Finding a room to put a few (or more) desks in should be simple. To us, it is - because it’s what we do every day, for clients of all sizes. But to you, our client, it can appear complicated.
There are so many ways to take an office space. Contracts can have an overwhelming level of clauses. The process can feel like having to make a million decisions about the size and trajectory of your business that you’d rather not pin down.
The office market is also changing. Traditional leases used to dominate, but the serviced and managed options popping up each month are providing much more flexibility.
The best place to start is to understand the different ways to secure office space. To make this simpler, we’ve laid out the common options.
What is a serviced office? The one with ultimate flexibility
Think minimal fuss. You’ll find a fully furnished office, probably with shared amenities, all handled by the provider. There will be a coffee waiting for you and your bins will be emptied.
Our team finds this option suits companies that might be growing fast or testing the water in a new market.
Typical size: 5-100 desks
Space per desk: 30-50 sq ft per person
Typical term length: 3-24 months
Licence or lease: Licence
What’s included in the price: Rent, business rates, service charge, utilities, maintenance and IT, desks, chairs and other furniture, any communal areas such as meeting rooms or phone booths
Anything not included: Some essentials such as printing, faster internet access or specialist IT
Remember to bring: Pot plants and the office dog
Deposit required: 2 months’ rent
How soon can you move in? Immediately. This is true plug and play
Expect to pay (notice this is a per desk cost):
In Soho and Fitzrovia, £640-£1,800 per desk
In Kings Cross, £650-£1,800 per desk
In Covent Garden, £650-£1,450 per desk
In Canary Wharf, £400-£900 per desk
In the City, £700-£1,300 per desk
Mayfair and St James’s, £750-£1,900 per desk
What is a managed office? The one with your own front door
Looks like a lease; smells like a lease, but a bit more flexible. A great solution for those who want a space to display their own brand and culture, but still prefer an operator to offer a layer of services.
With this option, the provider sorts the fit-out and configuration costs, but you might need to organise a few more elements than a serviced office.
Typical size: 20-500 desks
Space per desk: 50-70 sq ft per person
Typical term length: 1-3 years
Licence or lease: Either, and a few factors are at play. The pros of a licence: it doesn’t sit on a balance sheet (great for a business looking to be acquired), can be organised in 1-5 days, doesn’t create stamp duty land tax. The pro of a lease: it’s more secure (under a licence, you could be asked to move units)
What’s included in the price: Fit-out, configuration and all the essentials provided to a serviced office
Anything not included: Some services such as printing, faster internet access or specialist IT, possibly some additional branding for your space if it’s not included in the monthly charge
Remember to bring: Ideas for how to make it your own
Deposit required: 2-3 months’ rent
How soon can you move in? This depends; some are ready to go, but it you’re after a bespoke space you’ll need to wait a couple of months or so.
Expect to pay:
In Soho/Fitzrovia, £170-£320 per sq ft or £640-£1,700 per desk
In Kings Cross, £150-£300 per sq ft or £650-£1,700 per desk
In Covent Garden: £175-£270 per sq ft or £650-£1,350 per desk
In Canary Wharf, £120-£180 per sq ft or £400-£850 per desk
In the City, £140-£300 per sq ft or £700-£1,200 per desk
In Mayfair and St James’s, £180-£360 per sq ft or £750-£1,800 per desk
What is a traditional lease? The one where you’re in the driving seat
If you want to deal directly with the landlord, this is the one for you. It gives you full control over the space to configure it how you choose, but requires more heavy lifting in terms of bringing the elements together.
Most notably it’ll be down to your own team to organise the day-to-day running of the space, from cleaning to coffee orders. This option is best for those looking for control and who have certainty about how big an office you need.
Typical size: 50-50,000 desks
Space per desk: 80-100 sq ft per person
Typical term length: 3-15 years; often occupiers build in a break clause after 3 or 5 years to give some flexibility
Licence or lease: Lease
What’s included in the price: Only the rent. Landlords often include “rent free” periods at the beginning of the term as a financial incentive that can cover fit-out costs
Anything not included: Everything else; you’ll need to factor in business rates, service charge and all other elements on top. This includes set up costs such as fit out, legal costs, a broker fee (typically 10% of the first year’s rent) and stamp duty land tax if yearly rent is more than £150,000
Remember to bring: Furniture, branding, a great coffee machine and everything else you need to turn a blank page into your own workspace
Deposit required: 6-12 months’ rent. Bear in mind at the end of the lease you’ll need to budget for dilapidations - putting the office back into the state it was in before you leased it - at about £20-25 per sq ft
How soon can you move in? Be patient - a few months, depending on your fit out and IT requirements
Expect to pay:
In Soho/Fitzrovia, £70-£200 per sq ft
In Kings Cross, £60-£120 per sq ft
In Covent Garden, £60-£130 per sq ft
In Canary Wharf, £43-£80 per sq ft
In the City, £75-£190 per sq ft
In Mayfair & St James’s, £70-£250 per sq ft