Renting an Office: Tips & All You Need

renting an office
Photo by Max Rahubovskiy

The location of your office is important, regardless of the type of business you run. Look for an office that is easily accessible and convenient for both employees and clients. Examine whether the adjacent buildings are occupied by thriving businesses and whether the surrounding neighborhood is safe. Ensure that the office is easily accessible by car or low-cost public transportation. In this article, we will be discussing the procedures for renting an office room, tips when renting an office space, the cost of renting an office room in the UK, and factors that influence the cost.

Procedures for Renting an Office Space

When renting an office room, there are four steps to take:

#1. Locate the Ideal Office Space for Your Company

You must decide which office space is best suited to your company’s requirements. Do you require a large space, such as a warehouse or an office with room to expand? It is critical to consider your business strategy. – do you anticipate your company growing shortly? If this is the case, renting an office space that allows you to expand without having to relocate may be a good idea.

#2. Consider the Costs

Rent is critical, especially if you are starting a business and need to save as much money as possible to get it off the ground. As a result, before venturing into the city, you may want to start by renting commercial property in a less well-known or ‘up and coming’ area.

Remember that if you have a long-term lease, your payment may include rent reviews every three to five years, which can cause the amount you pay to change over time. This amount can rise or fall depending on the lease you sign. This is usually stated in your lease, so consider the frequency of these rent reviews before signing on the dotted line – especially if the area is prone to fluctuating rents.  

#3. Reach an Agreement on a Commercial Lease

A lease agreement or licence is required to rent commercial property. A lease is a legally binding contract that specifies the terms and conditions of the landlord-tenant tenancy agreement. Unlike, say, a licence, it offers long-term stability.

When an offer is finally accepted, request that the landlord refrain from further marketing the office room. This may prevent the rental from proceeding because the landlord may be enticed by another offer on the table from another business – the last thing you need.

#4. Exchange Contracts and Finalise the Transaction

Once the money is in place and your commercial agent and solicitor are satisfied with the condition of the commercial property as well as the contract, you will exchange contracts. When the contracts are exchanged, this transaction will become a legally binding contract. Once the balance is paid, the project is completed.

Reasons for Renting an Office Room

Renting an office space may appear to be a significant step, but there are numerous reasons why it may be beneficial to your business. Take a look at our reasons why you should consider renting an office space:

#1. Simple Tasks

Certain things will be pre-set up for you in a rented office space. Some office spaces already have phone lines installed, so you don’t have to set that up yourself. You can be close to your storage room stock by renting an office space, and we can accept deliveries on your behalf. This means you won’t have to wait for a delivery because we’ll keep it safe for you.  

#2. Expansion with Little Risk

Moving to an office allows you to expand your business more flexibly without taking on too much risk or paying too much money upfront, as you might if you bought It also implies that you can move around and expand quickly if necessary. Many rental offices can be rented on a short-term basis, so if you decide to test the concept, you still have options.

#3. Image of Professionalism

One of the primary advantages of renting an office space over working from home is that you project a more professional image. Having a separate office from your home is a sign of a legitimate business; you can meet with clients without having to go to a coffee shop.

#4. Using Shared Space

Even if you do not share an office, you will come into contact with other companies in the office building. While they may not be in the same niche or industry as you, you may find that speaking with and connecting with these other businesses is beneficial to your productivity as a company and as an individual – and you may even gain additional business as a result of it.  

#5. Making the Best Choice

There is a compelling case to be made for renting an office space, but it often comes down to what is best for you. Weighing your options and your own business goals is an important part of deciding to rent an office space.

What Is the Cost Of  Renting an Average Office Space in the UK?

According to recent research, the average annual cost of renting an office space in the United Kingdom is around £35 per square foot. However, depending on the factors mentioned above, this cost can rise or fall. Renting an office space in London, for example, could cost between £27 and £37 per square foot, whereas in Manchester, it could cost between £80 and £100. The table below details the rental costs for offices in major UK cities:

City Annual rental cost (per square foot)
London£80-£100
Manchester£27–£37
Birmingham £20-£37 
Liverpool £22-£35
Edinburgh£25-£35
Glasgow £22-£30
Brighton  £35-£50
Newcastle £18-£27 
Nottingham£18-£25
Bristol £25-£35

Factors That Influence the Cost of Renting an Office Room

Office rental prices can vary dramatically depending on a variety of factors, such as location, size and type of space, amenities provided, and lease duration. When looking for a suitable office space for your business, knowing the factors that influence office rental prices can help you make an informed decision. 

#1. Location 

One of the most important factors in determining office rental prices is location. Prices vary between cities and even within cities, depending on the area or neighbourhood in which the office space is located. Renting an office in downtown areas, for example, may be more expensive than in other locations due to higher demand and limited availability. 

#2. Size and Type

The size (measured in square footage) and type of space (open plan, closed cubicles, coworking spaces, etc.) will also have an impact on rental prices. Larger spaces will generally cost more than smaller ones because there is more room to rent out. If the space has features such as air conditioning or heating, it will increase the cost of renting an office space. 

