fbpx
What is a Leasehold office?

What is a Leasehold Office?

Uncategorized

When searching for a new workspace, it is important to understand the different types of offices before proceeding. A leasehold office is also known as a traditional office. Leaseholds are fixed for a period of 3-10 years; however, leases often include options to break which act as opportunities to leave the property at pre-determined dates. There are different types of leases for example subleases, lease assignments and new leases direct from landlords. To understand these fully it is always advisable to instruct an agent like ourselves.

Traditional office space is rented on an annual basis at a cost per square foot of area. It is rented on a annual basis at a cost per square foot of the net internal area. It is the tenant’s responsibility for paying the rent, rates, and service charges. The interiors are the responsibility of the tenant except for a few cases where the landlord pre-organises the office (category A+ office space). The tenant is responsible for managing and maintaining all facilities within their demise. This includes space planning, furniture, fit-out, cleaning, IT, telephone network setup, utility bill payment, and service expenses. Typically, the running costs are uncapped where a tenant can easily encounter unforeseen costs. For example, if there are any defects within their demise.

What is the difference between serviced office space and leased office space? 

Serviced offices offer a team to fully fit-out and manage the running of the workspace. The contract is usually up to twelve months to three years due to the license, and they can be quicker to move into compared to Leasehold. The main advantages of these offices are transparency via all-inclusive monthly costs, flexibility, and lower set-up costs in comparison to leased accommodation. Private offices, fixed workstations, hot desks, and coworking spaces are all available in serviced offices. You share common parts of the space which means that the kitchen areas can be more glamourous.

What is a Leasehold office?
Bermondsey Street, London SE1

What are the benefits of a Leasehold office?  

  • One of the main advantages of a traditional office is the possibility to maintain your company presence. This can be through signs at the entrance to the office, as well as throughout the rest of the decor. As a result, it gives you more options for protecting your company’s image.   
  • It gives you more control over how you use and manage your office space. You may choose to add more meeting rooms, breakout spaces, and multiple kitchens, it is entirely up to you how you organise the space.   
  • Established companies can consider longer leases as it makes it worthwhile to spend on the fit-out if it lasts for a while.   
  • Businesses under a lease typically have the security of tenure. To understand this better it is important to liaise with a company like Victor Harris.

What are drawbacks of Leasehold offices?

  • Compared to serviced and managed office spaces, deal completion normally takes much longer as it is a more in-depth process.    
  • Uncapped costs – I.e., costs to repair faulty items within the demise, costs for professionals and costs associated with exiting the lease.  
What is a Leasehold Office?
Alfred Place, London WC1

Why should you choose a Leasehold office? 

You should weigh up all your options carefully and take Serviced and Managed offices into consideration before deciding. Location is also a key factor to consider depending on the business needs. Choose a conventional office only if you are looking for a permanent business location to build your own business space, by investing sufficient time and resources. If you are considering housing a substantial number of employees and you need plenty of additional space, then a traditional office is the best option for your business. 

How do I find leased office space? 

Using agents such as Victor Harris is the most efficient way. However, companies who have the time to search/learn can do so. Typically, it is advisable not to do it without expert help, as if a mistake is made it is something a business would have to endure for the duration of their lease. Alternatively, our website, which is soon to be re-launching again. The new sophisticated search system that gives you the ability to search yourself.

Read More
What is a Managed Office?

What is a Managed Office?

Uncategorized

With office costs continuing to rise, more and more business owners are considering to move their business into a managed office space. But what exactly is a managed office? What are the benefits? How do you know if it is right for your business? This guide will help you answer all these questions and get a better understanding.

Is it the same as a Serviced Office?   

Although sometimes confused with a serviced office, there is a significant difference between the two. Managed is a hybrid space which is in between serviced and leasehold. It offers the flexibility of serviced with the privacy of a leasehold self-contained space. This means flexible terms and a fully fitted space for a single monthly price. This is like serviced but with the benefit of being self-contained like traditional leasehold space.

The offices come fully equipped and the provider takes care of any issues that arise. For example, if the air conditioning stops working, the provider will be responsible for resolving the issue. This is unlike a leasehold office, where problems would directly rest with the occupying business.

Typically deposits with managed offices are lower in comparison to leasehold and contracts are usually shorter, with either licenses or short-form leases. This is different to leasehold as they require around 30/50 page leases. Managed offices are known to be better tech-enabled spaces with seamless mobile apps that communicate with the managed office provider. The providers are also enhancing their offerings which go as far as concierge services.

Pictured: A Managed Office we are marketing in EC2

What Are the Benefits of Using a Managed Office Service?

Greater flexibility  

Many managed office contracts last at least around 1-3 years. However, shorter agreements can be arranged between the two parties. The flexibility aspect usually appeals to start-ups and small businesses that do not have the financial stability to commit to a longer term. If you are a larger, more established business, you can also negotiate for agreements to last even longer, giving you security and stability. 

More privacy  

Managed offices offer increased privacy since none of the areas of the building is shared with other companies. Therefore, there are no interruptions by other people. This enables you to concentrate without being distracted, which is great for firms dealing with sensitive information or discussing and organising company activities. Some offices have their own front door, which is great for those that have clients visiting and want to make a good impression.  

