How much does office space in London cost?
A recent news item in Business Matters Magazine examined 'How much does office space in London cost'? It's a good article and raises some valid points - but it also made me think how valuable our services as professional office brokers, are to clients looking to move premises AND SAVE money.
If you were to decide to build a house extension, you’d seek the professional services of an architect.
If you were looking to invest a sum of money, you’d seek the professional services of a financial advisor.
So, if you want/need to move offices doesn’t it make sense to seek the services of a professional office broker? Office brokers have a wealth of experience negotiating deals, knowing which offices offer best value for money and more importantly ensuring you get what you pay for at the best possible cost.
Yes, London rents are some of the highest in the country however you can still secure some great deals. Points I always check with my clients include; How much actual space do you need? Being money conscious I don’t want my clients to pay for unnecessary space – you can always ‘grow’ if need be. What amenities do you want? Some amenities are very nice, but do you really need ‘luxury’ amenities and will you really use them? Why pay for a rooftop garden or gym or parking if they aren’t going to be used? Where do you want to be located? Do you really need Central London where rents can be three of four times higher than elsewhere?
Of course, you need to be in an accessible location with great connections for your staff but how about somewhere outside on the tube/train line? Maybe the City or even moving a few miles further out to Greater London? There are some amazing bargain spaces if you decide that is a possibility. I appreciate some businesses need to be smack bang in the middle of London and others need tip top luxury offices in prime locations to impress clients, but do you?
I always try to secure a rent-free period for my clients – many providers are keen to let their space and will ‘outbid’ each other to secure a deal by offering these rent-free periods! Experienced office brokers with good relationships with office providers will undoubtedly secure the best deal possible for you. And better still our services are completely FREE to clients. We are totally impartial and work solely for our clients – we get paid a fee by the office provider.
Serviced offices usually work out considerably cheaper than you think. From my 20+ years of experience, a conventional fixed lease office has so many hidden extra expenses that you just cannot even begin to envisage the cost in the immediate future, let alone the long term.
In my opinion serviced office benefits far outweigh conventional lease office space. Not only in cost but also in benefits. They are already prepared for you to move in and work with Wi-Fi and furniture and equipment already installed. There are no extra charges for repairs, electricity, security, cleaning etc. All you and your staff have to do is arrive and start work immediately whilst you pay a fixed amount of rent each month – no nasty surprises. So, while serviced offices may seem more expensive at first, it is important to understand that they come without any additional costs.
Conventional offices are cheaper initially but have many unforeseen costs that are not included in the price. These costs can mount up very quickly causing real stress and worry, especially for smaller to midsize businesses.
What’s your experience with leasing/renting office space? I’d be interested to hear from you.