You have two main options for consideration, we have outlined below some of the pros and cons:-
1) serviced offices or
2) conventional lease.
Serviced Offices
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Limited upfront costs – a fully fitted suite will be provided including furniture for the number of staff required so limited upfront costs on fitting out.
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Flexible – a licence will be on a flexible basis typically from 3 months upwards allowing you the ability to grow or contract depending on your business needs.
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Simplicity – far simpler in format reducing the time needed to be up and running.
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Cost Certainty – a single fee will be charged per work station, with additional charges for extra services levied on your specific requirements.
But…
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Lack of identity – most serviced office providers will fit the space out in a uniform fashion to suit varying tastes.
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Lack of Choice – when compared to leasehold premises, there is a smaller choice available on the market.
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Expensive – in comparison to leasehold premises, serviced offices can work out to be more expensive especially the larger the space taken and the longer the term.
Leasehold Offices
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Greater choice – a wider selection of space in terms of size, quality and location. This will allow the occupier to choose the most suitable office for their business needs.
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Autonomy in use and design of space – a lease agreement will allow the ingoing tenant to fit-out their space to their own personal taste and specification.
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Create a brand identity (by marketing the address and fitting out the space) – greater branding opportunities may be available both internally and externally increasing your company’s profile.
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More economical – leasehold accommodation should work out more economical in the long run. A rent free period will be granted to the tenant in most circumstances.
But…
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Longer term commitment – lease length will vary on the size of the space and building to building but typical lease lengths for sub 5,000 sq ft accommodation will be between 3-5 years.
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Variable Costs – although a rent will be agreed from lease commencement, there are other items of expenditure which can vary over the term, to include service charge, rates, utilities, rent review (normally every 5 years) and dilapidations liability at the expiry of the lease.