How UK Companies Are Dealing With Expensive Office Space

Recent figures have shown that the UK’s property bubble is not unique to its residential properties. There has been much speculation and criticism surrounding the way the current UK housing market is being handled, as many young people are forced to move out of the capital. This has, as a result, driven prices in the South East of the country up as workers look for a location where it is still possible to commute into the capital.

The sky-high prices also stretch to the capital’s commercial sector where it currently costs $22,527 per square meter to rent. According to published figures, London is currently fifth on the list of the most expensive commercial locations, behind Paris, Tokyo, Singapore and Hong Kong, which with prices more than double second place Singapore, is in a distant first place.

Virtual Offices

A virtual office has become popular particularly amongst smaller, or startup, companies as it provides communication and address services without the need for dedicated office space. Service providers such as Landmark supply users with a City of London business address, mail collection point, and forwarding service. It also includes a professional receptionist who, working from home, rarely, if ever, meets their client face-to-face.

This assistant can take any company calls, screening any unwanted messages, and forward any information on to the business owner. The inclusion of the receptionist is seen as a big draw for smaller businesses working on a budget that, under normal circumstances, couldn’t employ their own staff. Despite the advent of voicemail, studies show that as many of 75% of callers hang up when they realize the call is being handled by a machine.

Serviced Offices

Business centers – otherwise referred to as managed offices or executive centers – have also become common in the capital. A serviced office is an office that is fully equipped and managed by a facility management company. This company then rents individual offices or floors to other businesses. The appeal comes from the fact that serviced offices are able to offer more flexible rental terms in comparison to conventional leased offices, which often comes with added furnishing equipment expenses, on top of the already more restrictive leases. One of the reasons smaller companies have become drawn to this is the flexibility of the space offered. This can, generally, be changed at short notice, which is ideal for startup companies expecting growth or those who want to downsize in tough economic climates.

Meeting rooms

Short to medium-term rental options for businesses provided by the serviced office market also offer flexible office accommodation by way of licenses.

This allows for a short-term financial commitment, with the possibility for your business to expand or contract at very short notice.