I have seen and heard much speculation over the 2012 Olympics in the media since Boris Johnson accepted the Olympic torch on behalf of the United Kingdom at the end of the 2008 Olympics in China.  For some unknown reason, all too much of it is negative.

There is something about the psyche of the UK that cannot accept greatness, or is not surprised at – almost expecting – failure.  Whether it’s a backlash following the British Empire or World War II, part of some greater circle of life, I don’t know.  One thing I do know is that our media peddle doom and gloom, and the only reason they do that is because we buy it; if it didn’t make them money they wouldn’t do it.

But this negative outlook makes us all over-look what is great about our capital.  There is so much of which we should be proud.

London has been a major settlement for two thousand years, and in that time has grown to be one of the most influential cities in the world.  It is the world’s largest financial centre along with New York City.  The heart of London’s financial sector, known simply as ‘the city’ has barely changed its boundaries since mediaeval times.

It is also home to the first and – save for Shanghai – most extensive underground railway system on the planet.

London’s Heathrow airport caters for more passengers than any other airport, and its airspace is the busiest of any urban centre across the globe, carrying more international visitors into the city last year than any other city bar Paris.

The city boasts an impressive cultural heritage with a diverse range of centres of excellence, including Kew Gardens, the Natural History Museum, V&A, Tate and Tate Modern across the Thames in Waterloo and Southwark, Royal Academy of Music, RADA, Royal Opera House in Covent Garden – the list goes on.

St Paul's Cathedral in the City from London's Millennium Bridge

Many of the world’s most famous landmarks can be found in London including St Paul’s Cathedral, Tower Bridge, the Tower of London itself and the Houses of Parliament with the iconic ‘Big Ben’ tower.

Even the world’s time zones are calculated relative to Greenwich, within the borough of London.

And let’s not forget, the city has already hosted two Olympic Games, one of which was within three years of the end of World War II which decimated so much of the city and its infrastructure.

So let’s turn over a new leaf, United Kingdom, shall we?  Let’s focus on what goes right at the Olympics in 2012, not scrutinise every mistake and splash it across the headlines.

Let’s just be proud for once.

My previous post suggested companies looking for new office space can make substantial savings if they are lucky or shrewd enough to find an office that has already been designed and fitted out. I receieved quite the response on this subject and the majority were similar enquiries:

• How much can I actually save by doing this?
• Open plan may be preferable anyway if the saving is not significant.
• What is the cost of decking out each individual work station?

Well, without wishing to glibly answer how long is a piece of string? I have come across a  canny office design and fit out contractor called PPC, who have made a name for themselves advising tenants  how to adapt new office space all over Central London to meet their requirements. As they are always completing a variety of projects, they are able to give good cost comparisons.

I mentioned my previous blog post to them and they have kindly agreed to give indicative cost estimates free of charge to FindaLondonOffice Blog readers. Mention FindaLondonOffice to them to receieve your free estimate. You can find them at http://www.ppcllp.com/.

The office letting market continues to evolve all the time. Recently, there has been a growing trend towards opting for sublet office space. It’s appeal stems from the fact that in-going tenants have the opportunity of acquiring an office with a tenant fit out, meaning that they can potentially get partitions, communication rooms, a kitchen and other facilities already in situ.

It was not very long ago that office space was routinely stripped of all partitions and tenants fixtures for marketing purposes.

Why Was This?

The consensus used to be that office floors looked more attractive when empty. They were presented as “carte blanche” and new tenants were to be given the “opportunity” to start afresh. The in-going tenant would be able to design and erect their own partitions in order to meet their specific layout requirements. Another significant benefit of presenting an open plan space is that there are clear views of the windows, meaning that the all important natural light is maximised.

How Have Things Changed?

In current economic circumstances, knowledgeable tenants are searching for the opposite. They are targeting London office space that other tenants are seeking to offload, with the key consideration being that in today’s climate, they aim to secure it without the removal of partitions; before the space is returned to open plan.

Most tenants require an amount of open plan office space, but also need meeting rooms, directors offices, a board room, a small kitchen, a store and a communications room. To have these already in place can result in an immense saving.