Control with design  

A managed office is essentially a blank canvas for the renter to put their mark on. The advantage is that you can create a space that works best for your business. Desks, lighting, colour schemes and branding can all be customised to fit business needs. When it comes to the design and decor of the office, it is ultimately up to the renter. Meeting rooms can be added to the space as well as private office rooms. The office team will provide you with an interior designer who will work with you to create your vision. This service comes with the price of the office.

Lower risk and cost

The fixed monthly fee gives businesses access to available facilities and enables companies to leave the premises if they want to move on later down the line. Therefore, there will not be any surprises with extra charges when moving in or out, so renters can keep track of spending.   

Space Management

Managed office providers will take on the role of the operations team for your company. This means they will ensure the office is cleaned and maintained. They also stock up the kitchens with milk and other essentials like coffee and even organise birthday celebrations for your staff members.

Pictured: A Managed Office we are marketing in EC2

Why Should You Consider Moving to A Fully Managed Office?   

You should consider a fully managed office if you want the best of leasehold and serviced in one. This is also a great option for those that have outgrown their serviced office spaces and are now looking to move into a space of their own but still with flexibility and convenience. If the design is an important factor, then this also the option is for you. The office team will work with designers to create a bespoke fit-out that suits your company’s needs. This could be in a modern working style or a traditional one depending on the company’s preference.  

If you find yourself wanting to get straight to work and have office rooms, meeting rooms and amenities ready for you, then a serviced office is the best option for you. This option will allow you to move into an office right away without having to design the space. If you are still unsure about the type of office that will suit you best, then get in touch. We would be happy to answer any questions you may have.

If you would like to find a Managed office, Victor Harris can help. We will be able to find you a space that suits your needs and requirements. Get in touch with our team of experts on 020 7183 8458 or send us an email inquiry at [email protected]

Read More

What is a Serviced Office?

Uncategorized

A serviced office is already setup with everything that you need from the day you move into it. A great option for those that would prefer to have everything included into one payment. Serviced office providers are responsible for the upkeep of day to day tasks, ensuring everything runs smoothly. This includes the front desk, stocking the kitchen with amenities, cleaning, replacing broken light bulbs and installing the WiFi. This means that you can focus all of your attention onto your business.

Serviced offices are great for companies who wish to move to their desired location quickly and efficiently. They provide flexibility compared to leasehold offices as they have various sized options. This can be great for businesses to size up or down according to the needs of the business. Unlike the traditional office space, a serviced office ensures the company only pay for the space or desks that are being used.

Inevitably, this office type has become a popular option for businesses. Allowing for the small and tedious tasks of what running an office entail to be handled by service providers, which again packaged within what you would be paying. 

Serviced offices charge businesses a single inclusive monthly cost based on a per desk price. The price is established based on location, quality and interior design. Contact the Victor Harris team on 020 7183 8458 or [email protected] to find out more.

Features In a Serviced Office

The features of what a serviced office can provide vary according to basic needs to something more luxurious. 

A standard serviced office would include:

  • Furniture 
  • Mail services  
  • Kitchen facilities 
  • Cleaning services 
  • On-site security
  • High-speed internet 
  • Audio-visual equipment
  • Printers and photocopiers 
  • Front desk management/co-ordination

As listed, these are the essentials of what a serviced office would provide you with, forming the clockwork for how your business would function in a well-serviced office environment. 

Extra Benefits In a Serviced Office

A further benefit of working in a serviced office is that can be rented on a flexible and short-term basis. It offers inbuilt facilities such as clerical support and reception staff. Also, there is the emphasis on little input needed from the tenant, which minimises upfront capital expenditure such as buying furniture and other costly needs to suit your business’s needs. 

Luxury serviced offices can offer further services such as: 

  • Bike storage
  • Roof terraces 
  • Gym facilities
  • Shower rooms
  • Coffee lounges
  • Private meeting rooms 
  • Fitness and wellbeing classes 

Flexibility & Scalability 

Serviced offices are great for start-ups and entrepreneurs, ideal for companies not looking to commit to long-term contracts with hidden costs such as maintenance. Similarly for businesses that are expanding into new markets, this is a great option due to the short-term rental option. Particularly after the pandemic, the serviced office has become the more desired choice due to the flexibility and move-in ready nature of the spaces. 

Serviced offices are the best option for accommodating growth due to the unpredictability of running a new business or freelance operation. For example, if a business takes on new hires and realise they need more space to operate comfortably, they can expand in a fuss-friendly manner. 

The services provided in these spaces also include bookable meetings rooms and a managed reception area. This ensures that the office is maintained in a professional and accessible manner, and so making it great for hosting guests.

A Stimulating Workspace

Many serviced offices strive to provide bespoke and unique aesthetics and layouts such as plush furniture or unique design features. According to what your company provides, being a creative company to a corporate one, the spectrum is wide full of options that would fit your ideal workspace appearance. This is also a selling point as it can negate the sense of monotony that can be intrinsic to the more traditionally bland office environment. Post-pandemic life has pushed for a place that is for wellness as well as work. Many serviced offices offer extra amenities, such as lounges, pool tables and events, all organised by the office provider. 

