How much does a serviced office cost?
When looking for office space in London – what are the main things to keep in mind?
These are all important things, for sure – but there’s one consideration (probably right at the top of your list) that carries more significance than anything else – and that’s price.
How much does a serviced office actually cost – and is it within budget?
Unfortunately, you’re not likely to know the answer to this question until you start doing your homework, and getting a feel for what rates are available for the type of office space you need.
That being said, there are a few things that impact the cost of a serviced office in London – and it’s definitely useful to gather an understanding of these factors before you start shopping around.
Below, we’ve listed some of the factors that influence cost – as well as the different reasons why a serviced office could save you money in the long-term.
How does location impact serviced office costs in London?
The first thing that impacts the cost of a serviced office in London is location.
You’d probably be forgiven for assuming that rates for office space in Central London are all relatively similar.
This is fairly accurate in some respects, but when comparing a number of similar-sized offices across different parts of the city – it’s likely that you’ll see some variance.
Beyond the obvious things like size of building and quality of facilities, locational price fluctuations are usually influenced by transport links, proximity to shops, bars and cafes – as well as high demand.
For example, in areas where there is more demand for office space per square foot, the rent is likely to be higher. This is usually the case for areas which are highly populated by certain industries – whether that’s advertising, technology, media, etc.
Again, the extent to which location impacts cost is difficult to define, but it’s always worth bearing this in mind when exploring different areas to ‘set up shop’ as it were…
How serviced office rental can save you money
If you’re still in the early stages of searching for office space, you might still be weighing up whether to go for a serviced office or down the more traditional route – with a long-term lease.
Both have their own benefits – but from a cost perspective, you’re arguably more likely to save money through a serviced office rental.
Here are some of the main reasons why…
Business rates are included in monthly fee
When you rent a traditional leased office, business rates are subject to change depending on the valuation of the building. On the other hand, with a serviced office, business rates are usually fixed – and the fee is absorbed into your monthly rent.
This is obviously much more cost effective for you as a business.
The right size office
Serviced office contracts are normally drawn up on the basis that you only pay for the desk space as opposed to everything else.
For example, with a traditional leased office option – it’s harder to get the exact size of office you need, as you’re at the mercy of the lease company. Their package will include the whole building (or a floor/section) – which might be too much space, or even too little. With a serviced office, you literally only need to pay for the size of office you need.
Room to grow
Equally, if you ever need to buy more space to account for a growth in people – it’s much easier to do so with a serviced office.
If you’re tied into a traditional lease, and you outgrow the office you’re in – the likelihood is that you’ll need to enter into another separate lease to house the growing number of employees.
No unexpected costs
With a serviced office rental, you won’t need to watch out for any unpleasant surprises at the end of the month – like additional agent fees, maintenance costs or variable business rates (as mentioned above).
Everything is included in your monthly fee when you sign a flexible serviced office contract, so it’s much more transparent from a cost perspective – and you’ll always know exactly where you stand.
How much does rent cost for a small business?
Again, the monthly rent will vary depending on who you sign a contract with – as well as the location of the office space itself.
However, if you classify yourself as a small business – in most cases, serviced office rental will usually always be cheaper than a traditional lease.
This is because you’re likely to pay for more than you actually need when you enter into a traditional lease, especially if you’re a smaller business – with less than 25 employees.
How do you calculate office space rent?
Broadly speaking, rent for office space is calculated based on three main elements:
- Number of people/employees
- Length of contract
Of course, there may be other things that have a bearing on how rent is calculated depending on which serviced office provider you go with – but these are the main ones to consider.
Depending on your budget, you can usually work out the type of location that you could afford – taking into account the number of people moving into the office and the length of contract.
WorkPad office costs
Our boutique offices are perfect for businesses of all sizes and our contracts are flexible, with a 3 month minimum term inclusive of business rates, utilities, internet connection meeting room usage and much more.
If you’d like to discuss our contracts, or enquire about availability – we’d love to hear from you.
Get in touch today and we’ll try our best to answer any questions.