At FindaLondonOffice, we recognise the value of this strategy and frequently help our clients to find space with the benefit of a good tenant fit out already in place, if ideal. Talk to us to find out more.

It is always very satisfying to be able to serve a client beyond their expectations and we love to hear back from them afterwards. While speaking to one of our clients, I realised how undervalued the importance of good communication is in this industry.

Gavin Ellwood of Ellwood and Atfield Ltd came to us with an ideal office space already in mind. The company had unfortunately been unable to secure a space in the development they were interested in. Their criteria deemed that they wanted to be close to Parliament, which narrowed the options considerably.

It turned out to be a miscommunication with regard to the lease terms that had led to their rejection. I was able to clarify this with the agent in charge and they were promptly accepted for the space that they had been told they could not have. The detail could have very easily been overlooked and they would have had to settle for an alternative, elongating the process and creating more frustration for all involved.

Gavin called me recently to ask a few questions and of course I was happy to offer my advice. During the conversation, I reflected on the fact that it was taking the time to uncover the facts that led us to success in his case.

The moral of the story, use an agent that knows how to listen and explore all avenues, rather than settling for second best. Communication is always important, but on such a large and important commitment, one must leave nothing overlooked.

We have recently received feedback that suggested it would be good to talk about how we operate in the blog. So here are our main objectives:

Offering comprehensive information

One of our foremost aims is to provide plenty of useful information on this site.

Working for you

When it comes to finding office space in London, we can take the whole job away and do it for you if you want us to.

Listening

We listen carefully to what it is you want – and also what you don’t want.

Providing you options

We can then use our database to check what’s out there and to check current availability. We have the market position to source options which have not yet come on to the market. We can compile a list of just about everything that’s available.

Efficiency

Based on what we’ve learnt from you, we can filter out the poor options – this can save so much of your time by not inspecting unsuitable office space. We arrange for you to see potentially suitable offices, at a time to suit you, and we come with you. We provide inspection checklists and will discuss and debate the various merits or otherwise with you, to try to help you compile a shortlist. We then help you hone it down to the preferred option, and hopefully will identify a back up choice with you.

Negotiation

We pride ourselves on our ability to negotiate and there are lots of different subjects apart from rent. Please see our post on negotiation.

At FindaLondonOffice, we make all of our costs transparent; the reason I feel this deserves to be in the blog, is because we have a unique reason for our pricing structure.  Many of our competitors charge a commission based on the overall price of the office space. This means that it is in their interest to get you the most expensive deal possible. If they negotiate a lower price for you, they get less commission!

At FindaLondonOffice, our charges are based on £1.00 per sq ft acquired in addition to:

• In the event of acquiring a new lease or underlease, 15% of the savings we are able to negotiate from quoting terms in the first year of the lease.
• In the event of acquiring an assignment of an existing lease, 15% of savings we are able to negotiate from quoting terms in the first year following lease assignment, to include any reduction negotiated on the assignors quoted premium.
• In the event of acquiring a freehold or long leasehold property, 15% of the savings negotiated from the quoting price. Examples of savings would be by way of rent free period, rental reduction, price reduction and capital payments and contributions in favour of the tenant / purchaser.
• VAT will be charged at the standard rate.

So as you can see, we cannot provide any better proof that we are commited to negotiating you the best deal than the fact the most of our fee comes from what we save you!

It might seem like a good idea to search for your own office space, but as I mentioned in the post regarding frequently asked questions, the process takes time. Although some people do succeed, there are many details to consider. Many companies seek advice as trying to do it can take an inordinate amount of time.

Why is it time consuming?

1. To get details of everything that’s available around Central London you would need to contact around 500 firms. That’s a lot of phone calls to make!
2. After you identify the offices that fit our requirements, how do you value them?
3. Can you identify the lease terms you need to negotiate? Having a good  understanding of current market conditions is key to securing the best deal.

At FindaLondonOffice, we have inside market knowledge and contacts, as well as access to databases that allow us to find London office spaces that have not yet hit the main market.

