As the economy continues to recover from the effects of the recession, more and more start up businesses are beginning to launch, and many existing businesses are choosing to expand their workforce, which has meant many companies are struggling to locate suitable office space for rent. The demand for serviced offices has grown by an estimated 24 percent in the last year, and ticking all the boxes – the perfect size, the perfect amenities, the perfect location, and the perfect cost – is becoming all the more difficult.
A question many businesses are asking is why it’s becoming increasingly difficult to find suitable office space for rent. Just why are so many businesses struggling to find a professional home that’s handy, affordable, and well equipped? The problem, it seems, is twofold:
With businesses being advised to be wise when it comes to office space for rent, one of the most valuable things an SME can do is compare office rent costs online before committing to a contract. Compareyourbusinesscosts.com features a handy, easy-to-use online comparison tool which allows businesses to quickly and easily identify low cost, high quality office spaces in their area, facilitating buinsess growth and development while also ensuring you stay within your budget.
The City of London reports that there are now 2250 businesses in the capital operating out of serviced offices, and this figure is expected to rise over the next few years as more and more businesses begin to understand the advantages of serviced offices and how they could benefit the business. So just what is it about serviced offices that makes them such an attractive option?
Here are just some of the many advantages of serviced offices that are worth taking into consideration when thinking about office space:
Government figures show that more than half of all serviced offices in London are occupied by small and medium enterprises (SMEs) that are not expecting to significantly expand their workforce within the next 3-5 years. These small businesses who are working to build a strong reputation before focusing on growth can benefit from the ease and flexibility of serviced offices. When compared to traditional office space for rent, serviced offers are a good way for SMEs to operate a professional business without having to manage the ins and outs of property rental. Serviced offices are ideal for SMEs that want something more formal than a coworking space, but not quite as involved as a traditional office set up.
The good news for businesses – particularly those based in or around London – is that serviced office space in the capital has quadrupled since 1995, and is expected to double in size again by 2025! More and more property investors are transforming their premises into easy-to-use serviced offices for small businesses, giving SMEs a wide range of choice regarding location, size, features, and cost. Business can locate suitable serviced offices – or other types of office space for rent – by comparing office rent online with compareyourbusinesscosts.com.
London-based estate agent Knight Frank has released its Regional Office Market Portal report for 2015 and – as expected – we’re seeing office rent gradually increasing across the country. This year alone, rent for serviced offices and traditional office spaces have risen by as much as £2 per square foot in up-and-coming technology hubs like Sheffield and Leeds, and bigger jumps are anticipated for next year. In Manchester, office rent is expected to hit £34 per square foot on average by the end of 2016.
So just why is it becoming more difficult, particularly for small businesses and new start ups, to find an affordable office space for rent? The answer all boils down to the state of the economy. While the economy is still recovering, investors are slowly but surely regaining confidence. We’re seeing a definite trend for existing office buildings to be refurbished to luxurious levels, and for the construction of new office spaces with spectacular views and modern amenities. No. 1 Whitehall Riverside in Leeds and London’s Principal Place are prime examples of this growth. Ultimately, property developers are once again investing, which means we’re seeing an influx of designer office spaces – with designer price tags.
The good news for small businesses looking for an office to rent is that this price hike doesn’t have to have that much of a significant impact. In fact, it’s still possible to find great office deals that will enable you to grow and develop your business from a secure setting. Here are just a few ways you can keep your office rent below budget:
By comparing office rent, small businesses can locate the best premises in their local area, enabling them to find an office space that not only ticks all the boxes in terms of amenities but is also professional and affordable. Compareyourbusinesscosts.com’s easy-to-use online comparison tool makes searching for office spaces quick and simple.
Ask yourself this – do you really need a traditional office? Consider alternative business space for rent – like a coworking space, for example. Coworking spaces can be perfect for small businesses wanting to keep costs down, and has the added advantage that there’s no long term commitments – great if you’re planning to expand.
Before searching for an office space, consider how much room you really need – there’s no point paying extra for space that you won’t use. According to the Health & Safety Executive (HSE), the legal requirement in the UK is 11 cubic metres of space per person. Small businesses especially may find that they don’t really need a huge office.
An estimated one quarter of all technology businesses in London are considering relocating to different premises outside of the city because of increasing office rent, according to the ‘Joining the Dots’ report by Tech London Associates. In the last year alone, estate agent firm Carter Jonas reports that office rent across the city has risen by 13 percent on average, and by 14 percent in many West End locations. This is making it much more challenging for businesses – particularly SMEs and new start ups – to find a suitable office space for rent that meets their everyday needs, and their budget.
