Choosing the right office space is crucial for any company. Understanding the differences between coworking spaces and private offices can ensure you make the best choice for your business and employees.
In this article, we will compare each office rental option, including pros, cons and price comparisons.
What is the Difference Between Coworking and Private Offices?
A coworking space is a shared, open-plan area where professionals from different organisations can work. On the other hand, a private office is an enclosed, lockable space dedicated to one organisation.
About Coworking Spaces
What Are Coworking Spaces?
Coworking spaces are shared office environments best suited to small teams or individuals. They usually offer hot-desking, where members can use any free workstation, or a dedicated desk membership, where individuals have a reserved desk.
Along with access to a workstation, coworking environments also offer shared amenities such as phone booths, private meeting rooms, and breakout spaces.
Pros & Cons of Coworking Spaces
Pros
Cost-Effectiveness: Coworking memberships are generally cheaper than renting a private office as sharing facilities lowers costs. This provides an affordable option, especially for companies looking for workspace in areas like Shoreditch or Soho.
Networking Opportunities: The community aspect of coworking set-ups boost networking opportunities between businesses. This can encourage partnerships and shared learning.
Flexibility: Coworking spaces offer monthly rolling contracts, which allows companies to add/remove memberships as necessary, further reducing costs.
Amenities: Many coworking providers, especially those in London, often offer additional services such as mail handling and IT support. Some buildings also provide members with access to wellness programs and free refreshments.
Access to Prime Locations: Prime London locations are expanding their coworking offerings. This allows companies to establish their presence in these areas for less than renting a private office.
Cons
Limited Privacy: A shared environment may not be suitable for companies that handle sensitive data or require high levels of privacy.
Distractions: As coworking spaces are open layouts, noise levels may affect productivity.
Restricted Access: Many coworking spaces have fixed opening hours, which can be restrictive for companies that work late or across multiple time zones. High demand for facilities such as meeting rooms and phone booths can also be a challenge.
Minimal Branding Opportunities: Limited control over the workspace can make it hard to establish a brand identity or customise the space.
Why Businesses Choose Coworking
Lowering Costs: We have found that one of the main reasons an organisation chooses coworking is the low costs. Coworking spaces still offer access to premium facilities, such as meeting rooms and roof terraces, but they are cheaper than renting a private office.
Collaboration: Shared environments are fantastic for networking which makes coworking spaces the ideal fit for industries that thrive on collaboration. Freelancers such as writers and designers often choose coworking spaces in areas like Fitzrovia to benefit from the local creative community.
Ideal for Hybrid Teams: Coworking spaces offer a balance between remote and in-person work. They provide a professional space for teams to collaborate on the days they don’t work from home.
About Private Offices
What Is a Private Office?
A private office is a lockable room rented exclusively to a single business for its operations.
Serviced offices are private offices in business centres with access to shared amenities. They are managed and maintained by a dedicated team offering a plug-and-play option. Pricing is all-inclusive, with one monthly fee paid to the provider, which includes rent, bills, and service charges.
Leasehold offices, whilst still private, are a more traditional solution where companies lease space directly from the landlord. Tenants then must cover all set-up and maintenance costs.
Pros & Cons of Private Offices
Pros
Privacy: The enclosed environment provides unparalleled confidentiality for businesses handling sensitive information.
More Customisable: Private offices provide more customisation options. The level of customisation depends on the type of private office you rent.
For example, a private serviced office may not allow you to put branding on the outside of the building. A private leasehold office may let you fully brand the space - however, you will be responsible for the cost.
Enhanced Credibility & Reputation: A private office in a prestigious location such as Mayfair or Knightsbridge will boost your reputation with clients and investors.
Greater Security: A lockable workspace controls who can enter your office and when.
Business Support: Serviced office providers also offer administrative services and IT support to allow businesses to focus on core operations.
Cons
Higher Costs: Private offices, especially serviced offices in locations like Central London, are more expensive than coworking memberships.
Longer Commitments: Private serviced offices offer flexible contracts like coworking spaces. However, some providers have a minimum term of 3 months, which is longer than the minimum term for a coworking space.
Reduced Networking Opportunities: In a private office, there are fewer chances for spontaneous interactions and networking opportunities.
Why Companies Rent Private Offices
Privacy: We have found that businesses handling sensitive or confidential information often rent private offices. For example, legal practices and law firms opt for serviced office space in areas like Holborn to benefit from the proximity to London’s legal district.
Security: High-security features such as controlled access and advanced IT infrastructure make private offices appealing to companies like investment firms. Many financial institutions choose offices in Canary Wharf for their prestige and security features.
Impressive Spaces for Client Meetings: Polished and elegant meeting rooms provide a fantastic first impression for client meetings. Organisations that rely on face-to-face client meetings, such as management consultancies, often rent private offices in Victoria where premium meeting facilities are available.
Cost Comparison of Coworking & Private Offices
We have created the first pricing tool to compare the prices of serviced offices in London and the UK. Using our data, here is an easy comparison of coworking and private office pricing in London.
| Coworking Price From | Serviced Office Price From | |
| Greater London | £75 | £317 |
| Central London | £373 | £452 |
Pricing for office space can vary greatly depending on factors such as location and amenities available. Central London locations like Mayfair and the City are more expensive. On the other hand, less competitive areas have more cost-effective options.
Flexibility & Scalability
Flexibility and scalability are key features of any serviced office environment, whether a coworking space or a private office. Each option offers varying levels of flexibility and scalability.
Coworking spaces typically offer monthly rolling contracts, which provide fantastic flexibility. For instance, a startup can quickly and easily add coworking memberships as their business grows.
Private serviced offices also offer month-to-month contracts, but this often depends on the provider, as some providers have a minimum term of 3 months. For companies looking to upsize or downsize, this could result in unused or limited office space in the short term.
However, serviced office providers offer the option of renting additional rooms or floors in the same building. This gives businesses a base for long-term growth.
Coworking spaces and private serviced offices each have advantages and disadvantages. Whilst coworking spaces are perfect for flexibility and collaboration, private offices offer unparalleled privacy and security.
The diversity of London’s office space provides options for startups in Shoreditch to financial institutions in Canary Wharf. So, choosing the right option for your business goals, budget, and size is key.
