In the Loop: What You Should Know About Leasing an Office Space in London

Before leasing an office space in London, there are certain things to take into account before you begin to negotiate price and terms. Size, location, standard of rental and of course price, are all important factors in finding and choosing a suitable commercial office for your business in London.
Ask yourself some key questions before starting your search; what do you want for your business and what do you need for your business? The answer to these questions is vital to securing the best for your company.
Firstly, consider the size of the space available and the size that you require. You need to calculate the maximum and minimum square footage needed to house your business. Whether it's a whole building or just one floor, the question of size must come first.

Once the size has been agreed, location must come second on your list of considerations when searching for office space for rental. Where in London would be most beneficial to your business? Does the trendy, exclusive district of Mayfair suit your company's image and clientele or are good transport links to the rest of the city important? If so, Hammersmith maybe for you. Are views of the River Thames your ideal view from the office window? Then Southwark and Waterloo would be favourable choices. Also think about parking for your customers and employees; are there adequate car parking facilities nearby?

Once a city location is decided for your business, the location in your chosen building is just as important. Does the nature of your business or employees make a ground floor office space a necessity? Does the size of your workforce need more than two floors? Are panoramic views a desire in your conference room? These small details make a huge difference to your business and go hand-in-hand with the location of your office space in London.

So, the size and location has been set, next comes the standard of the office you wish to rent. A basic commercial space would need decoration and would therefore require more work before moving in, but would be cheaper to rent. Mid-range offices are decorated neutrally allowing slight personalisation of the rental and also come with air conditioning. Top quality spaces are usually newly refurbished, attractive work environments that have raised flooring and air conditioning.

Consider what work would need to be done before moving in, such as floors being replaced or carpeted, how the heating and air conditioning is maintained and is there an existing security system or will one need to be installed? Also consider the cost of such alterations when looking for a suitable standard of office. Remember that the more you require the less negotiating room you will have with the landlord.

Now that all the key points and desires for you new office in London have been agreed, it is time to consider price. Firstly, what is the maximum amount (per square foot, per annum) that you would be willing to spend on the rental? This also ties in with the quality of the rental you would prefer, for example, a basic office in Hammersmith will cost a lot less than an office space in Chelsea or office space Mayfair. Or would a mid-range space in reasonable Knightsbridge be more suitable? Everything must be taken into consideration at this point when what you want to pay and what you might have to pay could rely heavily on your chosen factors of size, standard and location.

Therefore, if you want a basic office in somewhere exclusive and desirable but the price is still too high, consider a mid-range rental in somewhere less exclusive but with a similar vibe. Money could be saved, whilst still securing a beneficial location.
Alternatively, if the standard and location of your chosen office is acceptable, but not for the size you want, consider lowering your standard to basic, therefore maintaining the size and location of your preferred rental.
There are also occasions when large companies rent entire floors of office space in London and then decide to rent elsewhere or to downsize. If this should happen somewhere your business would like to locate to, the management company of the building will sublet the space for a much lower price than the going rate for general office space in that building.

This could be a major trick in getting the best price for your rental.
Also, consider the taxes and possible one-off charges required, for example; legal costs, refurbishment costs and property tax. Carefully study and re-read the property or lease agreement and be clear what is and isn't covered. Check whether the lease outlines the state of the square footage of the agreed office space. Can you make repairs if the landlord cannot and will this amount then be deducted from the rent? Check how the lease defines how disputes will be decided.

Once all these tasks have been taken into consideration, the final lease approval and negotiation can begin with the estate agent. Make sure your needs are voiced and make sure every detail is clear and acceptable to you and your business. Be clear on what is negotiable and what isn't before you begin.
But be prepared to negotiate. It is very unlikely that the lessor will tailor the rental exactly to what you want, so be ready to compromise and seem flexible.

Never appear too desperate to secure London office space as this will give the lessor all the bargaining power and could leave you with costs or compromises you don't want.
If the agreement is not going the way you wish and there is no more room to negotiate, be strong and walk away. Always have a couple of properties on a short list ready for such an occasion and then you aren't left without. There will be many similar office spaces for rental in London, so be sure to look thoroughly before making any steps towards sorting out a lease. Making a shortlist of five of the best or your five favourite rentals will keep you covered and will result in you obtaining the best commercial office space in London for you and your business.

How To Start Your Own Business - From Renting Office Space To Paying Tax

It can be daunting to start a business, with many things to consider before setting out. But like with many things if there is risk involved then the benefits are often high so making sure that you are fully prepared before starting out is essential.
There are a lot of things to consider from renting or buying office space in london, to employing a workforce as well as paying the correct amount of tax.

Starting a business can be exciting and in many cases quite lucrative long-term but having the correct knowledge and financial support is crucial to ensure that the business does not fail. It is a well-known fact that as many as two thirds of all businesses fail within the first three years, which could have been down to not having the correct tools to start off with.

