Serviced Offices Blog


Think Ahead With Office Space

Posted by admin on July 24, 2012 at 10:47 am. Filed under: office space

When a business is looking for office space to rent it can be daunting picking the right one because there is so much to take into consideration. There are a few common mistakes that continually need to be addressed and are best avoided, whether that be for a start up business or a multi-national company.

Getting the right location is just as important as implementing the right business idea, but while countless hours are spent deeply inspecting and developing business plans, market strategies and getting a source of funding, finding the right London office space is frequently shoved back to the bottom of the pile. The ‘right’ location will very much depend on what kind of a business you run and whether you welcome customers into your premises or not. If this is the case, then you’ll want to make sure that your customers can access your office and also potentially that it is in a location where customers might be if they were looking for your type of business.

If you don’t receive customers on site, then location may be less important, but you will still want to consider factors such as good transport links and what might make life easier for you and your staff both to get to and from the workplace during the daily commute, but also if you need to go out to meetings and events.

It is obviously always best to try and avoid the most common of mistakes when seeking out the right premises. It is important not to undervalue the worth of immediate appearance. The way that an office looks can have a significant impact on any future business or investor relations so it is crucial that when you choose office space to rent, it matches the desired image for your business. For example, a medical practice firm operating from above a nightclub could give a poor impression. Serviced office space in London gives you the opportunity of having smart-looking offices in a prestigious location (if desired) at a fraction of the cost of the same kind of office on a traditional lease.

How a business wants to be viewed in the future is also something that needs to be taken into consideration. The office you’ve just found may be perfect for the business in the present day but further down the line in a few years it may well be an issue. A long-term lease could possibly leave a business in a situation where they feel they are unable to progress any further because they are restricted from expanding into larger premises or changing location if they’ve found that the current one isn’t working out so well. Unfortunately, as rent on premises constitutes such a large part of a business’s outgoings, being stuck in the wrong kind of office can mean the end for many companies. A serviced office space gives you a flexible agreement where the size and/or location of your premises can be changed as and when the business requires it.

 

Shrinking Manchester Office Space Supply Sees Rental Prices Rise

Posted by admin on July 22, 2012 at 3:09 pm. Filed under: office space

Population Rise

The population of Manchester is on the rise. With five universities, two internationally renowned football clubs, an excellent transport infrastructure and a plentitude of internationally recognised restaurants, bars and hotels, more and more people from both the UK and abroad are flocking to the world-class city in the North West of England to live and to work. In fact, new figures from the Office of National Statistics suggest that the population of Greater Manchester is set to increase by 20% in the next 20 years, with the number of people living in the city of Manchester expected to rise to 605,000 by 2035 – up 28% from 2012.

Growing Economy

With one of the largest economies in the UK and with excellent links to rest of the world, Manchester is also growing as a business destination. Traditionally known as the birthplace of the industrial revolution, the economy of Greater Manchester has diversified greatly in recent years and the region is now an economic hub for many industries, including cultural, creative and digital industries, media, real estate, financial services, legal services, biotechnology, tourism and advanced manufacturing. In a 2010 poll, the city was voted the second-best city in the UK to locate a business and the twelfth best in Europe. With a wide choice of entertainment and leisure options, Manchester also has a top class reputation as an international conference destination and last year the city moved up seven places from its 2010 position to 79th position in the world ranking in the ICCA’s (International Congress and Convention Association) annual conference report.

Office Space

As more and more people choose to set up businesses in Manchester and as local businesses continue to grow, it is perhaps no great surprise that the uptake of office rentals is increasing. Employee numbers can rise quickly in an expanding business and without enough room at a business’ current premises business growth can be curtailed. Many businesses are managing such expansion by renting serviced office space, a choice that offers flexibility and convenience. Many freelancers and entrepreneurs with start-ups are also taking advantage of the flexibility that renting offers.

However, the cost of renting office space in Manchester is continuing to grow due to an increase in the number of businesses being located in the city. Indeed, city property experts are predicting that the rise in the cost of renting office space in Manchester will soon exceed inflation. According to the real estate advisor, Savills, the rental prices of Manchester offices have already risen at over twice the rate of inflation in the past year and further growth is forecasted in the months ahead. The increase in rents is attributed to a shrinking supply of new office space and the trend is expected to continuing for the next two years. However, with the total cost of renting office space in Manchester below £6,000 per desk per year according to DTZ, Manchester remains a less expensive place for office rental than Bristol, Cardiff and Leeds.

 

Uptake of Serviced Office Rental Rises in North East

Posted by admin on July 19, 2012 at 3:08 pm. Filed under: office space

New research carried out by the office search consultancy firm officebroker.com reveals that the number of businesses in the North East of the UK that are choosing to rent serviced offices rather than buying their own premises has seen a significant rise recently, suggesting that businesses are increasingly looking for flexibility when it comes to identifying new premises.

Officebroker.com’s Serviced Office Review (which is compiled from internal sales and marketing data) tracks the trends in the serviced office market in the UK on a quarterly basis, focusing on the supply and demand for serviced office space (including the number of enquires received), as well as the workstation prices and initial licence length commitment of new serviced office tenants (S.O.Ts). For the purpose of the study, the North East is considered to be any region with a postcode prefixed by DH, DL, NE, SR, and TS.

Newly signed S.O.Ts

The research looked at the number of businesses in the North East that moved to offices to let and the figures showed a 61% increase in the number of newly signed S.O.Ts between January and May 2012 in contrast with the same period the previous year. This rise is significant when compared with the UK market as a whole, which saw serviced office space take-up rise by only 9% in the first quarter of 2012.

