London Office Rental - Costs
Office rental in London is now
less costly if you choose serviced office space rather than
leasing conventional office space.
According to a new report by the Chartered Institute
of Purchasing and Supply (CIPS) property outsourcing in the
UK is more cost-effective for longer periods, for larger numbers
of people and over a wider geographic spread, compared with
the last report in 1996.
In the first report the CIPS highlighted that
serviced offices were cost-effective for smaller groups looking
to rent an office in London.
The 1996 CIPS report found that a serviced office
space in London, occupied by more than ten people staying in
the location for more than 36 months, was 6% more expensive
using property outsourcing than a conventional lease. In 2002,
the same business holding a furnished office rental in London
would make a 10% saving.
Cost
comparison chart
10 people renting in City
for 36 months
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More significantly, a serviced office space rental
in London for 40 people would be 3% cheaper than taking a conventional
lease, compared with being some 47% more expensive five years
ago.
Cost
comparison chart
40 people renting in City
for 16 months
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The report takes into account all office occupancy
costs, such as rent, furniture, office equipment, electricity
and cleaning. Term periods of between one and 16 months and
number of people between one and 60 were used as the basic criteria
for evaluating cost.
Serviced Office Space in London and the UK
The CIPS findings show that using
serviced office space can provide savings over traditional occupancy
methods. Average savings of 78% were achieved using serviced
office space rental across the eight locations surveyed.
Actual savings vary depending on location, length
of occupancy and the number of people to be accommodated in
each office unit. The survey highlights savings of
between 2-62% in a high cost area such as the City of London,
while savings of between 14-91% can be achieved in a lower cost
area, such as central Birmingham.
Cities researched included Birmingham, Bristol,
Edinburgh, Leeds, Manchester, Reading and London.
average
savings on serviced offices
throughout the country 2002
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To read more about serviced offices, click
here
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