Renting office space in London can be a daunting prospect. Your office embodies the brand, personality, and values of your business. It represents and reflects the core of what a business does and stands for, a tangible hub for customers, which means it is important for businesses to choose wisely.
This is particularly true for start-up businesses, where the budget may be tight and the type of office space they choose can be a huge factor in whether they are successful long-term or not.
There are many positive reasons to rent a London serviced office space; however, key aspects need to be considered before businesses embark on an office search in London.
For example, the space size, location, and cost are the typical areas that need to be considered. But what else should be factored into the decision-making process?
We have put together a list of key areas that businesses should think about before they start searching for their new office space.
The first thing to think about when looking at renting a new office space is your ideal location. Acquiring a certain location in London may be a mandatory requirement for some businesses.
For example, depending on your business, you may feel it is necessary to be located near your competitors or to be in the centre of the city. On the other hand, you may want an office in a location according to its atmosphere.
Old Street, situated within the Shoreditch district, is regarded as the creative hub of London. The number of tech businesses in the area is rapidly building, particularly with innovative start-up companies, turning Shoreditch into a technology powerhouse.
There are plenty of boutiques and high-end stores to shop at during the day, and at night, there is an array of bars and trendy clubs, making this a popular area for young, driven, and creative professionals.
Additionally, the transport links for Old Street and Shoreditch make commuting easy, with Old Street Station and Shoreditch High Street Station nearby.
To find out more about renting an office in this location, see our Shoreditch and Old Street Area Guide
Regardless of the area that you decide is right for your business, you will need to consider transport links, thinking about how your employees and customers will travel to the location.
For example, DeVono have serviced office spaces to rent in Covent Garden, which is a 5-minute walk to Leicester Square and Charing Cross. See our Covent Garden Area Guide to find out more.
Additionally, many people cycle around London, particularly when travelling to work, so bike storage may be an essential thing you need to consider.
Thinking about the above, there are certain questions you should ask before renting an office. For example, you should find out if the office building has bike storage and shower facilities.
Alternatively, there may be parking available on the main street that is associated with the office building, so this is worth finding out.
If you have decided on where you would like your business to be located, then begin your search for office rentals in London.
The next thing businesses should consider before renting an office is the amount of space they will need: too much space can increase costs unnecessarily; too little can affect employees’ productivity.
Start-up businesses need to understand their plans for the future, such as whether they will be hiring and expanding the team, as this can impact their space requirements.
Rather than moving to a different office space, it may work out to be much more cost-effective to hire a bigger-than-necessary space for the time being if a business knows that it will be expanding its team in the future. Plus, moving a business may impact the happiness of its employees and there will be an Office Relocation Checklist to consider.
If you are asking yourself, ‘how much office space will I need?’, then an Office Space Calculator can help you make an informed decision.
Before agreeing to rent an office space you should find out who will be responsible for any repairs that need to be done as and when they crop up.
If it is the office owner’s responsibility to handle repairs, then you should ascertain whether there will be an extra cost for this service.
On the other hand, if you would be the one responsible for the office repairs, then you need to find out if this has impacted the monthly amount you will need to pay, i.e. you should check for any hidden costs.
Whilst we are on the subject of hidden costs, it is important for you to understand the full breakdown of your rent to know exactly what you are paying for. This understanding is vital for you to make an informed decision as to whether you can realistically afford the office space.
Ask yourself, is the cost of the office space within your office-renting budget? Can you afford to pay an upfront deposit? How does the price compare to that of other offices of a similar size?
If the office space is beyond what you can afford, then you may need to consider expanding your search to encompass different locations.
However, whilst there are areas of London that will be cheaper to rent in than others, you should consider whether a particular location is imperative to the success of your business. A cheaper office in a less desirable location may be more affordable in the short term, but it may harm your business long term.
To get an idea of the price differences of offices in various locations, then start your search for office spaces in London, applying different filters to find the best price for you.
When you decide to leave your office space, there will typically be some fees associated with restoring the space to its pre-lease state.
Additionally, if a landlord decides that the office space has been mistreated, either during or at the end of your lease period, then they may make a dilapidation claim. They may also make a claim if they feel that repairs have not been maintained.
DeVono can help with Dilapidation Negotiation, agreeing on the cost of the repairs with you and your landlord, which is then followed by either you carrying out the work needed or paying the landlord the costs that are involved.
We hope this blog has helped you to understand the aspects you need to consider before renting an office space for your business. If you would like assistance with your London office space search, then DeVono offers an advisory service to help create a bespoke real estate strategy.