Everything You Could Possibly Want to Know About Renting Office Space in 2019

Why do you even need to rent office space?

There’s little doubt that you know the answer to this already, you’re here because you want office space, we’re here because we know all there is to know about renting office space, so explaining why you need it seems a little futile. That being said, it would feel odd jumping right in without an introduction, so let’s take a look at some of the benefits, shall we?

• Beat the Distraction of Working from Home; there’s plenty of research to show that being somewhere that you associate with working will increase your productivity and reduce the risk of laziness.
• Master the Art of Team Working; a physical office is a perfect venue for team members to meet and collaborate.
• More professional – but no less flexible; renting office space adds credibility to your business, and when you rent with BizSpace you have the security of knowing it can be both temporary and flexible. 
• Friendly on Your Wallet; it’s much moree cost effective to start renting office space than to buy it.
• Less Maintenance; a lot of the responsibility for tasks like building maintenance will usually be somebody else’s responsibility. This frees up more resource that can be used to grow your business.

What are your options?

Fortunately, renting office space isn’t a one-size-fits-all thing, you have options. You’ll also be pleased to know that you’re not going to feel overwhelmed with choice, we promise!

Option One: Leasehold Office Space

Leasehold office space is the most common method of renting and normally involves a fixed agreement between you and the landlord. Effectively, what you’re paying for is the space. Furniture, utilities, maintenance and other building administration tasks are your responsibility in this type of agreement. Leasehold is always the best choice if you want control over your office and freedom to personalise it to suit your business.

Pro’s

–   Usually costs less than serviced office space
–   Usually you’ll have quality a lot of control over what you do with the space. So, decorate to your hearts content
–   Most leasehold office contracts run for a minimum of three years, so choosing one is a statement of longevity

Con’s

–  You’ll need to buy your own furniture and furnishings
–   Often, you’ll be expected to deal with and pay for maintenance of the office
–    A lengthy contract means you’re tied down for longer, so you’ll have to negotiate well if you want to upgrade to a larger space twelve months down the line

Option Two: Serviced Office Space

Serviced offices come with furniture, utilities, internet and various other amenities along with the space itself. The main advantage is that it’s easy to move into serviced office space and even easier to move out with many agreements detailing notice periods of three months or less. The cost of servicing, administration and all the other building maintenance responsibilities fall onto the landlord’s shoulders, lowering the long-term costs. The biggest upset is you have no control over the appearance or features of your office, making it difficult to make the space truly your own.

Pro’s-  The convenience of moving straight in to a fully equipped office
–   Many serviced offices offer a one-month notice period, meaning they can be more flexible to your business growth and needs 

Con’s
–   Costs are often higher than with a leasehold office space
–  It’s harder to add your brand personality. If the space is fully furnished it probably has to stay the way you moved in
–  You might only be able to sign a 12-month contract, which is great for flexibility but might mean having to renegotiate at the end of each contract

Option Three: Coworking Office Space

Coworking offices are the cheapest of the renting options and do exactly what they say on the tin – your office is shared amongst multiple businesses. Apart from this distinct difference, coworking office space is very similar to serviced office space as you have the same amenities dealt with by the landlord and you can’t change the office. One of the key bonuses of sharing space is the obvious social benefits that comes with working around other small businesses, not to mention the networking opportunities. Just be aware that visitors may struggle to locate you and there will be very little privacy, so coworking office space isn’t suitable if you’re dealing with sensitive or personal information.

Pro’s

–  Price, this is by some way the most reasonable option.
–  There is often a lot of flexibility in a coworking space – sometimes as flexible as letting you rent a space for a single day
–  An opportunity to make friends; the social and networking benefits to coworking space are huge

Con’s
–  It’s more difficult to invite customers or clients to come and visit you, though there is likely a shared office or canteen space that you could use
–  You lose a little privacy, particularly if you need to take a lot of confidential phone calls.

Option Four: Virtual Office Space

Before the digital world, there was only one…the brick and mortar office space, but step into the modern world and you’ll find two types of office space – the physical kind and virtual office space.

A virtual office is a perfect way to “boost your rep” as a company and take advantage of services that come with a business address, without the cost of renting a physical space. This is ideal for business owners who don’t really need a physical office but still need somewhere to have their mail delivered and want a professional address to put on their business card.

On top of the credibility and mail management, most virtual office renting (including ours) also boasts additional services like handling your calls, hiring meeting rooms and using photocopiers – your one-stop business solution. The idea of virtual office space is that you stick to working and have a fancy business address, whilst someone else handles the extra bits. For all intents and purposes, most of this guide will be geared towards those looking to find a physical office to rent but if you want more information on virtual office space, follow the white rabbit here.

Let’s identify your priorities shall we?

Now we know what the options are, we need to decide which is best for you? If your business requires clients to regularly visit you, then it makes sense that you would want to have an office that they can associate with your company. Similarly, if you’ve just started up your business and you’re looking to trial the benefits of a physical office, then renting office space is ideal as you will only have to stay for a short, fixed period and can then easily make the decision to stay or move.

