Congratulations on reaching this stage in your journey! You are now considering renting your first office space in London without straining your budget. Beyond just the rent, it’s important to account for other associated costs when occupying an office in the city. This guide will help you find and rent cheap office space in London.
Finding the perfect office space in London can be a time-consuming and stressful process. Should you hire an agent to negotiate a lease for an office or use a broker to simply rent an office? To make a proper comparison, it’s important to understand the costs associated with each option. Fortunately, with our quick guide to finding and renting office space in London, you’ll be able to locate the ideal workspace for your business in no time.
Location, Location, Location
When searching for available office space in London, it is important to identify the areas you want to focus on and the rental terms that suit your business needs. Consider the nearby transportation links. Renting a workspace close to public transport hubs, such as train stations and bus stops, can significantly reduce commuting times.
Setting Your Price Range & Budget
You should also know how much you can afford to pay in rent each month and the type of lease you want. When researching potential workspaces, make sure to find out all this information before moving forward with any decisions. When it comes to renting office space, it’s essential to decide on a price range and budget for rental costs. This should be based on the size of the office needed and the type of lease you’re looking for. Short-term leases tend to cost more than long-term leases, yet provide more flexibility.
Future Proofing Your Office Space Design
As you start looking for cheap office space in London, it’s important to think about the type of workspace that would best suit your business. This could include an open-plan desk area; private, lockable offices; a meeting room or breakout areas. Consider how much workspace you need and if there will be any specific requirements, such as disabled access or ample storage facilities. You should also think about the available amenities in the surrounding area—such as cafés and restaurants—that can benefit staff morale and help attract talent.
Thinking ahead, what are the growth plans for the business? If your business is seasonal or staffing levels fluctuate, then you don’t want to be paying for space that you do not use. Serviced office space is great for this very reason for two reasons:
The licence agreement when renting a serviced office is flexible and can be anything from three months to 3 years, so you are not tied in the long term.
If your team outgrow the space, you generally can take on additional space within the business centre. All you need to do is speak to the centre manager and discuss your plans. The same scenario is slightly different when it comes to leasehold office space as the term of the contract tends to be longer (3 to 10 years, with a break clause, halfway through is normal), which makes it harder to design the space to allow for fluctuating staffing levels.
Are Business Rates Included?
Working out business rates can be tricky as they vary from borough to borough. Business rates are calculated by multiplying your rental cost (rateable value) by a multiplier. Luckily, the UK government website has a handy business rate calculator that you can use. Business rates are included in the monthly cost of serviced offices, whereas you will need to factor these in (and be responsible for organising and payment) if you want to lease an office.
Factoring in the Cost of Utilities
As mentioned above, all utilities are generally included in the monthly cost of service offices. If you opt to lease an office, you’ll be responsible for setting up and paying for electricity, gas, water, ADSL/Fibre internet including failover) connections and phone lines. To avoid any hidden costs, consider an all-inclusive office space and ensure the office space remains cost-effective.
Rent vs Buying Office Furniture
If you have ever needed to buy new office furniture, you know how expensive it can be (and how difficult it can be to shift once it is no longer needed). This is the reason that furniture is treated as a commodity and has very little resalable value at the end of its term. Many find themselves either giving the furniture away for free or paying for storage to house desks and chairs that will probably never be used again! The good news is that serviced offices tend to be fully furnished, meaning all you need to do is bring along your IT, and you are good to go. Chairs, desk,s cabinets, coat stands. Most are available;e, simply ask the building manager if you want to remove or add additional furniture, and they will generally be able to accommodate this for you without charge.
The Unnamed Extras
Access to meeting rooms and breakout spaces is available and can form a part of your monthly payment. Teas and coffees, free breakfast, beer and pizza and networking events need to be factored in. Whereas in a leasehold office, you need to build in additional sq. ft regardless of whether it’s used 24/7 or simply a transition space such as a toilet. Maintenance and upkeep are either your responsibility (leasehold) or the service providers’ (managed or serviced office space).
View Office Space Before Negotiation
Once you have a good idea of the location, cost, size and amenities of how you want the office to function, it’s time to start discussing terms with potential office owners. Make sure to negotiate rental terms and secure rental paperwork as soon as possible so nothing delays your transition into a new workspace.
Where Can I Find Cheap Office Space?
If you need help navigating the London office market, our team is here to help you. With expert on-hand guidance, we’ll take you through the different options available and work with you to secure the best space for your budget.
For more information, contact us or call 020 3838 2008, and we’ll help you find your perfect space on a budget that suits you.