Why is the Demand for Virtual Offices Increasing?

virtual office

The way we as a society think about work-life has shifted significantly, most of all due to the covid-19 outbreak. However, that is not a bad thing, the pandemic accelerated trends that already started; flexible work arrangements, digital transformation, and remote work are among them. As a result, global economies are continuously relying on cloud-based solutions, small office space for rent, and virtual offices to support remote and hybrid teams.

In this article, we will make sure you learn everything about why virtual offices will become a crucial part of businesses worldwide. That is to say, we will also make sure you learn about why the market of virtual offices is growing so fast. On the other hand, you will learn why small office space for rent may suit your business massively. Let’s observe:

  • What is a virtual office?
  • Benefits of having a virtual office
  • Workplace shift to remote – hybrid
  • Remote-First
  • The role of office spaces is changing
  • Rethinking the workplace as we know it
  • How virtual offices are transforming business strategies?
  • How can Connect Business Centers assist you to access the best virtual offices in the UAE?

What is a Virtual Office?

A virtual office is an innovative service that allows companies all the benefits of commercial property; a telephone number, office address, administration, and communication services, and access to meeting rooms without the need for physical office space. In the same vein, this new way of work has become popular amongst entrepreneurs and freelancers working from home who want a professional-sounding address for their organization.

In addition, the virtual office also allows organizations with all the perks of a “brick and mortar” location without the overwhelming task of renting a physical office. Consequently, a virtual business address will add credibility to an organization making it easier to attract new customers.

On the other hand, this allows small and medium businesses to take advantage of a prestigious address, team support, and landline phone numbers without committing the long-time to an office space.

Office expenditures are massively reduced while the company keeps the impression of traditional high-cost infrastructure and office. Similarly, their professionals can work from home, or suburban offices, or their clients and have the reputation that a city center brings. In the same vein, our research shows that is important for customers to see a physical address on marketing and advertising materials.

However, even today, many independent workers and entrepreneurs make the mistake of relying on a mobile number for their clients to call. Therefore, most callers do not call back if the number is busy and will not leave a message on voicemail. Similarly, small office space for rent includes and landline number, answered by a human being and not a robot; who can take forward a call or take a message if it is required.

      2. Benefits of Having a Virtual Office

Virtual office spaces allow the business to increase productivity, more flexibility, and reduce commuting costs. Similarly, virtual offices lower massively technology costs and overheads; thus, making a more cost-effective solution to work.

2.1. Easy Expansion

A virtual office space allows your business to expand without needing to move to a bigger physical office. That is to say, this is a stress-free and low-cost alternative if we compare it to the traditional expansion process since it requires moving to a larger office and paying greater rent fees.

On the other hand, because space is not an obstacle, growing companies can use a virtual address to set a presence in a new location or in multiple offices around the country; while testing out new markets without the cost of moving to that specific area.

2.2. Makes the business more legitimate and professional

Having a prestigious business address along with a virtual office ensures your business stays professional and credible. In the same vein, using an office phone on your business card and a physical business address on your website, email, and business increases trust in clients and prospects. In conclusion, it increases massively your credibility and professionalism as a company and makes it more approachable.

2.3. Work from anywhere

Another good example of the benefits of having virtual office space is too long from whenever, wherever. Further, virtual offices are good for those individuals wanting to work remotely since it provides flexibility to work from anywhere, from a beach, from home, from the park, from anywhere you want. If you only need an internet connection it is ideal for you.

2.4. Cost-Effective

Virtual offices are more cost-effective than traditional physical office space. Above all, having a virtual office space is that you do not need to pay costly rent.

      3. Workplace Shift to Remote – Hybrid

Since 2020, the way we work is changing and consequently, our workplaces are changing as well. That is to say, the traditional office space is becoming outdated since it does not respond to the current business and worker needs.

Flexible office space and virtual office spaces, whether managed or coworking office space; are continuously becoming a top choice among entrepreneurs, SMEs, CRE leaders, and freelancers due to agility and flexibility. Likewise, the covid-19 pandemic is showing companies across all industries that if they want to succeed in this uncertain stage, they must be flexible and agile. Thus, companies must be able to adapt to all types of circumstances.

When it comes to flexibility, traditional CRD leases are naturally rigid; they are cost-ineffective and tenants breaking their original lease face tough fines. However, this is becoming a widespread practice, and the needs of the business are quickly evolving and changing, especially with a more flexible workforce.

However, a more fluid workforce means an organization’s space will vary on a yearly, quarterly, or monthly basis. On the other hand, it makes no sense for businesses to sign 10- or 20-year leases that retain them and do not allow them to grow.

When it comes to agility, it is all about empowering workers, and supporting them to work seamlessly and swiftly; it does not matter when and where they choose to work. Similarly, an agile workplace is not a single office location, it means several locations (coworking spaces, headquarters, virtual offices, etc.) supporting various types of work.

