The office market is a hot topic for professionals, especially with evolving working trends. As the market adapts, occupiers now have a range of office solutions to choose from, ranging from conventional leases to managed options.
As commercial property agents, a question we are frequently asked is: “What are the key differences in options for office solutions?”
Conventional Office Leases:
This is the traditional route—where businesses sign a direct lease with the landlord, usually for a term of 5+ years. With this option, companies are responsible for fitting out and furnishing the space according to their preferences, giving them complete control over the office environment throughout the lease. However, it’s important to note that along with the rent, businesses are responsible for additional costs such as business rates, utility bills, repairs, and other expenses.
Best for: Established companies that are looking for stability and long-term control over their office space.
Fully Furnished / Plug and Play:
A growing trend. Fully furnished offices allow you to move into a ready-made space right after signing the lease. The design and fit-out phases are already completed, saving businesses time and effort. These spaces are often offered for minimum 3-year terms directly with the landlord. This option is ideal for companies that want a quick, hassle-free setup with protection from conventional lease terms.
Best for: Companies looking for a 3-year office solution directly with the landlord, without the need to manage a fit-out project.
Managed/Flexi Offices:
Typically, self-contained plug and play offices offered via a license agreement with a managed operator or directly with the landlord. This option bundles costs such as business rates, service charges, and maintenance into a single, fixed amount. Terms are highly flexible, often starting at 12 months or more.
Best for: Businesses seeking a flexible, self-contained, and hassle-free office solution without long-term commitment.
Serviced Offices:
If you think of WeWork or similar coworking spaces, you’re already familiar with the concept of serviced offices. These providers offer everything from private offices and meeting rooms to hot desks and collaboration spaces. Typically charged on a monthly, per-desk basis, serviced offices offer great flexibility with short-term licenses (often around 12 months).
Best for: Start-ups, freelancers, or businesses that need maximum flexibility and want to avoid long-term commitments.
Further information
Choosing the right type of office space can have a significant impact on the day-to-day running of your company, as well as its long-term success. That’s why getting expert occupational advice is key to making the best decision for your business.
If you’re exploring office space in London and need guidance, feel free to reach out to our team to help you find the right fit for your business!
Ben Cronan, Senior Surveyor – Available at ben.cronan@argroup.co.uk or via telephone on 07977 687265
Gerard Barry, Head of Transactional and Capital Markets – gerard.barry@argroup.co.uk or via telephone on 07812 687794