Average Licence Length

According to the study, the average licence length signed by new S.O.Ts rose from 9.1 months to 10.3 months, which is 2.3 months longer than the national average.

Enquiries

The number of enquiries received about serviced office space decreased by 22% in contrast with the first quarter of 2011, which is roughly in line with the UK market as a whole, which saw serviced office space enquiry levels fall by 15%.

Average Desk Space Volume

The average workstation or desk space volume per S.O.T. moved marginally from 3.7 workstations in 2011 to 3.5 in 2012. This is slightly lower than the national average, which saw workstations volume levels remain unchanged at 4.4 workstations in both the opening quarter of 2011 and 2012.

Cost of Serviced Office Space

The study also revealed that the price of office space rental in the North East has fallen from £176.00 per workstation per month in January to May 2011 to £164.00 in same period this year. The decrease in price goes against the trend in other regions and cities – for example, Greater London office space prices rose by £27 in the same period and Birmingham office space saw prices rise from £170.00 per workstation per month in 2011 to £195.00 in 2012. Indeed, the average UK market price increased from £283.00 in the first quarter of 2011 to £295.00 in the first quarter of 2012.

The overall increase in the numbers of businesses taking up rented serviced office space shows an increase in the level of awareness of the practice, as businesses owners look for ways to save money and avoid risk in this difficult economic climate.

 

Location, Layout and Additional Costs

Posted by admin on July 14, 2012 at 10:43 am. Filed under: office space

When searching around for the right offices to rent, consideration needs to be placed on the finer details rather than just buying the first office that looks attractive. Much thought needs to be invested into budget and location plans as equally for a company that is renowned throughout the world as for one that is just starting out on its initial business adventure.

The first thing to think about is whether the business is prepared to compromise its accessibility for a lower rent. Office space in difficult to reach areas where customers struggle to find you is logically going to be set at a lower rent than those within easily reachable facilities and strong transport links. How far away the nearest bus stop or local shop is could be a major factor in whether you will be able to attract the targeted amount of visitors. Similarly, you might even want to consider the bigger picture and look at a wider network of links. If you and your staff need to travel far and wide across the country (or even the world) you might prefer to choose more central offices to let in Birmingham, than focusing on looking to rent office space in London (although this can have equally good links depending on which area you choose).

The right layout of the office can also have a huge impact on a business’s situation. Many businesses tend to overestimate how much office space they really need because they are trying to think ahead for what their future business needs might be. You could say this is wishful thinking, but getting stuck in offices which are too small and don’t allow you to expand can be just as restrictive to your business as paying a higher rent than you need to for offices which are, at present, too big.

You should also bear in mind that the right atmosphere in an office is much easier to achieve if a business has moved into a place with the correct layout for them. If interaction between staff members holds chief importance then an open office would have a better impact on their business rather than one which requires constant privacy and discretion such as a law firm or financial adviser.

The additional costs that are incurred when looking for offices to rent must also be addressed. Overspending on office space is a trap that that many businesses fall into and this can quickly become a serious problem. Providing the funding not only for rental but also for service charges, heating, lighting, furniture, insurance and business rates can be subjects that need to be addressed before there is a fully functioning office and many new start ups don’t take these additional expenses into consideration. This is just one of many reasons why many new ventures choose to go with a serviced office space, knowing that costs are fixed because all of these extra charges are included in the flat monthly lease rate. What’s more, you’ll also get many other necessary services included, such as cleaning and security.

 

Renting an Office Space in London

Posted by admin on July 2, 2012 at 10:42 am. Filed under: office space

Looking for offices to rent in London can lead you into a crossroads where you are desperately trying to avoid a minefield of choices. One positive is that the capital can really help businesses based there flourish thanks to the many opportunities available, but picking the right one can be a difficult process which requires time, effort and research.

Everyone knows that owning an office in the London proximity is costly and many office rental prices fall out of line with regards to the basic business budget. A lot of thought needs to go into certain issues before any permanent building is committed to, otherwise this can backfire and leave the business in a difficult financial position, which unfortunately can sometimes not be reversed.

The layout of the building needs to be considered in relation to your business needs. Rather than having an office space which is permanently larger than your usual requirements can turn out to be extremely draining on a company’s finances, yet not having enough space to hold occasional meetings or welcome important visitors might also hinder the future growth of your business. Rooms for conferences, reception areas and other facilities such as toilets and kitchens are factors that you will probably want to take into consideration, although there are plenty of other options so that you don’t need to incorporate all of these into your own office space and costs. Instead of signing for a long-term lease which will most likely tie a business down for a minimum of three years, there is the preferable alternative of renting serviced offices which are always let on a flexible agreement and which include shared use of the facilities mentioned above.

This short-term lease option is becoming increasingly popular for businesses that are both small and large in size because they allow a change in office space (up or down) if it becomes necessary. And not to mention that any serviced offices will be designed around shared conference rooms, reception areas and other facilities which leaves you with just the simple office area to work within and pay directly for. The advantages of this for small businesses and new start ups is obvious because of the amount of time and money it can save in setting up premises for the first time, but large corporations can also reap the benefits. Whether your business simply wants to open a temporary new London branch while sounding out the area, or you want to deliver a short-term project in the capital, you can rent a serviced office space that meets your size requirements.

Be sure to visibly check any property that a business is considering moving to before a contract is signed to ensure everything is as expected. It may not be possible to afford the more sophisticated serviced offices in Mayfair initially, but it is possible to get an effective office space that can satisfy the instant desires and needs of a business. If you’ve decided that Mayfair is the essential area for your business, a serviced office will certainly bring the costs down in this prestigious location.