Speed of occupation |
3-9 months away
Search, negotiation and legal process to agree a lease will usually involve a longer lead in and negotiation period |
Short notice availability
Short form licence agreement means limited need for solicitors and legal cost |
Process |
Higher complexity
To find the best solution requires, detailed market research, agent, solicitor and fit out company involvement |
Lower complexity
A flexible office agent can arrange viewings and support through negotiations |
Length of commitment |
5 year lease, with a 3 year break typical
On smaller offices typically a 5 year lease with 3rd year break clause. For larger offices in higher prestige buildings lease periods are more typically 10-15 years |
Monthly rolling to 1 year licence agreement
Typical 1 year licence, Ranging from monthly rolling to 3 year agreements |
Outgoings |
Various bills
Rent, business rates, service charge, insurance , data lines and utility services , office cleaning, printing ,post, refreshments and others |
One simple monthly bill
One pre-agreed monthly bill /licence fee . Plus ad hoc variables for meeting room use ,excess wifi usage or printing costs/postage etc |
One off costs |
Various
Fit out, furniture, legal fees, agents fees, stamp duty, wayleaves, dilapidations and double overheads. Rent deposit (typically 6 months) |
None
Included in monthly licence fee. Rent deposits are typically 1-2 months licence fee |
Lifetime costs |
Lower over long term
Typically lower over a longer period depending on size of space and headcount |
Lower over short term
Typically lower over a shorter term of 1 or 2 years, depending on headcount and density. |
Flexibility to change |
Limited by existing space/lease
Can redesign existing floor plates and density or hope for alternative space to become available |
Flexible within larger buildings
Can share change management intentions with Operator and discuss alternative space in same building or other Operator run centre |
Control and privacy |
Significant control
Typically control over everything non structural within the occupier's own demise. |
Limited control and privacy
Can brand within own private offices but shared spaces are under Operator's control |
Additional services |
Not included
Building with several occupiers usually have a manned reception to welcome visitors. Landlords or managing agents will clean and maintain common parts and provide security . Most other administrative services are sourced independently
|
Included
Operators provide security and a reception team that welcomes visitors and can handle post, answers calls and/or manage printing. As well as cleaning services for private offices and common spaces |
Brand control |
Complete control
Signage in entrance hall and at entry to space. Space is tenant's canvas |
Limited
Restricted control, but access to alternative shared spaces that can enhance a brand without the upfront and ongoing costs. |
Managing change |
Relatively inflexible
Typical break clauses are at 3 or 5 years into a 5 or 10 year lease. Therefore timing of these needs strategic consideration at outset. |
Relatively flexible
Particularly suits start ups, project teams and overflow requirements. Some agreements have monthly rolling break clauses. Most licences require 1-3 months notice prior to 12th month. Allows re-thinking of plans on a more frequent basis. |
Meeting rooms |
Occupier creates
Meeting rooms for exclusive use, designed to enhance brand, at own cost |
Operator creates
Unbranded which are used on a pay as you go basis, subject to availability |
Workspace density |
Likely more generous
Often more generous for working environment but with associated costs. |
Usually higher
Higher density in desk environment but ability to use shared spaces and facilities with less expense. |