Written by Nick Donnelly.
In previous blogs, we have covered why the serviced office industry is one of the fastest growing sectors in the European property market. Since the recession, many businesses have decided to use them because of their cost efficiency, flexibility and practicality. Serviced offices have become the answer for a lot of new and emerging businesses that don’t have the budget to support taking space in a conventional office. Serviced offices provide a solution to this problem, allowing businesses of any size to establish their presence in the capital.
A “serviced” office basically means that everything is ready to go as soon as you move in, so you can hit the ground running, rather than spending time installing WiFi and kitting out the office with furniture.
The UK Chartered Institute of Purchasing state that businesses who set themselves up in a serviced offices will often reduce costs by up to 78%. Even so, when you first look at the costs of a London serviced office, it may look higher in comparison to a conventional office space.
However, there are usually no additional expenses in a such as heating/air conditioning, electricity, security and maintenance. You will come across additional costs for using any extra facilities in a serviced offices, which vary depending on the operator and location. In most circumstances, you will only ever be charged as and when you use these additional facilities.
The costs of a London serviced office can vary significantly depending on the square footage of the space or by how many desks your business requires. The lower end of the scale starts around £250 per desk per month in areas such as Brixton and Chiswick. The higher end of the scale starts around £650 per desk per month, in areas such as Knightsbridge and Notting Hill.
Most serviced offices do require a deposit to cover service charges, which will be refunded upon termination. Many now accept debit and credit cards to pay for your occupation in a similar way to hotel charges. Deposits generally add up to one or two months’ rent, if rented for longer than three months. A typical length of termination notice is just 28 days.
If you used a broker to find space in a London serviced office, then usually these fees are paid by the serviced office provider.
Some costs that are not relevant are business rates, local authority charges for services, insurance, repairs and maintenance, running costs, EPC and SDLT.
Finding a London serviced office couldn’t be simpler with Hubble; our marketplace has some of the best spaces across London from all the biggest and best providers. Simply enter the area you are looking in, set your budget and you’re away!