Here at BizSpace, we make a point to try and adapt to your needs. If you want more detailed tips on whether renting is suitable for you, get in touch with us and we’ll be happy to advise you.

Location

Location is a key reason many people choose to start renting an office. Although, it’s essential to check the location of your potential new office and consider important points like neighbours and security. Business parks and company buildings tend to have dedicated security systems and are surrounded by similar businesses, with self-contained car parking spaces. We have offices all over the country that are hand-picked by our business team to ensure the safety and security of our wonderful occupants.

How much space do you need?

Whether you plan on hosting the next Cirque du Solei or simply need to house a small team, you need to consider the space you are going to take up. If your office is going to be comprised of primarily computer-based workstations, then suggested guidelines indicate 150-250 square feet per person, although you’ll want to keep server room space and areas for additional appliances, such as those massive printer workstations!

On top of the space you need currently, keep in mind any plans for future growth. Does the office you’re looking at leave room for your business to grow, or is it ‘just right’? If it’s just right, then it may not be suitable when your business starts to grow

Regardless, make sure to fully investigate (and preferably visit) your potential office before committing.

Parking and Accessibility

Accessibility is an essential part of any good office. Consider the number of staff you have and the parking spaces available, as well as the possibility for future expansion. On top of that, make sure to keep in mind how easy it is to reach the office. Are you near a main road, or will staff have to crawl through city centre traffic for an hour to reach you? Furthermore, what if you want to work outside of normal working hours? Is there an electronic access system or will you be forced to stick with conventional timings? Fortunately, most of our locations offer 24-hour access, seven days a week, but these are all important questions you should ask.

Building Condition

The condition of the building you are moving into should play a big role in your decision, particularly if your agreement makes repairs your responsibility. Note that building condition doesn’t just involve the structural health of the property – it involves all the features that create a safe and comfortable working environment like ventilation and heating. Be sure to get a full assessment of the building from the landlord before committing to a decision.

Modifications

An important consideration is whether you can make changes to the office whilst you’re staying there and if so, what are the guidelines? Most lease held offices give tenants a lot of freedom but be sure to get clarification before you move in and start knocking down walls or redecorating. 

Payment and Legalities

After you’ve picked out the office of your dreams, it’s time to start thinking about agreements and legal details. Boring? Maybe, but it’s certainly essential.

Financial Commitments, Not Lifelong Ones

Renting an office can vary greatly in price depending on factors including the type of agreement you have, the location, facilities and amenities involved as well as much more. The only way to truly estimate price is to find an office that has the facilities you need and then see for yourself. There are also additional fees to consider that will vary depending on the agreement with your landlord and your location. These include:

• Utility bills
• Energy bills
• Repair bills
• Service charges
• Business rates

It’s impossible to identify every possible combination of prices, amenities, facilities and additional charges, so all you can do is try and find something suitable for your personal needs but go with your budget in mind.

How do you pay? 

Payment is usually via direct debit, but the intervals can vary depending on location and your personal agreement. To find out more about BizSpace’s payment systems in your potential office location, get in touch with your local centre manager.

Will you be staying long? 

When it comes to agreements, there can be some confusion regarding all the different types and details. In particular, the difference between licencing and leasing. Whilst licences and leases are very similar on the most part, the key differences are in their length and ownership rules.

Licences tend to cover a short period of time maxing out at around two years, whilst leases run for much longer. This difference in length is because licences give you the right to use the property, whilst leases give you the right to exclusive possession of the office – two very different things.

We tend to focus on licences because we have found that most SMEs prefer the flexibility they offer, but we understand that many companies prefer the security of a lease and so we still offer these if required.

In summary, licences are short-term and flexible, giving you permission to use the property. Leases are long-term and more restrictive but give you exclusive ownership.

Your Get-Out-Now Clauses

Break clauses are the failsafe of your lease or licence. A break clause details how the landlord or tenant may end the agreement early, under what conditions and after what period of time. Whilst most break clauses never get used, it’s important to make sure that you have one and that you understand the terms of it, as well as how much notice you must give.

Protection for Your Knick-Knacks

At BizSpace, we include buildings insurance into your rent as well as business rates depending on your local council and area. However, you may need to invest in other forms of insurance depending on the type of office space you’re renting and the details of your agreement. Be sure to discuss insurance with your landlord if you’re not sure.

Time to Call the Movers?

Think you know what you’re after from your next office space? Fantastic, use our ‘Find a Space’ search function to find the perfect place.

Before you go, here are our final two thoughts…

Pick Somewhere that Makes You Proud

Remember, you’re likely to spend an average of eight hours a day in this office, so it’s important that you like it. Pick a space that you’re proud to show off and welcome your clients into. Loving your environment leads to increased productivity and that’s exactly what you need as a small business owner.

When in Doubt… Research!

And finally, if you’re unsure about an office then please don’t hesitate to go and find out more about it. If you can, try to visit it in person. Our centre managers are always happy to help because we understand how difficult it can be to make a final decision and sign that licence. Use our guidance – we want to help you get the office of your dreams.

Still stuck? Check out our FAQs or get in touch for more information.