Imagine this: you’ve just found your dream office. The postcode is great for your sector and will elevate your brand, you’d be located close to your clients, and the space is well-connected, meaning an easier commute for your team. You’re super excited about finding the perfect fit! The only issue is the price tag…
Or is it…? Last year the average business searching for an office on HubbleHQ, got a shiny new space for 15% less than the amount listed online. 15%!
What does this prove? There’s always room for negotiating on price. Generally speaking, you shouldn’t take the asking price or proposed license fee at face value. Here are several factors that may give you room to negotiate a better price on your office.
Not sure what kind of budget to allocate to your new office in the first place? Use our calculator to get an estimate in the click of a button. Magic.
Circumstances
When negotiating your contract, there may be certain circumstances that are in your favour. For example, if the office has been available on the market for some time, it’s more likely that the office provider will accept a lower bid, so make sure to ask either your office provider or Tenant Advisor for such details.
Our Office Alchemists (Tenant Advisors) will guide you through the whole process from start to finish and are on side to negotiate terms.
Length of contract
The length of your contract also plays a role when negotiating rental prices. Signing a longer licence will increase your chance of securing a discount. It is worth asking the office provider for price proposals based on three, six, twelve and twenty-four months. You can then use this information and compare it against your perceived team growth within the given periods of time.
Is your headcount doubling in size year on year? Here’s how to find an office when you’re scaling up FAST.
Office size
The size of the office in square foot or in desk numbers will also play a crucial role in securing a discount. The larger the office, the more leverage you will have when it comes to negotiating rates. If you’re planning to stay in your space for a longer period of time and either already have a large team or are forecasting high growth, it may be worth booking a larger office for a longer period of time to save on overall costs.
What facilities are included?
Make sure to also consider the amenities the office space provides. Does it have 24-hour access? A gym? Free beer? Do you have to pay extra for meeting rooms or can you book them for free and at will? The cost of such amenities may seem small upfront, but over time, they do add up so it’s worth adding this as a factor in your negotiations. Sometimes, private office providers may not be so keen on making significant rental price reductions but are happy to provide benefits instead.
You can filter your office search on our platform, by selecting all the amenities you require.
Have a shortlist of choices
It is important to be educated about the market to make the best choice for your business and your team. Our Office Alchemists recommend viewing at least four offices before making a decision. This is advised to ensure that you not only find the perfect office to grow your business in but also that you have a better likelihood of securing a reduction in rates. The best way to do this is to work with an agent or broker who have built relationships within the office sector. HubbleHQ, for example, have a dedicated team of Tenant Advisors who will send office recommendations, attend viewings, provide support and guidance but most importantly will help negotiate rental fees.
The best way to create a shortlist of offices is either to browse the largest online inventory of flexible office space in London.
If you have any questions about the negotiation process, get in touch with a HubbleHQ Tenant Advisor. Our team don’t work on commissions, so you can be confident that we’ll do everything in our power to secure the best deal for you.
