In a climate where people are looking to reduce their spending, businesses are no different. Cutting down on the cost of workspace is one of the easiest ways for organisations to save money.
Below, we have provided a list of our top 9 tips on how to save money when renting office space anywhere in London or the UK.
1. Consider the Types of Workspaces Available
Firstly, evaluate your business's current and future needs. If you expect to grow rapidly, renting a large office space can be worthwhile. But, in some cases, you can avoid overspending by reducing unnecessary space.
The type of space you choose could also help to cut down costs. For example, serviced offices provide a range of ways to save money. If you have a smaller team, consider coworking options, which provide shared office space with access to on-site amenities such as meeting rooms when you need them.
Virtual offices are also a great way to reduce costs if you don’t require a physical workspace. Since the pandemic, some businesses have gone fully remote and benefitted from virtual offices. These packages offer a registered address and administrative services, such as mail handling, for a significantly lower price.
2. Avoid Paying for Unnecessary Amenities
Being critical and avoiding paying for unnecessary amenities is a key tip to save money when renting office space.
Many serviced offices provide shared facilities such as on-site gyms and roof terraces. If these features are not essential for your business, you could reduce costs by choosing a building with less elaborate amenities.
In addition, if you rarely hold meetings, for example, you could cut costs by using shared meeting rooms in the centre rather than renting an office with a dedicated meeting room.
3. Negotiate Lower Rental Costs
Negotiation is crucial to securing a better rental deal and lowering the cost of your office space.
Never accept the first price you are offered. Ensure you have a range of quotes to compare and help you negotiate. Or alternatively, research office pricing in the area to understand the market rates.
If you have a good relationship with your current landlord, you can use this to your advantage to negotiate a discount. Landlords sometimes offer a rent-free period, which can help offset initial moving/relocation costs.
A broker for office space can help you find and negotiate the best deals on your behalf as they have extensive knowledge of the market. Many brokers also have good relationships with landlords they work with and can often secure better discounts for their clients.
4. Consider Non-Prime Locations and Older Buildings
Ultra-modern offices in prime locations will be more expensive. If this isn’t an essential requirement for your business, consider cheaper alternatives.
London, for example, boasts one of the best public transport networks in the world, so offices in Greater London locations still have excellent transport connections and local amenities. If your business requires national or international travel, why not consider renting an office along the Elizabeth Line and benefit from access to Heathrow, London City Airport and Paddington?
Older buildings should never be discredited as they can be easily customised to suit your requirements at a fraction of the cost of their contemporary counterparts. Grade B offices can be found in older buildings and offer a wealth of benefits in addition to saving you money.
Exploring office space in a business park could reduce the price of office space. Business parks offer competitive pricing, with on-site facilities such as cafés and gyms, at a lower price than city-centre locations.
6. Find All-Inclusive Rent Deals
Looking for all-inclusive pricing is a fantastic way to manage and reduce your office costs. This covers utilities, maintenance, rent, and service charges, preventing unexpected expenses. The predictability of monthly costs can help when budgeting.
7. Take Advantage of Grants & Incentives
The government and local councils often provide grants and incentives for businesses, especially when they are starting up and expanding.
These incentives can include reduced business rates for small businesses, so it’s always worth checking if your company qualifies.
Some regions of the UK also offer relocation grants for businesses moving into their area. If you are flexible regarding location, this could be a great way to save money when renting an office.
8. Utilise Your Space
Maximising space use will ensure that you are not paying for areas that are not being used. Efficient workspace use can reduce your costs significantly by making every square foot count.
Incorporating multi-use areas can be a fantastic space saver. For example, meeting rooms can double up as breakout areas when not in use. This reduces the square footage needed, thus reducing wasted space.
Utilising technology to minimise space is another great idea. Cloud storage solutions are now more popular than ever, eliminating the need for physical storage. Furthermore, collaboration tools can reduce the need for large meeting rooms as teams can collaborate remotely.
9. Regularly Review Costs
Regularly review how much you are spending on renting your office to ensure you are getting the best deal. An annual or quarterly review of your rental costs and market rates will ensure you save money.
As market conditions change and better opportunities become available, you may find a cheaper deal elsewhere. If this happens, consider renegotiating with your current landlord or moving to a cheaper space.
Bonus Tips
In addition to the tips above, you may find that the following ideas can further help you save money when renting office space.
Sublet Additional Space
If a large area of your office is unused, consider subletting it to other businesses. This can help offset your rental costs.
Another option is to share the office space on alternative days. If your business only uses the office on certain days of the week, you could rent it out on days it is not in use. However, this could be a complicated agreement if either company’s schedules change.
Before sharing an office, it is crucial to ensure that your lease agreement allows you to sublet and that the arrangement works for your organisation.
Choose an Energy-Efficient Building
An energy-efficient building can provide significant cost savings when renting an office. These buildings often have energy-saving lighting, advanced insulation and modern HVAC systems to lower utility bills. This will, in turn, lower operational costs.
Energy-efficient buildings are often fitted with modern infrastructure and are well-maintained, leading to fewer maintenance issues and expenses.
Some of these buildings also qualify for green certifications and government incentives, so renting a workspace here can further save you money.
Implement a Hybrid Work Model
In a hybrid working model, employees split their time between working from home and the office.
As fewer employees are in the office at any given time, you can make do with a smaller office. Organisations may also find that with less employees in the office, the need for extensive amenities can be reduced, therefore saving additional money.
Shared desks can further help to reduce space. Employees who work in the office on alternating days can share workstations.
Aim for Flexible Terms
Opting for flexible terms is another way businesses can save money when renting office space.
Shorter, flexible leases allow businesses to quickly adapt to changes and avoid long contracts, which could become a burden. This agility enables organisations to upsize or downsize their space, further ensuring that they are only paying for the space they need.
Very often, flexible terms come with fewer penalties for early exits, which reduces financial risks. Because of this, companies can benefit from market fluctuations and move to more cost-effective workspaces without a financial penalty.
In today’s competitive market, saving money on office rentals is crucial for ensuring business growth and financial stability. By following our tips, you can create a cost-effective working environment that allows you to allocate resources more strategically.