Without turning this into a sales pitch, I would like to point you towards the nature of comments we receive from our clients:

Their great strength from the standpoint of another professional is their diligence in <strong>getting the detail right</strong> – not something that I always come across in their competitors. They follow through on the process and I know when they are involved that the client will have all the back up needed.

Colin Cannings, Senior Partner, Cannings Connolly – Solicitors

This industry requires a meticulous work ethic.

We receive many queries regarding commercial property in London, to save you time we have put this list together.

With this post we will answer the most frequent questions, however if you require additional help, register to talk to one of our experts.

The questions include:

1. How Long Does it Take to Find a London Office?
2. Do London Offices Have Car Parking?
3. Should I Rent or Buy?
4. What Are Service Charges?
5. What Are Business Rates?
6. What Do I Need to Know About Security and London Buildings?
7. What is DDA and Who Pays It?
8. Is VAT Paid on Rent?

1. How Long Does it Take to Find a London Office?

• Longer than you may think
• 2 weeks to inspect what’s available
• 1 week to agree terms
• 4 weeks with the solicitors

But any of these elements can take longer which is why it is useful

2. Do London Offices Have Car Parking?

• Car parking is a rarity in Central London
• Insist on having car parking, and your choice of offices is limited
• Any car parking is expensive
• Say £3,000-£5,000 per annum plus rates, and then add the congestion charge!
• Offices with car parking can be found
• Most occupiers rely on the excellent communications in Central London

3. Should I Rent or Buy?

• Most companies rent
• Freeholds can be bought, but they are difficult to find.
• Own a freehold, and you may be on 5 floors; this may not suit
• Freeholds are a major capital commitment, however, buying a freehold can be a great investment.
• More info: freehold versus leasehold

4. What Are Service Charges?

• With your own self contained building, you operate it and you pay the bills.
• When you rent part of a building, you pay the landlord towards the running costs, i.e., heating, maintenance, commissionaire etc.

For more information, see the Service Charge Guide

5. What Are Business Rates?

• They are a property tax charged to the occupier by the local authority
• The cost can vary very widely; they can cost as much as £20 per sq ft a year

For more information, see our post on Business Rates

6. What do I Need to Know About Security and London Buildings?

• This can be very important to some companies
• Not all buildings have a good level of security at all
• Secure buildings tend to have higher service charges – you get what you pay for
• Options are a commissionaire, video entry, CCTV, card entry systems

7. What Is DDA and Who Pays It?

• This is the Disability Discrimination Act
• Buildings must comply

For more information on DDA

8. Is VAT Paid On Rent?

• Generally yes
• Most buildings are now VAT registered, so VAT is payable
• Some VAT free buildings can be sourced for those groups that cannot reclaim VAT, e.g. banks etc…but it’s difficult

Making the decision between conventional London office space and serviced office space largely comes down to leasing requirements and the timeframe that you have in mind. Freehold office space gives you total control, however it is a substantial investment to make. Leasehold is a lesser financial commitment, however it does mean that you cannot stay for as long as you like and are open to rent increases.

Here are some of the pros and cons of each option:

Serviced Offices Versus Conventional Offices

Serviced offices provide flexible short term leases:

• They are immediately ready to do business in
• Plenty of support services
• It is a bit like staying in a hotel really! However, they are more expensive

Conventional offices are ideal for the longer term:

• Take a lease for 3, 5 or 10 years
• Fit it out how you want it.
• The acquisition process is not instant
• You pay the rent, rates and service charge
• It generally costs a lot less

Rent or Buy

Freehold

• Owning a freehold gives you total physical control
• Owning a freehold largely gives you total financial control
• If you spend money on it, it’s your asset

Leasehold

• This gives you the opportunity to take space on 1 floor
• The financial commitment is much less
• You can leave at the end of the lease
• You usually have to return it to its initial condition
• You may not be able to stay for as long as you want
• You may have upward only rent increases

Hello,

Welcome to our new blog. With this tool we will provide you with a useful and informative resource to help you negotiate the London office minefield.

We would like your feedback to make our site a better resource and we invite your comments.

We will be exploring an array of issues, covering not only the happenings and intricate details of the London office space market, but also some rather more palletable ones(!)