The best thing to do is write a checklist of things that need to be found out before opening for business. Perhaps one of the most important and costly outgoings is finding the right business premises. Renting out office space should be one of the first considerations. Does the business require large office space, or can the business function operating from a small unit. Think about the equipment that is needed to get the business off the ground and for on-going functionality. Is there a large outlay initially for stock and has this been taken into consideration when looking at office space in terms of having adequate storage.

Has the financial needs of the business been considered, for example will the business run on one person operating it, or will it require employees. In which case, the issues of tax and national insurance come into play. Can this be done by the business owner or does the business require the expertise of an accountant.
Considering when the business will be at its busiest is always a good way to plan viability. For example are you selling a product or service that would be particularly popular around Christmas time, warranting the need to employ more employees.

If that is the case, will there be times in the business when it will go through times of hardship, and ensuring the right provisions are in place to support the business through these times.
There are ways to help a business get started without approaching the bank for a loan to get started. The first one is the Young Enterprise Scheme. This is aimed at anyone as young as five and is a charity based organisation that gives people the inspiration and equipment they need to succeed in business.
Secondly there is the Prince's Trust, which is aimed at 18-30 year olds and offers advice and support as well as low rate loans.

The less commonly known organisation is called Make your Mark-start talking ideas. This is aimed at younger people aged 13-20 and can help turn ideas into reality.
Whatever option is chosen to get the business off the ground, ensuring that it is registered as a business is essential. There are a few ways that this can happen. The first option is a sole trader. This is probably the most common ways to start out and is the simplest in terms of arranging tax. The downside to this is that initially financing could be harder and if things go wrong personal assets could be at risk.
The second most common way is to register as a limited company; there are businesses that have ltd and plc at the end of the title. It is more complicated to set up in terms of tax but it's good because your personal assets are not at risk if the business fails.

The other main thing to arrange as well as ensuring the correct office space and type of business is the tax. The taxes that need to be considered are deciding whether to be self-employed, which means that all taxes will be calculated by the business owner. V.A.T on goods and services, import and export taxes as well as other taxes. It can be very complicated and the best advice is to look at the HMRC website where all the correct information can be found.

Whatever the business the most important ingredients are commitment and determination and having the correct support from friends and family as well as I the business world will ensure the business is a success.

Growth in London Office Rental - A Look at the Booming London Office Market

With the current state of the very challenging economic climate it is essential for business's to make the right moves, many consider location to be the make or break of a company's success rates. London's office space proves to contain some of the country's best office locations flourishing with business opportunity, and may just provide the solution to this problem.

London offices can be obtained in a range of locations; from established corporate areas, to the stylish tourist attracting suburbs. London is one of the world's biggest centres of finance and serves the perfect place for the business traveller. As well as this London works as an ideal social scene with world famous exclusive Michelin-starred restaurants such as L'Atelier de Joel Robuchon. London is full of specialist boutiques, quirky markets and world renowned stores; from The Beatles Store to Harrods, there is never a shortage of things to do in London.

It is undoubtedly apparent that situating in the prominent position of London's city comes with a great deal of advantages, the vibrant and fast moving pace of London serves an ideal location for London office rental. Easy access is supplied to the central business districts with the vastly dispersed underground system, London buses, and taxis on all routes. Communications therefore could not be any more efficient for potential clientele and are ideal for networking.

The London office market has grown a significant amount in the past 5 years with an increase in demand for London's commercial space. This is due to an advanced communications and information technology infrastructure and a supreme concentration of professional services The London office market is facing a bright future as a number of reports reflect positive outlooks for 2011 and the upcoming years.
Such office space locations include eminent areas such as Covent Garden, and Kings Cross, where the office spaces are surrounded by everything the city of London is renowned for. Rental prices for basic, economical locations such as this start from a mere £17.50 per square foot (per annum). Similarly priced locations include Knightsbridge and Victoria; with newly refurbished commercial office space which provides scenic views across Central London.

For the most luxury and top quality offices, prices range between £25.00 and £92.00 per square foot. Office spaces such as these come available with newly refurbished, high quality staffed reception areas. As well as this the London office rental space includes; comfort cooling and air conditioning, raised access flooring, suspended ceilings, parking facilities, passenger lifts and toilets. Many of the office locations including; Knightsbridge and Belgravia, Canary Wharf, and Marylebone, are on very flexible lease terms.

The physical environment in which you or your company works holds a great deal of importance. Providing an adequate environment for a workforce is essential; as well as improving staff satisfaction and contentment, office location can have an immense impact on business productivity and revenue, at the heart of the world's commercial markets it is unquestionable that London offices provide a great foundation for a successful future.

Advice On Where To Start Searching For Office Space in London?