#3. Amenities 

High-speed internet access, meeting rooms, parking spaces, kitchen areas, and other amenities can all have an impact on office rental prices. If you require specific amenities or facilities in your office space, your overall rental costs may rise. 

#4. Lease Period 

The length of your lease agreement can also have an impact on office rental prices. Short-term leases are typically more expensive per month than long-term leases because they include additional costs such as setup fees and deposit payments. Short-term leases, on the other hand, may be advantageous if you still need to determine how long you need to rent office space.

6 Tips for Renting an Office Room

If you want to rent a space for your business, consider the following suggestions:

#1. Determine Whether You Require Space

Determine whether office space is required before renting a space. Some businesses can now function entirely remotely. This means that everyone works from home and communicates via the internet. If your company can operate in this manner, you can avoid the costs associated with renting a space.

#2. Make a List of Must-Haves

Before visiting any potential locations, make a list of what you want in the space you move into. You might need a space with a certain number of bathrooms, a waiting area, or a kitchen, for example. Knowing what features your space requires allows you to narrow down the number of locations you investigate further and save time.

#3. Select a Nearby Location

Consider your own and your employees’ commute times. Choose a location that is convenient for everyone so that no one has to travel too far for work. If you’re starting a new business, you might only need to think about your location. Reduced commute times can increase job satisfaction, making a nearby location a desirable feature in any business space rental.

#4. Examine the Surroundings

Spend time learning more about the neighbourhood surrounding the rental space to ensure it is a place you want to spend time in. For example, you might want a space near local restaurants where you can take clients or employees after work. Furthermore, you want anyone visiting your location to feel secure in the surrounding neighbourhood.

#5. Determine How Much Space You Require

One of the most important considerations is the size of the space. You’ll want to find a location that is large enough to comfortably accommodate you and your team while not taking up too much extra space. Having too much space can be a waste of resources, as the amount of square footage you rent accounts for a large portion of the rental price. Consider how many rooms you’ll need in your space or try to estimate the square footage you’ll need.

#6. Make Room for Expansion

When determining how much space you require, it is a good idea to leave some room for expansion. If you decide to hire more employees, you’ll want everyone to be able to fit comfortably within your office space so you don’t have to relocate. Consider looking for a space that is slightly larger than you require, as this will allow you to expand without becoming crowded.

Low-Cost Office Space Alternatives in the United Kingdom

Renting an office room may not always be feasible for startups and entrepreneurs’ businesses due to some factors, such as cost. However, there are several low-cost alternatives, which we have listed below:

#1. Household Offices

Setting up a home office is an effective way to save money on rental costs and to work from the convenience of your own home. You can improve the comfort of your home office space by using self-storage facilities, which allow you to store furniture or items that may be cluttering your workspace. 

#2. Coworking Areas

Coworking spaces are a popular choice for many entrepreneurs and small business owners because they provide a shared work environment at an affordable cost. Also, coworking spaces frequently offer networking opportunities, meeting rooms, high-speed internet access, and fully equipped kitchens.

#3. Virtual Office Space

A virtual office provides a professional address to businesses without the hassle of purchasing or renting physical office space. Virtual offices include mail and phone handling services, allowing you to maintain your professionalism while lowering your rental costs.

#4. Office Space Management

Managed office spaces are ideal for professionals looking for a hassle-free solution that includes all of the necessary amenities in one package. Managed office spaces can provide you with an affordable, turn-key solution by offering services such as packaging, shredding, and even van hire. 

Is Renting Office Space for a New Business Difficult?

No, if you take up the task systematically, the task isn’t that tough. But it does take time and patience.

Is Renting an Office Room for My Business Compulsory?

It is not required. However, if you have a team, your business would run more smoothly if you worked from an office. In an office, it is easier to coordinate with coworkers. 

Commercial landlords have a responsibility to ensure that their business property is safe for their tenants and anyone else who uses it. There is frequently a misunderstanding about who is responsible for which aspects of health and safety: the landlord or the tenant.

What Distinguishes a Good Office?

An office requires sufficient natural light to keep it active and to brighten the mood. Ambience: A pleasant view or an attractive setup improves a pleasant working environment. A few factors in an operational ambience are good colours and themes, noise-cancelled rooms, and fresh air ventilation.

What Message Does Office Space Convey?

However, the film’s damning portrayal of bad management and inefficient workplaces remains relevant today. While no job is perfect, Office Space teaches us that examining the flaws is always worthwhile.

Conclusion

Finding a suitable office space for your new business can be a difficult task if you do not take the proper approach or seek assistance from the appropriate people. Don’t go out on your own without a plan. If you have a fantastic new business idea, you should invest in a suitable office space to make it a reality. After the initial work-from-home experience, transitioning into a new office can be overwhelming. But you need to take the leap of faith, set it right, and make your teammates comfortable. Follow the steps outlined above and watch your new business soar to new heights!

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