Summary of a Serviced Office

To conclude, the benefits of a serviced office include flexibility to choose how long you need the office for and how much space you need. The facilities are all included in a monthly payment, and you only pay for what you use. Ultimately, everything is ready for you, along with amenities. You do not need to think about fitting the office yourself – you can simply move in.

Would you like to find your ideal serviced office? Victor Harris can help you with your office search to suit your needs and requirements. Get in touch with one of team of experts on 020 7183 8458 or send us an email inquiry at [email protected].

Read More

Which office is right for you: serviced, hybrid (managed) or leasehold?

Uncategorized

Are you on the hunt for new office space and undecided on which space is right for you? Finding the right type of office space for you can be quite complex. Especially when there are several types of offices to suit diverse needs. Consideration of cost, location, size of office space and building amenities will be significant to ensure that the property lives up to your specific requirements. Finding the right office is crucial to having a successful company culture and productivity. Victor Harris can help you find a suitable location at a low monthly cost, with their office search to make the process easier.

If you want to learn more about these types of offices, read on for further information. Victor Harris can offer you the right advice and guidance in deciding what office rental to choose.

Serviced Offices

Serviced offices are ideal for those unsure about working patterns, who want to embrace flexibility and only pay for space when required. These types of offices are good for those wanting increased amenities for employees, to empower the workforce and to help encourage them back. The advantage of managed offices is that they allow you to grow on-demand as and when you need to. Additionally, tenants share the breakout rooms, kitchens and lounge areas, making them affordable and sophisticated.

These types of offices consist of fully serviced work-ready spaces or individual workplaces. Therefore, this results in the rent being an all-inclusive price. This not only covers the office spaces but also amenities such as reception services, concierge, networking events, wellness, cleaning services and power. Consequently, the offices come in a furnished fashion, including IT infrastructure, security, furniture and anything else your workspace may need. These offices usually have multiple locations, so you can book meeting rooms in other buildings, if required.

Usually, serviced offices are built specifically with this assistance in mind, making them different from managed offices. This will include all the essentials of contemporary businesses. As these offices are rentable for any length of time, it allows the business to be flexible. There is no up-front capital expenditure and costs are given in an all-inclusive invoice. Along with this, broker fees are all-inclusive, making things incredibly simple and flexible! 

Managed offices 

Managed offices are typically self-contained floors with bolt-on services and are fully included within a single inclusive monthly charge. This includes set-up fees, running costs and exit fees (dilapidations). They are bespoke options and usually include furniture and relevant designs suitable for the occupying business. Commonly they are more advanced and efficient than traditional A+ fitted spaces. The provider or property owner would manage issues that may arise such as an air conditioning breakdown or a broken light. They allow the business to focus on running their company by handling the broker fees and running costs.

These types of offices work well as hybrid working solutions. They take the best elements from traditional leasehold and serviced office space facilities, merging them together. Renters are therefore, free from the obligations of a traditional lease, such as being responsible for defects. Managed offices are great for those who would prefer to have everything done for them but also want to maintain an exclusive image.

Leased offices 

A conventional owned leased office space allows you to rent from the owner of the building directly at a cost per square foot per annum basis. Unlike the managed or serviced office options, you stand at the risk of a rise in cost. Everything rests with the tenant, i.e., maintaining stocked kitchens, building the office environment and making sure everything is working. Companies who choose a leasehold may need to consider an operations team or an office manager to take care of the day-to-day tasks like these.

At the end of the lease, you will be responsible for dilapidations. This type of office is a longer-term solution than a serviced office. A contractual commitment agreement is usually around 3 to 10 years. Larger businesses usually go for leased offices, being confident that their business will not crumble in future years.  

Renters must keep a budget in mind since they will have to cater for other costs. This can include IT, security, utilities, and service charges amongst other factors, together with paying capital expenditure at the start. Furthermore, renters should be aware that they must return the office space to its original state when the lease ends. Office rental can be tricky when there are so many options and features to weigh up. However, picking the office space that suits you is an essential contributing factor to the success of your business.

Summary

The biggest point to consider is that leasehold has uncapped costs i.e., business rates and running costs. Managed offices offer a slightly higher inclusive rental price however, this includes more bolt-ons. This makes it easy to keep costs fixed each month, however, serviced offices offer an easy flexible experience. Monthly costs are higher with leasehold offices when you consider all of the combined fees such as stamp duty, rent, rates, professional fees and service charges.

Difficulties may arise when weighing up the advantages and disadvantages of each and it may also be unclear if the best deal has been negotiated. You may want to allow the professionals to take this work off your hands. This ensures that the required needs have been met and the best deal has been made.

A combined 30 years of property experience makes Victor Harris one of the most experienced in the industry. We can provide any client looking for commercial property in London with knowledge of market insights and traditional surveyor values. Victor Harris offers both technological and traditional treatments, to meet the needs of every individual. 

To use the Victor Harris office search, contact the team here.

Read More