For quality office space, London has a range of accommodation available. Services offices monthly rental includes business rates, utilities and cleaning, while the tenant will be responsible for telephone and Internet charges. Depending on the type of office space you are renting and the level of service you are paying for, the monthly rental can also include things such as office furniture, the use of the breakout and meeting areas, lunch areas, kitchens and a manned reception area.

Another option is to enter into a leasehold agreement on office space. This usually involves committing to the space for at least a year ranging up to 15 years. When renting an office space in this way you can usually fit out the premises to your specification, marking your company's identity on the office space. Rent will usually include just the rent. With all other extras being organised separately.

Size and services
Floor area in London office space is one of the most important factors to consider when renting any office. With rental prices usually based on each square foot of space leased, it is important to ensure you get the right size office for your needs. Allow 70 to 80 square foot for each person who will be based at the office, although some landlords will provide up to 100 square foot per person. It is always a good idea to make sure your commercial property estate agent, double checks the measurement of the space you are renting.

Depending on how you intend to use the office, it could be worth considering renting storage space for items such as stock. Rather than rent extra meeting space that won't be used on a daily basis, it could be worth looking to rent an office in a building that contains a meeting room that can be hired on an as and when basis, or simply using a separate venue for any meetings that need to take place.

Whilst you can save money by using storage and hiring separate meeting rooms, trying to squeeze as much as possible into the smallest space can be counter productive. Trying to work in cramped or crowded conditions isn't always the most efficient way to work, and if clients are going to be visiting the office, they may not be impressed by a cluttered workplace. Likewise something that is disproportionately too large could simply make your clients and workers question your judgement on choosing an appropriately sized office space.

Choosing a location
With office space in London, you usually get what you pay for and location can be the biggest influence on price. The more demand there is for a particular location, the more expensive the office space will be. Getting a good deal should be a balance between selecting the right area and the size and quality of the accommodation. Getting an office in London that has good basic services as well as well maintained and cared for premises is much better than paying less for shoddy services and a badly serviced building.

The timeframe of your office rental in London is another important factor to consider. Many offices across the city offer rolling monthly contracts, which can give you plenty of freedom to be able to move premises if you need smaller, larger or simply a different office space in another location for whatever reason. There will usually be a 3 - 6 month minimum contract, with a monthly rolling contract coming into force after that period. This rolling contract principle is ideal for new businesses or those in a transitional stage, as it allows greater flexibility for growth.

Is It Better To Rent Or To Buy Your London Office Space?

Starting a new business can be hard but rewarding both short-term and long-term with many factors contributing to its success. Getting the right office space can be a big a major player both financially and logistically, so getting it right first time can is essential.

Finding the right premises is often one of the first purchases for many new businesses but the question that should be considered before anything else is, should the office space in London be rented or bought and what is best for business.

Many businesses are started from home, which is effectively the best way for it to start to consider its viability before investing into office space, but as the business grows; it can be more productive to take the step to having your own premises.

There are a few main points to consider when deciding on whether to rent or to buy which may make the decision much easier.
The first main thing to consider is the issue of money and initial capital. Everyone knows that when buying a property an initial lump sum of money is needed in order to make the purchase. It works exactly the same way for buying business premises. Unless you have a large amount of money to directly buy a London office space, then a commercial mortgage may also be required.

The downside of this is that it may affect the possibility of securing potential borrowing capital for new projects having a big impact on profit. Despite this, it is worth taking into consideration that by buying the office space, it is investing into the business long-term, which is in turn as asset.
The good thing about renting is that a large sum of money is not always required up-front, usually only one-three month's rent in advance is required. The down-side is that money is being investing into someone else's business and profitability.
However renting will give greater control over cash flow and rents tend to be fixed whereas mortgages are variable and can change frequently. Building owners will also have to pay extra for things like building insurance.
All businesses will have to consider other bills such as business rates and utility bills, so when calculating costs these need to dictate on whether it will be more valuable to rent or buy.
As a leaseholder it is not the businesses responsibility if problems arise with the building such as damage to the roof, it would be the responsibility of the building owner. This could be a major factor on whether to rent or to buy, and depends on the level of responsibility the business wants to take on. By renting London office space if things go wrong it won't affect the profit if major repairs are needed, making it much more appealing to many businesses.

One of the final things to consider is flexibility and where the business will be a few years' time.
As the business develops, more office space may be required, so the premises that are currently being used may not be suitable long-term. If that is the case, it is much easier to relocate with rental office space. It is an idea to arrange short-term rental agreements so that in the instance that your space needs change it is easier to move on. If the premises are owned, it can be a bit trickier to move forward.
Quite often the only options are to lease out the office space, now making you a landlord, with all the responsibilities as mentioned previously.
There are other things to consider when deciding on whether to rent of buy office space but the main ones have been mentioned above. Ultimately it is down to personal choice and what is best for business, either way it has to be financially viable.