Office tenure explained
Companies looking to acquire office space should match the tenure or rental agreement to the needs of their business. So, what options do you have?
Serviced offices provide flexible, all-inclusive office space on a monthly licence. They appeal not only to the smaller growing businesses that require the ultimate in flexibility, but also to larger corporates including offshoot projects and regional offices.
This low risk solution allows occupiers to benefit from fixed costs and a ready-made office infrastructure, with the option of professional administration and support services. Normally calculated on a workstation basis, serviced offices provide the flexibility to grow your business without the cost and upheaval of moving premises.
Managed office space provides a step between serviced office space and traditional office lettings. In other words, once a company outgrows serviced office space but, at the same time, is not looking to commit to a traditional office lease, managed offices fill the gap.
In summary, managed offices fulfill the office space needs of those companies seeking the flexibility of lease terms associated with serviced offices, together with little or no capital expenditure, but a guaranteed fully inclusive occupational cost for known budgeting which takes care of various aspects of facilities management.
Typically, the all-inclusive licence fee includes:
- Utility bills
- Refurbishment and fit out
- General maintenance
- Office cleaning and window cleaning
- Kitchen and washroom supplies
- Plant and flower maintenance
- PAT testing
- Fire extinguisher supply and maintenance
- Pest control
- Smoke alarm testing
- Lift maintenance
- Service charge
- Buildings insurance
For companies with their own dedicated receptionist and IT systems requiring office space for 10 workstations upwards, managed office space provides a cost-effective solution for growing companies but still with the benefit of fixed costs and no end of term dilapidations. KWB can seek managed office space for clients anywhere in the UK. The office space would be bespoke and fitted out to suit occupiers’ style and needs.
Leasehold offices to let
Based on a contract between tenant and landlord, renting an office on a conventional lease is particularly suitable for medium to large sized companies that require the stability of a 3-5 year lease or longer. This option doesn’t require such a large initial cash outlay as outright purchase but still offers flexibility for new businesses or those in a period of growth.
In a leasehold office you are responsible for the rent, service charge, business rates and all costs associated with the office building. You may also be subject to rent and service charge increases.
Freehold offices for sale
Ideal as an investment opportunity or for established companies, by purchasing an office you are free from the worries of rental increases and can generate extra income from renting out surplus office space. Freehold office space offers you stability, financial control and a good long term investment.
The development of courtyard office schemes, in which KWB has been instrumental in the Midlands, has enabled small to medium sized businesses to acquire their own ‘front door’ offices within a managed courtyard environment and utilise the financial benefits of a pension vehicle.