What is a Serviced Office Space?
Serviced Office Space
Serviced office space is one of the most popular office concepts around the world. Although the concept is very new in Turkey, it’s spreading very fast, especially in Istanbul’s office market, as well as other major cities of Turkey, such as; Ankara, Izmir, and Adana.
Serviced Offices, a General Outlook
Have you ever given thought to how much space you are effectively using in your office? Excluding the spaces reserved for hallways, reception, meeting rooms toilets, and such common-use areas, it’s safe to say that companies use approximately 5 to 10 square meters per person.
This is exactly what serviced offices have to offer. Common-use areas are to be shared between multiple occupiers, and you lease your own office space, only. For instance, a serviced office space for three people usually covers more or less 15 square meters net furbished office area that you may move in with your personal or corporate computer and stationary equipment. Usually, occupiers have a limited right of daily meeting room use with appointment and more with extra charge.
Serviced office space is a concept that is providing its inhabitants not only an office space but all components and services that one may need in the office. Not only office furniture, but secretarial or answering service and reception, security, electricity, water, basic hot and cold beverages, internet, air conditioning, and ventilation costs, and many other invisible costs are to be collected under one invoice.
Serviced Office Space: Prestige, and Comfort for The Occupiers
London has West-End, Paris has Avenue des Champs-Élysées and Istanbul has the Esentepe – Levent district and Maslak on the European side, and, Kozyatagi and West Atasehir district in the Anatolian side. These are the main Central Business Districts and are expected to remain to be so for ages. These districts contain both traditional offices with a variety of building quality and prestige and serviced office spaces.
Due to the nature of developments, traditional office units in these districts begin with apps. 225 square meters (gross), therefore their costs may be a bit more than what you may desire. On top of this, there is a unique issue for Turkey; “withholding tax.”
The vast majority of these office units belong to private individuals which is a situation that compels the tenant to pay 25% of the net rent amount on behalf of the landlord and is not deductible from the tenant’s tax debts.
Here is a related article that might interest you for further reading; “Corporate Taxation in Turkey.”
On the other hand, properties owned by a company or institution or which can be sub-leased from an existing tenant, which is an extremely rare case of practice, and serviced office spaces are subject to 18% VAT, which is totally deductible from the tenant’s tax debts, which offers the tenant 25% advantage comparing to an individual office unit.
Not only the tax advantages but by providing the top-quality office furniture in advance, overall service charges and costs for security, air conditioning and ventilation, personnel cost for reception services and even electricity, water, and internet consumption costs; serviced office spaces offer the most efficient and cost-saving solutions for your Turkey station with a win-win scenario by dividing those fixed costs to many tenants occupying a shared office area.
Therefore, although the rent amount per square meter in serviced office spaces might be considerably higher than traditional offices, adding all the other office costs and taxation advantages on top of this amount makes serviced office spaces and a lot more desirable concept.
Serviced Office Space: Cooperation with Property Consultants in Turkey
Serviced office space operators usually prefer to work with property consultants in Turkey because major property consultancy companies have their global clients coming into the local market or looking forward to moving to a new location and are obligated to work with those companies due to their global agreements.
As per the local property consultancy companies, a property consultant in Turkey may be assisting the decision-maker of the tenant candidate in all of his or her property searches.
The vast majority of major companies and investors already have their global partners in solution which provides them local guidance in terms of property consultancy. It’s only natural to expect saving time and money by having the right partner in solution to evaluate the local conditions.
You can use these services to find the right solution for your residency, office for your start-up, or hopefully a bigger office space for the enlargement of your business. Even if the commercial body that you are involved in has a global partner in solution, they are usually expertized in commercial properties, and it’s a very high probability that the local team of that partner can be specialized in commercial properties only, and can’t help you with your residential demands as much as required. In such a case, the most efficient option for you would be working with a recommended local property consultant expert in his or her field.
Serviced Office Spaces: Who Might Prefer the Concept?
Actually, all office occupiers may prefer serviced office space rather than traditional offices. A grand variety of occupiers from private individuals who are working on their own to global blue-chip companies prefer the concept.
Not only the financial advantages that serviced office space have to offer but the peace of mind that the serviced office provider is managing their office’s needs attracts almost any office occupier’s attention to serviced offices.
At the end of the day, not only the liaison offices of global companies, start-ups, or small bodies but almost all kinds of office occupiers may prefer the serviced office space due to the advantages they have to offer.
You might even ask to operate your existing office operations by a serviced office operator and so you will keep benefiting from the taxation, operation, and personnel advantages and keep the privacy of your office.
Serviced Office Space: Locations and Standards
There are a number of serviced office providers in Turkey as well as office buildings with individual office units. In order to find the best solution for your needs or the individual office unit that you may require, it’s essential to ask for proper guidance for local solutions.
You may prefer the serviced offices in the prime office buildings of central business districts as well as ones in more traditional buildings with more reasonable prices or locations outside the central business districts such as Maltepe or Kurtkoy. Proper guidance from your property consultant and serviced offices operator’s team will enable you to choose the right option for the right budget.