I’ve outgrown my incubator – where should I move?
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
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.
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.
Simplicity – far simpler in format reducing the time needed to be up and running.
Cost Certainty – a single fee will be charged per work station, with additional charges for extra services levied on your specific requirements.
But…
Lack of identity – most serviced office providers will fit the space out in a uniform fashion to suit varying tastes.
Lack of Choice – when compared to leasehold premises, there is a smaller choice available on the market.
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
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.
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.
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.
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…
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.
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.
