The most frequently asked questions about finding and acquiring London office space can be found here…
- What do I need to know before looking for office space in London?
- How do office rental costs vary across London?
- What is a Serviced Office?
- What type of companies use Serviced Offices?
- What is a Workstation?
- What services are provided in a Serviced Office?
- What is included in the rental price of a Serviced Office?
- Are there any additional costs when renting a Serviced Office?
- How are license fees calculated for Serviced Offices?
- How long are serviced office lease contracts?
- Apart from rent, what other conventional office costs to I need to be aware of, and are they negotiable?
- What do I need to know about business rates?
- If I rent more London office space, can I expect a discount?
- Is there an option to have a permanent space with flexible leases which are not serviced office spaces?
There are 5 questions you should ask yourself before you start a search for office space:
- Location: Where do your new offices need to be?
- Budget: How much do you want to spend?
- Space: How much do you need, and what type of office space do you need?
- Flexibility: How much control do you need over your office space?
- Timescales: When do you need to move into your new offices?
If you want a more detailed anser, we have an excellent 5 part blog about preparing to look for a new London officesBack to top
Rental Costs vary tremendously across London. The most expensive office space can be found in the West End – Mayfair and St.James’s. And the cheapest per square foot is currently Clerkenwell and the City Fringes in East London (although this may change, given the regeneration project surrounding the 2012 Olympics, and government-backed initiatives like Tech City, which has seen an explosion of new start-ups in the area) – We have a comprehensive rental guide detailing costs for the major London commercial districts.Back to top
This is a common question, as serviced offices can also be referred to as managed offices, business centres or executive centres. Each is defined as an office suite or office building that is fully equipped and managed by a facility management company. Serviced offices offer short-term, flexible contracts, which allow tenants to expand, contract, or relocate at short notice. In simple terms, serviced offices are a cost-effective total solution to your business space needs.Back to top
Serviced offices are used by a vast range of businesses in different industry sectors, from single person companies, to well-established, large corporations. Some of the most common businesses that rent serviced office space include start-ups, SMEs, and companies needing temporary or highly flexible space.Back to top
Commonly known as a desk, a workstation is the amount of space typically allocated to one person/tenant/employee. Usually, a single workstation will include a desk, chair and telephone, with the option to include further facilities to suit specific requirements.Back to top
Serviced offices provide companies with a professional business address, in a city or district location around the world. Tenants have instant access to their office space, which usually comes fully furnished, and fully equipped. 24 hour access and security is provided, with the option to hire meeting and conference rooms on a pay-as-you-go basis.Back to top
In most cases, the rental price per month is inclusive of rent, business rates, service charge, electricity, heating and air conditioning. Also included is furniture, telephone systems and shared use of WC and kitchen facilities.Back to top
There are additional facilities that tenants can have access to at a pay-as-you-go rate. These include meeting and conference rooms, along with extra charges incurred for faxing, printing, photocopying and telephone bills. However, some brokers and operators offer different packages that may include these facilities within the price per month.Back to top
Most providers charge on a per desk (or workstation) per month basis. Typically, workstations occupy 50 – 85 ft2 of space.Back to top
Serviced offices offer highly flexible lease terms, ranging from one month, to one year – each can be easily extended or contracted if the tenant requires. Alternatively, licenses can work on an easy in, easy out basis, meaning serviced offices take tenants on a month to month agreement. There are even some centres that allow office space to be rented for 24hours.Back to top
Apart from rent, what other conventional office costs to I need to be aware of, and are they negotiable?
Unfortunately, the cost of renting conventional office space in London includes the following: Rent, Business Rates, Service Charges, Dilapidations, Covenant, Rent Deposit, Solicitors, Fit-Out, IT and Telecoms, Removals. All costs are negotiable (except business rates, and even they can be challenged through an appeal process).Back to top
Business rates are a tax on business occupiers fixed by the Government (HM Revenue & Customs) and collected by the Local Authority. With serviced offices, rates are usually included as part of the rent. With conventional office space, it’s a separate payment. However rateable value is reviewed every 5 years, and can be challenged through an appeal process. Rating advisors normally charge on success, so if there is no saving there will be NO FEE! More about business rates here…Back to top
Very hard to answer the question without more specific information.
Overall, I suspect there would be a discount and this may well manifest itself as a longer rent free period at lease commencement of the larger property.Back to top
Is there an option to have a permanent space with flexible leases which are not serviced office spaces?
Unfortunately this is very rare indeed. It can happen when the buildings are old and likely to be redeveloped, and the landlord wants the space let in the meantime. However this is unusual. Ideally, a landlord wants office space let for the long term, in order to keep the investment value up. If tenants come and go every 5 minutes, this makes a lot of work for the landlord. Serviced office providers will set up the office space, furnish it and then charge the tenant for the privilege. Permanent space has to be fitted out to suit the occupier – for the occupier to spend that sort of money and then leave after a year would send any accountant into a tailspin!Back to top