If you’re looking for new office space it’s usually for one of three reasons.
- You’re a new business looking for your first premises
- Your business is growing and you need to move out of your home office or smaller office space.
- You’re unhappy with your current office and want somewhere new
Looking for a new office can be a somewhat overwhelming task. You might find yourself looking at a lot of square grey rooms inside uninspiring buildings. Leaving you uninspired and struggling to decode contracts, leaseholds and sqm costings.
It doesn’t need to be that way
There is a new wave of exciting and inspiring office developments which offer so much more than a space to put your desk.
These workspaces are often beautiful, design-led, inspiring places where you and your staff will enjoy coming to work. And there is not a hint of a grey box in sight.
These spaces typically offer meeting rooms, break out areas with coffee machines and co-working. Interesting and appealing reception areas and modern office design.
The best way to navigate the world of office listings is to know what you want before you start.
Office rental falls into two distinct categories; Serviced & Un-serviced.
Here you can find out the difference between the two, the pro’s and con’s and crucially what the cost implications are.
What is a Leased (un-serviced) office
Leased office space involves renting directly from a building’s landlord on a price per square foot, per annum basis. It usually requires the leaser to sign a contract of between three to ten years and a substantial deposit.
Businesses who take out a leased office are then in complete control of the appearance, configuration and working practices of their space.
- Longer leases mean businesses will be able to predict their requirements over the longer term.
- Businesses who want full control over the branding of their space will be able to strengthen their brand identity.
- The decision to design and control how the workspace is designed.
- The possibility of lower long-term costs and overheads.
- For businesses that can commit to longer terms, a conventional lease can work really well.
- Businesses are fully in control of the premises allowing the freedom to evolve and diversify.
- Finalising a contract takes much longer than a serviced office.
- Substantial cost to furnish and implement communication infrastructure.
- Capital expenditure for reinstatement at lease end.
- Staff required for building management i.e. receptionist.
- Responsibility for office service charges, business rates and utilities.
- The commitment to a longer lease requires an accurate profit forecast growth.
- For newly established businesses a substantial deposit is usually required to offset the default risk.
What is a serviced office
A serviced office is an office space or building which is fully equipped and managed by a management company/office provider.
The office provider then rents individual offices, studios or floors to other companies.
Facilities in serviced offices usually include a staffed reception desk, meeting rooms and networking spaces. Kitchens and lunch areas and cleaning and maintenance services. Other services are also available on a pay-as-you-use basis. eg.printing and email/postal management.
The monthly cost is inclusive of absolutely everything, so there are no unexpected bills to catch you out.
- Low initial costs and fast sign-up.
- The option to sign up for a short-term lease.
- Fully furnished with communication infrastructure in place, which allows you to get started immediately.
- Plug-in and go.
- Hassle-free management of utilities, cleaning visitors etc.
- A simple, single price cost. No extra bills or charges.
- The opportunity to network with other businesses in the building and utilise break-out areas and meeting rooms.
- Reception area to greet your visitors and manage calls.
- A ready-made interesting and bustling working environment with facilities such as co-working and break-out areas.
- Aside from décor inside your workspace, there isn’t as much opportunity to establish a brand identity.
- There isn’t as much scope for businesses requiring unique working environments.
- Businesses with multiple visitors a day may find it inconvenient.
- There aren’t as many opportunities to pay a lower rate for a long-term lease – you may be paying unnecessarily for flexibility which you don’t need.
How much do Leased and Serviced Offices cost?
The costs of renting offices vary enormously for different areas of the country and will depend on the space and amenities.
The costs can be broken down into price per sqm or by the number of workstations required.
In 2018 the average monthly cost in the North of England was £300-£400 per workstation.
If you compare the costs, priced per square foot, leased office space will be slightly cheaper than serviced offices. However, these costs do not include many of the hidden costs associated with conventional offices.
Aside from the huge initial cost of furnishings and fit-out and IT and telephone infrastructure, leased offices can have hefty monthly bills. Utilities such as wifi, telephone lines and water, electricity and gas are all payable as extras. Upon signing a contract you will also need to pay fees for a solicitor and a commercial agent.
A serviced office will certainly appear more expensive at first glance. Simply because it is priced per desk per month, rather than per square foot. However, it’s important to remember that this price is fully inclusive of most costs associated with the office.
And aside from a deposit, there are no upfront fees.
Not only do serviced offices usually work-out to be the cheapest option, but they also offer so much more than just office space.
Therefore, many businesses in serviced offices really benefit from the ability to work alongside and network with many others. This often brings about a collaborative style of working. Encouraging networking and business partnerships.
Serviced office providers like W_RKSPACE really pride themselves on creating spaces that businesses can call home.
Spaces like Hamill House really allow businesses to flourish and expand in a community that grows together. The right workspace will help you attract the right clients and create lasting business partnerships. Both of these things are crucial in allowing your business to develop and grow.
If a serviced office at Hamill House sounds perfect for you get in touch with our friendly team.
With thriving centres in Preston and Bolton now is the perfect time to become a part of the community.