The good news for businesses is that this price hike shouldn’t be enough to drive them out of the city. Savvy businesses don’t need to relocate – instead, they simply need to employ some tactics that enable them to get the best properties for the best rates. Here’s why your London-based business doesn’t need to relocate to regional offices:
Incubator, accelerator, and coworking spaces (IACs) are a hot new trend in the city. There are reportedly more than 132 official coworking spaces in central London today, offering a professional, shared working environment for freelancers, start ups, and small businesses. Coworking spaces are expected to become much more versatile in the coming years as the concept gains traction, with the Greater London Authority stating that we could see ‘the market covering a broader range of sectors, including those with workspace requirements beyond pure desk space working’.
Serviced offices, which offer businesses a ‘pre-made’ working environment that contains everything they need to simply move in and start working, are proving to be an attractive option for many small companies that are looking for an affordable business space for rent. A report by the City of London shows that, in the ten years between 2003 and 2013, the number of serviced offices in London grew from 365 to a whopping 1600. The advantage of serviced offices is that contract lengths are typically much shorter and more flexible than traditional offices, allowing for growth opportunities.
Online price comparisons are beginning to become the norm in the UK, with more than half of us using an online price comparison tool before making major purchases. If you’re looking for an office to rent in London that meets your budget requirements, a quick price comparison can make a huge difference when it comes to rates. It’s never been easier to compare office rent due to websites such as compareyourbusinesscosts.com which are dedicated to identifying the best deals for small businesses in the UK. Comparing is easy, fast, and hassle-free, so why not give it a try?
Thinking of looking for a coworking space for your business? You won’t be disappointed. Coworking spaces are right on trend, and there’s more and more popping up all the time. In fact, there’s so many choices of coworking space these days that it can be difficult to know where to start. The first step to finding a coworking space is to decide which type of space would be right for your business. So just what sort of options are available to you?
Part coffee shop, part office – welcome to the ‘coffice’. If you’re a freelancer or are working singlehandedly on a big project, heading to the local coffee shop can have many advantages. Studies have found that we’re typically more productive amongst ambient noise rather than high noise or no noise at all, for example. It’s a more informal type of coworking space, but can really work.
Perfect For: Freelancers, the self-employed, and those that just want to get stuff done.
Bean bags to lounge on, neon folding chairs for visitors, and board games on the tables – think Google’s trendy offices, but without the price tag. These types of coworking space are ideal for small businesses and new start ups that are working hard to build their brand, and are ‘testing the waters’ before choosing to commit to a full office rental contract. Not so great for impressing clients, though.
Perfect For:Graphic designers, beauticians, artists, and those offering ‘unique’ services.
With big windows, breathtaking views, and a modern, minimalist design, these coworking spaces offer all the perks of a regular office environment, without the contract. If your coworking space needs are less about a place to sit quietly and get things done, and more about meeting with potential clients and impressing investors, then these professional coworking spaces are ideal.
Perfect For:More established businesses, those planning regular meetings, and ‘serious’ businesses.
The second step to finding a coworking space is to locate a great deal. Now that you know what it is you’re looking for and have narrowed down the choices, it’s time to compare coworking space office rent online to find a suitable and affordable deal. By using compareyourbusinesscosts.com’s online comparison tool, it’s quick and easy to see which spaces are closest to you, which have day rates, which require you to agree to a set number of hours, and so on. Find your ideal space today.
Are you looking for an office space to rent? What are your priorities? Personal offices for managers? An open plan environment with plenty of personal space for employees? While these aspects may seem important, they’re going against the natural progression and evolution of the ‘modern office’. Although it may sound strange, personal space as we once knew it is out, and collaboration is in.
Collaboration is something that’s essential to take into consideration when looking for a suitable office space for rent. Why? Because that’s how many employees are choosing to get things done – and it’s working. Today, employees don’t want – and in many cases don’t need – their own personal space, especially if they’re planning to spend time working from home, or will be required to regularly work from a client’s premises. It’s estimated that by 2020, 64 percent of workers will be splitting their time between the office and their home, while around half will be based at a customer site on a part-time basis. Personal work spaces are becoming less of a priority for businesses.
So personal space is out? What’s in? Collaboration. Businesses who already implement flexible working patterns, or are considering offering this option in the future, should be focusing on collaboration when searching for an office space for rent. So what should you be looking for?
When you’re looking at an office space for rent, consider whether the design and layout could facilitate collaboration in terms of day-to-day working. Think open plan, but with less ‘personal’ space and more collective space, joint space, and shared space for brainstorming and idea sharing.
If you offer home working, or employee home-based freelancers, consider that some employees may only be in the office for meetings -either internally or with a client on site. Meeting facilities are vital when looking at an office space for rent because they directly encourage collaboration.
In today’s working environment, collaboration means enabling all employees to participate and cooperate, wherever they may be. Collaboration technology is key – things like voIP, cloud computing, and wireless technologies. Consider serviced offices, which are set up for this.
There are many different offices spaces for rent that would perfectly suit your preferences, and meet your employee’s needs, so how do you find them? Businesses are advised to compare office rent online at compareyourbusinesscosts.com to identify great venues and find the best deals.