Case Study: Academic Appointments
Case Study:
Pass
What to Consider When Moving Offices: Serviced vs Leased
Co-CEO Oliver Naylor, from Pass Learn, has shared his experience of scaling at a rapidly growing education business. Providing insight into the lessons learned while navigating the transition from serviced office space to leased office environment.ce to the teamโs space usability and company culture.
Before exploring the key considerations behind moving offices, it is worth briefly introducing the business behind the blog. Pass was founded in Harrogate in 2016 to improve educational outcomes in math and English through technology-led learning.
Today, through Pass Learn, we help adult learners change careers through online math, English and Access to HE Diploma courses. Many of our learners are looking to progress into careers such as nursing, teaching and other specialist industries, meaning growth and scalability have always been central to the business.
As the business expanded, we eventually reached a point where our office space could no longer support the team structure and culture we were trying to build. Having recently gone through the process of moving offices ourselves, we thought it would be useful to share some of the key things businesses should consider when deciding between serviced and leased office space.

Outgrowing a Serviced Office
For almost 10 years, Pass operated from a serviced office environment. Initially, it worked extremely well for us. Serviced offices offer flexibility, simplicity and reduced operational responsibility, which is ideal for smaller businesses.
The challenge we faced was that the building was designed primarily for businesses with teams of 1 to 10 staff. As we grew, we expanded into additional units over time until we eventually occupied nine separate offices within the same building.
Whilst this allowed us to continue scaling for several years, it gradually created challenges around communication, collaboration and team culture. Different departments became physically separated, and it became harder to maintain the unified working environment we wanted.
The final tipping point came when a single team within the business was about to be split between two separate office spaces. At that stage, we knew we needed to seriously evaluate alternative options.
Serviced Office vs Leased Space
This prompted us to properly compare serviced office space against taking on a leased office. During this process, we realised there are very different types of serviced office providers.
Our previous space had fixed office footprints, which made expansion increasingly difficult as the business grew. Growth often meant taking on additional disconnected units rather than adapting the workspace around the team structure.
We also explored providers such as WorkWell, where the approach felt far more collaborative and flexible for growing businesses, balancing headcount, culture and operational efficiency.
One of the biggest motivations behind the move was recruitment and retention. Our previous office location was positioned on the edge of town, which made commuting by train or on foot more difficult for staff. As businesses grow, access to talent becomes increasingly important, and transport links play a major role in that decision-making process.
Because we had spent so long operating from serviced offices, we understood the obvious benefits they offer:
- Minimal setup
- Predictable costs
- Managed facilities
- Reduced administrative burdens
- Flexibility to scale gradually
What we did not fully appreciate was how involved a move into leased office space would become.
The Hidden Costs of a Leased Office
When we initially reviewed the top-level numbers, leased office space appeared to make obvious economic sense. However, as the project progressed, it became clear that the cost gap between serviced and leased space was far smaller than we had originally budgeted for.
In many cases, it may actually make stronger commercial sense for a growing business to remain within a high-quality serviced office environment, irrespective of the other operational benefits.
There is a wide range of additional setup, operational and hidden costs that businesses should factor into any leased office evaluation before making a decision.
Setup & Ongoing Costs
When factoring in additional costs, some obvious ones spring to mind when moving from serviced to leased office space. Furniture is one example, but the reality is that setup costs quickly expand far beyond simply purchasing desks and chairs.
As you begin fitting out a larger leased office, countless operational items need to be considered, including:
- Furniture assembly and installation (most people have experience assembling IKEA furniture, but scaling that across 70 desks and chairs quickly becomes a major logistical exercise. The alternative is paying significantly more for pre-assembled furniture or installation services)
- Office removals and logistics relocation
- Packaging disposal and waste removal
- Kitchen equipment and appliances
- Coffee machines and refreshment areas
- Communal breakout furniture
- Meeting room and interview room setup
- Drinks fridges and staff facilities
- Delivery coordination across multiple suppliers
Many of these costs are relatively small in isolation, but collectively they become significant. For a team of around 70 staff, we quickly realised there were thousands of pounds of additional setup and operational expenses that had not been fully captured in the original cost analysis.
Alongside the initial setup costs, there are also several ongoing operational costs that become your responsibility in a leased space, including:
- Cleaning costs
- Utilities, particularly once heating and air conditioning are factored in
- General maintenance and upkeep outside of structural landlord responsibilities
- Internet and leased line costs
- Office consumables and kitchen supplies
- Security systems
- PAT testing, fire safety compliance and other health & safety requirements
- Repairs and replacement of office equipment and furniture
- Waste collection and recycling
These are the types of costs that are often largely absorbed within a serviced office agreement but become much more visible once you operate your own leased premises.
Legal Fees and Stamp Duty
Office leases above certain thresholds can attract Stamp Duty Land Tax, something we had not fully accounted for during the initial budgeting phase.
There were also legal fees associated with negotiating the lease, drafting agreements for lease (AFL), particularly where fit-outs are involved. This then incurs fees for fit-out approvals and building compliance.
Costs which can accumulate quickly and are often underestimated during early planning discussions.
Internet and Connectivity Challenges
One of the most underestimated parts of moving offices is internet connectivity.
Many businesses temporarily rely on 5G internet solutions whilst waiting for a leased line installation. Whilst this can work in the short term, it is rarely a stable long-term solution for businesses heavily reliant on cloud systems, video calls and online platforms.
The biggest challenge is that leased line installations rely on multiple parties working together. Whether thatโs coordinating with the landlord, internet provider, infrastructure suppliers such as Openreach or Virgin Media, or building maintenance teams and external contractors
The industry average for leased line installation is often quoted at around three months, but there are many stories of businesses waiting six to nine months, or even longer, before connectivity issues are fully resolved.
The difficult part is that no work can usually begin until the lease has officially been signed. This means businesses are often committing to move-in dates without knowing when their permanent internet connection will actually go live.
For an online-first business like Pass Learn, this became one of the biggest operational risks within the entire move process.

Fit Out and Infrastructure Decisions
One of the biggest differences between serviced and leased office space is that a leased office can effectively become a blank canvas.
Whilst this creates opportunities to design a space around your culture and workflow, it also means every detail becomes your responsibility.
We found ourselves making decisions on things we had never previously needed to think about, namely :
- Office layout
- Meeting room positioning
- Acoustics
- Power distribution
- Internet infrastructure
- Ethernet port locations
- Kitchen facilities
- Breakout spaces

The level of detail involved was far greater than we initially anticipated, and all of it ultimately costs time and money.
In a well-operated serviced office environment, you often have the flexibility to reshape the space and move walls as your team evolves, without needing to manage or contribute towards every minor detail of the fit-out yourself.
Final Thoughts
Moving offices is a significant milestone for any growing business, and there is no one-size-fits-all solution.
Serviced offices can offer enormous advantages during the early growth phase of a company. However, as headcount increases and operational complexity grows, there can come a point where businesses may consider a leased office as their next move. At the same time, leased spaces come with additional responsibilities, hidden costs and project management requirements that should not be underestimated.
For us at Pass Learn, we were fortunate that market conditions were favourable, and we negotiated an exceptionally competitive lease agreement. Even with that, however, the additional costs mounted up far more quickly than we initially anticipated.
Looking ahead, further expansion beyond our current space will almost certainly involve another serviced office environment. Although we have not taken space with WorkWell to date, their input throughout our office search was informative, collaborative and genuinely helpful, which is what motivated us to contribute to their blog.
As we continue to grow, we look forward to continuing those expansion discussions with the support of the WorkWell team.











