The office space rental business is projected to fade in 2023. The trend this year is expected to shift to Virtual Office and Business Address. So the question is, what are Virtual Office and Business Address? For more details, let’s see the explanation of the difference between Virtual Office and Business Address below.
Virtual Office
In short, a Virtual Office (VO) is an office that does not have a physical space but provides virtual space. However, there are some virtual office services that offer rooms such as meeting rooms, shared rooms or spaces, (co-working spaces), receptionist services, etc. And the tenants have the right to the legality of the address of the office service provider. The current need for VO is also driven by the hybrid and work from anywhere concepts that many companies are implementing. Virtual office space provides administrative support to conferencing services in the form of software provided by the service provider. Virtual offices also offer lower prices and are very helpful for business sustainability.
Advantages of using a Virtual Office:
- Having a Strategic and Prestigious Location
Usually, virtual offices are used by MSMEs who want to reduce the cost of renting office space to a minimum as well as entrepreneurs who have just started their business ideas. - Cheap Rental Costs
Rental prices for various types of property including offices continue to increase over time, especially in locations that are classified as strategic, business and commercial centers in urban areas especially.The presence of Virtual Office is the best solution for those of you business people who want more affordable rental costs but still get a strategic location and facilities that suit your company’s needs. - Save on Installation Costs and Routine Company Operations
Please compare for yourself if you set up your own office building, of course, you need to pay for initial installation costs such as building / room renovations, providing work equipment such as desks, chairs, and computers.
Disadvantages of Virtual Office
Besides having advantages, Virtual Office also has disadvantages. The disadvantage that often occurs is felt by tenants is that company employees who use virtual office services feel lonely because their office colleagues are not in the same place. Another drawback that is often felt is the frequent miscommunication due to the distance between office colleagues until it is hampered by technical problems. As an effort to minimize the company’s budget expenditure, in addition to Virtual Office, companies usually also choose to do Business Address only.
Business Address
Unlike a Virtual Office, as a tenant of a Business Address you are only entitled to the rights of the office address, not the space and other administrative support. If you only rent a Business Address then you will only use the address for correspondence or letters for your business purposes (such as from tax agencies, etc). An official Business Address in a commercial area is also required for the establishment of business entities such as PT and CV.
Pros & Cons of a Business Address
The advantage of renting this Business Address is that it is certainly cheaper than having to rent a virtual office complete with physical space. So those of you who want to establish a PT but still with an insufficient budget, can use the Business Address service rental. The disadvantage is that because there is no physical room, there will be obstacles or obstacles in communication and coordination between fellow employees and superiors.
