If the big drive in your move isn’t more space to grow, moving closer to your biggest clients, or getting in a “better” location (whatever that means to you and your business), it’s likely you’re looking to get a better deal than you’re on right now. In London, the prices vary significantly from one area to another, and it may be possible for you to explore more affordable areas without compromising accessibility or prestige. By looking at our Market Rent Guides, you can compare and contrast the average cost for offices around London and see if you are currently getting the best deal.
In London, the cheapest areas to rent office space tend to be in Zone 2, so you may be tempted to look for options around Hammersmith or Camden
If staying more central is vital for your business, sometimes a light change, instead of a drastic one can be a good tactic. Companies in Soho often look to areas like Holborn as an example. The rents are around 20% cheaper and the business rates are also lower.
Navigating London Office Space Costs
After the move towards hybrid/ remote working, you may be paying for more space than you require. Downsizing or reconfiguring your office can lead to cost reductions for rent, utilities, and maintenance. Reassessing how many people are in the office and embracing a collaborative workspace may show that you can lose a few desks and cut back on costs.
Whilst many businesses are still operating on this model, we’re seeing more and more businesses asking staff to come back in full-time. And it’s not uncommon for us to look at minimising costs whilst maximising the available desks. Often in this situation, we look at more flexible office spaces that offer multi-functional spaces to grow with you.
A good example of this would be a managed office from provider like Metspace.
Optimising Office Space for Hybrid Work
In 2023 there’s a huge variety of offices you could take. Moving to a different office type could save you money in the long run or avoid additional monthly costs.
If you are an established company in a serviced office, considering a leasehold move may be the best financial option for your business. As leasehold agreements typically offer long-term commitments, it allows you to secure more favourable lease terms and reduce monthly rent prices. Unlike serviced offices, where you usually pay a bundled price for services, for leasehold spaces, you can negotiate your prices and spread your costs across a longer term.
If you are in a managed office space, switching to leasehold or serviced options could significantly cut your costs. In managed space, you pay a premium fee for your bundled services and convenient facilities. By transitioning to leasehold, you can negotiate your prices and pay a lower rent price for your space. If leasehold isn’t the right move for you, moving to serviced can still save you money. The flexibility of serviced offices allows you to scale up or down your business with ease and eliminates large upfront costs for fit out etc.
Exploring Leasehold, Serviced and Managed Offices for Cost Savings
Relocating your office in London can be a great way to optimise expenses by evaluating rental costs, transportation expenses, and necessary office space. As well as this, an office move reaps additional benefits such as greater employee satisfaction and increased productivity. If you think that moving office could save your company money, please get in touch with one of the team and we can help you every step of the way.