In a serviced office, you only pay for your private office room while benefiting from shared amenities such as lounges, kitchens, phone booths, meeting rooms, and other common facilities.
| Private Office 150m²/month | VillageWorks Office Room 50m²/month | |
|---|---|---|
| Office rent | 4 000–4 500€ | 5 200€ |
| Cleaning | 300–500€ | Included |
| Coffee and tea | 100–200€ | Included |
| Printing | 50–200€ | Included |
| Electricity | 200–300€ | Included |
| Internet | 100–250€ | Included |
| Security and access control | 100–400€ | Included |
| Office furniture | One-time investment | Included |
| Estimated total/month | 4 850–6 350€ | 5 200€ |
Please note: All prices are indicative and may vary depending on timing, provider, location, and other factors. Prices exclude VAT.
Example: Office Space in Kamppi
For a team of four employees, a suitable private office would typically require around 50m², whereas a serviced office room of approximately 20m² would generally provide sufficient space.
| Private Office 50m²/month | VillageWorks Office Room 20m²/month | |
|---|---|---|
| Office rent | 1 250€ | 830€ |
| Cleaning | 120–200€ | Included |
| Coffee and tea | 50–100€ | Included |
| Printing | 20–60€ | Included |
| Electricity | 60–100€ | Included |
| Internet | 60–100€ | Included |
| Security and access control | 30–80€ | Included |
| Office furniture | One-time investment | Included |
| Estimated total/month | 1 590–1 890€ | 830€ |
Please note: All prices are indicative and may vary depending on timing, provider, location, and other factors. Prices exclude VAT.
In addition to the costs listed above, VillageWorks memberships include access to phone booths, six hours of meeting room usage per month, a reception service for welcoming guests and handling mail, and day-to-day support from the on-site community team.
VillageWorks’ community coordinators and staff take care of the practical aspects of running the workplace, meaning businesses do not need to worry about stocking coffee, replenishing supplies, coordinating service providers, or handling maintenance issues.
One of the key advantages of serviced offices is cost predictability, which is particularly important for smaller businesses. Service levels vary between providers, ranging from basic workspace solutions to comprehensive office services. At VillageWorks, we believe in a transparent all-inclusive pricing model that keeps costs predictable and allows businesses to focus on their work rather than office administration.
