Rather than simply naming a cost per square foot, our clients prefer to understand the full breakdown of what is needed to pay for their London office space.
Ultimately, rent constitutes the largest cost, however it is important not to overlook the other reoccuring costs and of course the initial sums involved.
At FindaLondonOffice, we aim to make all costs as lucid as possible to make matters simpler for our clients.
In this post, we will systematically answer the 6 main questions we receive regarding costs:
- How Much Are Office Rents In London?
- What Are Recurring Costs Involved In Renting A London Office?
- What Are One Off Costs Involved In Renting A London Office?
- What Are Business Rates?
- Is VAT Paid On Rent?
- What If I Have An Existing Office?
1. How Much Are Office Rents in London?
These vary widely dependant on location and type. For more information see our rental guide.
2. What Are Recurring Costs Involved in Renting a London Office?
The main property costs are rent, rates and service charges.
3. What Are One Off Costs Involved in Renting a London Office?
- Fit out costs
- I.T. and data expenditure
- Removal costs
- Legal costs
- Stamp duty
- Surveyors fees
- Other services engaged
4. 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.
5. 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, but this is difficult.
6. What if I Have an Existing Office?
The trick is to minimise any duplication of cost.
For more information on disposal of space, talk to us.
About Ian Kitchener
Ian graduated from Keele university with a degree in Philosophy, Politics and Economics and went on to obtain a Post Graduate diploma in Property Valuation and Law from (London) City University. He has advised Central London office occupiers for over 20 years. He loves fighting their corner and making sure they get what they need - a great office on the best commercial terms available. Ian feels that www.FindaLondonOffice.co.uk have identified a real gap in the market - to find the perfect office and then provide expert advice on the commercial negotiations against often very canny landlords. The speed and skill with which the FindaLondonOffice team do this can often make a significant contribution to their clients profitability. Ian lives in North London with his wife and 3 young children. Read more about Ian Kitchener.
