3 Considerations to Make When Preparing to Lease an Office Space

Posted by: Victor Pardis on 12th October 2019

Leasing an office space for your business can be an exciting and fulfilling process because it signifies the elevation of your company towards becoming an established local brand. However, there are also a number of expenses and challenges that come with leasing an office space in London, and some of these costs aren’t readily apparent beforehand. It’s always wise to exercise caution and due diligence before committing to any long-term business expenses, especially one that will be as significant as a monthly office lease. To ensure you’re in an ideal position to afford and take full advantage of your new office space, try to keep the following three considerations in mind:

1. Utility Costs

Most leased office spaces will not include the cost of utilities within the monthly rent, so you’ll need to shop around for your own utility service providers. You can use a platform like Utility Bidder to check business electricity prices and compare quotes from various utility providers in the UK. Since utility costs will typically be one of the largest monthly business bills aside from rent and payroll expenditure, it’s necessary to plan for this expense in advance and understand the rates that you’ll be paying before you create an office leasing budget.

2. Locational Benefits

As with any other form of real estate, the location will play a major role in the amount of additional attention and awareness that an office will be able to produce for your brand. Obviously, a shop that’s located in a bustling urban district is going to be noticed by more people than one that’s located in a small strip plaza on the outskirts of town. Try to decide whether the extra exposure is really necessary or beneficial for your business model, as you could save money by opting for a less prestigious location. On the other hand, if projecting the utmost professionalism is your goal, then you should try to secure an office space that is situated in a prominent building within a metropolitan area.

3. Financial Feasibility

Once you have a detailed budget that will give you an idea of how much it will cost to keep your office running smoothly, it’s time to decide whether you’ll be able to generate enough revenue to keep the ship afloat. Generally, it’s best to opt for an office lease that won’t be expensive enough to place a burden on your ability to re-invest in the business. In an ideal scenario, you should be spending no more than 20% of the company’s gross monthly income on office leasing and utility costs.

Does Your Company Really Need a Physical Office Space?

In closing, it’s important to ask yourself whether your company will really benefit from having a designated office space. If you’ve been operating successfully from home, you might just be creating another unnecessary expense. On the other hand, upgrading to an official place of business could give your brand a boost in popularity and prestige that will help you attract premium customers and clients.