How Much Should You Pay For a Serviced Office in Berlin

Finding the perfect office space in Berlin has long been a challenge for thousands of businesses wanting to establish themselves in the German top business centre. 

If you’ve ever searched for “rent office space Berlin” then you’ll know that thousands of listings immediately pop up, ranging from traditional office rentals to flexible workspace or Service Office.

Berlin has been among the top performers in the business sector for years, with the city continuing its historically strong performance in key dimensions such as innovation, outreach, regulation, resilience and business infrastructure.

It is easy to see why office space in Berlin remains in high demand to allow companies to put down roots. Nevertheless, the availability of prime real estate has decreased, and research shows that real estate shortages at the beginning of 2024 mainly affect the most sought-after locations such as Berlin-Mitte, Potsdamer Platz or the government district.

In response to these ongoing trends and the rise of hybrid working, many businesses are turning to Serviced Offices as a more cost-effective, flexible alternative to traditional office spaces, a choice many business owners wish they made sooner.

If you’re looking to switch to Serviced Offices for your business but are unsure of the costs, then our useful guide will help you decide if it's the right move for your business and what you should expect to pay for an office space in Berlin.

For this guide, we will primarily discuss the costs of Tier 1/Grade A office spaces since almost 70% of the office space market is in this classification.

What is a serviced office?

As the name suggests, Serviced Offices are office spaces that come fully furnished with essential amenities provided by a facility management company.

Unlike traditional office spaces, a Service Office provider offers their clients flexible, monthly rental contracts that are tailored to fit each company’s needs, rather than being tied down to a traditional lease on a fixed contract.

In the last few decades, Serviced Offices and flexible office space have seen a rise in popularity in most major cities and are present in any financial hubs with a thriving economy.

On a day-to-day basis, clients of Serviced Offices have access to a range of workspaces including Service Office space, conference and meeting rooms, hot desks, and other flexible workspaces.

Depending on the service provider, Serviced Offices amenities include:

• Shared facilities such as a fully stocked kitchen with tea, coffee and other essentials
• High-speed internet, VPN connections, and AV services such as video conferencing etc.
• IT and secretarial support services to help manage your teams day to day operations
• Mailing and courier services

 Traditional vs Serviced Offices: Where businesses can get a better deal

As a business owner, your office space needs to be functional, fit your team size and be a productive environment where your employees can thrive. Yet, you also need to ensure that your space is cost-efficient and doesn’t take away from your overall revenue.

In Berlin, the average office rent is €34/m². However, according to a number of factors discussed later in this guide, this price could be between 750€-1,500€ based on the total rent. While €700 per person sounds like a good deal, offices in this price range often come without essential services and tend to be too small and not meet the needs of clients. It is therefore important to research and compare carefully.

Serviced Offices can save your business from the following ongoing costs and overheads.

Rent

Recent data indicates that year-on-year prime rents are rising at the fastest rate since 1992, particularly for offices that are well equipped, sustainable and centrally located in the greater Berlin area.

In the commercial real estate industry, price per square meter is the most commonly used measure for renting office space, with the average cost per square meter in Berlin being €34..

By choosing a Serviced Office as your next office, your monthly fee means you’ll be paying for not just the space, but for everything else included by your office providers. The flexible leases of Serviced Offices make them more sustainable from a cost and revenue perspective.

Fit out costs

Have you ever stopped to consider how much an office fit-out costs for your business?

When talking about your office fit-out, we aren’t just talking about furniture and equipment, it also encompasses the building’s overall design and mechanical and electrical systems. Office spaces without properly functioning systems, such as heating and cooling, ventilation and power supplies will need to fix these issues which can be very expensive.

 As of 2024, a standard mid-market interior fit-out for offices in Berlin, the equivalent of what most work environments currently offer, will cost €34 per square meter, which means between €600-900 your company will spend per person. And this figure doesn't take into account the many needs and wants that companies look for in an ideal office space, such as smart office technology infrastructure or bespoke joinery and finishes.

 By renting out a Serviced Office for your company, your workspace comes fully furnished with luxurious design finishes and you no longer have to worry about any building management concerns, as these are all taken care of by Serviced Office providers. 

IT and Reception/Secretary Personnel

One of the many services included by some Serviced Office providers is their secretarial and IT support staff. These service provider staff act as a vital support system for your business, allowing you to delegate administration and technical tasks for you to focus on growing your business.

 When you choose a Serviced Office with these staff members on hand, you can save tens of thousands of dollars by not employing specialists in these roles.

 Annual salary costs per employee:

Receptionist: Up to €42.000

 For small businesses and start-ups, making significant savings on these costs are huge advantage, allowing business owners to focus on their products and services without the administrative hassle.

 Prices for Serviced Offices in Berlin

Location

When comparing the costs of Serviced Offices in different parts of Berlin, it becomes evident that the most sought-after locations come with a premium. Let's compare two popular locations within Berlin: Berlin Mitte and Charlottenburg. While both are recognized as significant business centers, the prosperity and prestige of Charlottenburg mean that business owners would expect to pay more for a Serviced Office in such a location compared to an equivalent space in Berlin-Mitte. Based on average prices, renting in Prenzlauer Berg costs almost three times more than renting in Berlin-Mitte. Companies need to determine whether the benefits of being in higher-rent areas outweigh the additional costs, known as the "prestige tax," on their financial statements. While the credibility derived from the postal code 10785 may be advantageous for many firms, the extra cost burden may not make sense if there is a comparable space in an emerging area like Berlin-Mitte.

Market Demand

Market demand and competition also play a crucial role in shaping the costs of Serviced Offices in Berlin. Areas with high demand for office space and limited availability often lead to increased prices due to heightened competition between businesses. One such area that is always popular is in the city center of Berlin, where costs per square meter are around €30, and this price is expected to continue rising. Overall, the market for flexible offices is gradually increasing as it removes entry barriers for small businesses and provides hybrid capabilities.

Support Services and Amenities

Most coworking providers offer the basics: dedicated workspaces, Serviced Offices, meeting rooms, and a kitchen. For higher-end service providers, additional facilities included in your monthly rent may involve access to gyms and fitness centers, catering for meetings and events, IT, and secretarial support, mail management, and a whole range of offering that make Serviced Offices attractive for both companies and their employees. 

Capacity and Space

Office size is crucial. If you have ever been cramped in a small office, you know that every additional square meter means greater comfort, allowing you to complete your work faster and in higher quality. Larger offices and more space than the average desk size will likely result in higher monthly fees due to increased operating and maintenance costs. These costs can add up depending on the number of employees and the number of services or individual offices needed. Nevertheless, even if you have ten employees, each at a rate of 3.000 per person per month, this is still a more cost-effective option compared to a traditional workspace.

In conclusion, if you are seeking a guide to choosing the right Serviced Office space for you, our essential tips will help you on your journey to finding  your new idyllic workplace. Visualize yourself working in the space and pay attention to the services included. After all, without the service, you only have a desk and a chair within four walls.