In conclusion, an agile workplace will allow the staff to collaborate in-person and digitally, and to work asynchronously and synchronously.

      4. Remote-First

The shift to a remote approach is part of the new way of work. That is to say, the covid-19 outbreak assisted even the most traditional industries to realize the importance of remote work. For instance, accountants and lawyers.

However, instead of paying office rent in the city centers to meet with their clients, accountants and lawyers have realized that they are able to meet with their clients remotely. On the other, hand they are able to visit their clients in their homes too (and charge an extra fee).

Similarly, for these types of industries; it is crucial to have access to a meeting space, keep a local presence, and have some privacy. Thus, small office space for rent is a great way to conduct their remote-first businesses.

Similarly, virtual offices are a very affordable option that allows workers to keep a local presence (phone number and renowned business address), improve customer service, receive mail, and have access to on-demand meetings and office space.

Consequently, the change to remote-first led to virtual offices and related services becoming a crucial part of the workplace environment of this decade. The acceptance and legitimacy of small office space for rent is necessary to suit the shift to remote work.

      5. The Role of Office Spaces is Changing

Before the covid-19 outbreak, everyone thought that a traditional office arrangement was necessary for competence, efficiency, and achieving your best. Similarly, companies used to compete for the best locations in important urban centers as a result of this thought; and many focused on promoting collaboration.

On the other hand, we all know that the pandemic caused most employees to work remotely, but this turned out to be a lot more successful than what was estimated. Thus, the ease and simplicity with which virtual offices, video conferencing, and other forms of digital media were used during the pandemic was a surprise for many.

However, a better work-life balance emerged from the stress elimination that workers used to have with long journeys.

      6.  Rethinking the workplace as We Know it

Certainly, the intensifying demand for cheaper spaces led to more flexible workspaces such as private offices, coworking spaces, and serviced offices. In addition, the number of independent workers also increased. Similarly, the workspace as we know it is changing; virtual offices are targeted at entrepreneurs and startups planning to work on their homes and other locations while mainlining an excellent image to their customers.

However, as we mentioned earlier there are several benefits such as fewer operational costs. In the same vein, many workspaces provider are relocating their small office space for rent to accommodate the growing demand for virtual offices.

On the other hand, studies have reported an increase in the productivity of those doing remote work. Thus, amongst 1000 professionals &7% reported a production increase. Distractions such as loud officemates, unexpected meetings, and water cooler gossip are avoided. In another survey done on 2,000 18-year-olds and up; 85% of them would rather work alone to reach maximum productivity.

Other statistics showed that 80% of the overall number of telecommuters reported lower levels of stress; this represents a good omen to both businesses and workers. It increases their morale and reduces both abs absenteeism and turnover.

Older generations are favoring the idea of flexible work hours. Similarly, workers above 64 years old are working more time than before; this is due to deficient retirement funds and increasing life expectancies. These professionals are delaying their retirement date and want to have the freedom to work remotely.

However, even though the practice of virtual offices remains unorthodox to some critics and academics; it is a global phenomenon. In conclusion, it is no surprise that the way we work is changing; it is up to us to keep up with the new trends as we face the future.

      7. How Virtual Offices are Transforming Business Strategies?

This new era of technological improvements increased the strategies to make the workspace a better business environment. In addition, the demand for hybrid workspaces is a direct result of the covid-19; companies discovered that downsizing their headquarters was a good measurement for several reasons.

Enterprise-managed and flexible workspaces have gained popularity in a positive way given the shift in the business mindset. However, while businesses want their workers to work directly from offices for a specific duration, they are keen to partner with managed workplace providers enabling them with a hassle-free expansion of their work examples across the UAE.

In addition, with the lines between professional and personal life blurring every day, workers tend to prioritize their well-being and safety more than ever.

      8. How Can Connect Business Centers Assist You to Access the Best Virtual Offices in the UAE?

As we have already seen, virtual office spaces are the future of the business perhaps for the next decade or more. That is to say, modern companies must adapt to the business environment caused by the Covid-19 pandemic such as flexible arrangements, remote work, virtual offices, and more.

Virtual office spaces provide many benefits and advantages crucial to allow your business to adapt to the new way of work. In addition, virtual office spaces will allow you and your workers to work from anywhere you want. On the other hand, this is a cost-effective solution if you compare it to leasing physical office space for 10 or 20 years.


Kate works at Connect Business Centers as Sales Manager, She is graduated from London and moved to the United Arab Emirates in 2017, She is a specialized agent for finding Business Centers, Office space, Co-working spaces to the clients based on their requirement and in addition to it, she also happens to be specialized in UAE mainland Company formation, Golden Visa, Bookkeeping, VAT registration and PRO services.

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