Deciding to expand your business into the UK market is an exciting opportunity. However, setting up an office space to rent from abroad can be complicated.
It is important to consider the type of workspace you need, as well as location, contract terms and the practicalities of moving in. Each decision needs to balance affordability, functionality and accessibility.
Through our experience in assisting overseas clients in finding offices in London and across the UK, we’ve put together a step-by-step guide to help you through the process.
Step 1: Determine the type of office space you require
There are various types of offices, and the one you choose will impact how easily you can set up your UK office space from abroad.
• Serviced offices – a ready-to-use workspace with all utilities and services included. This is the most convenient option for overseas businesses, as flexible workspaces allow you to test new markets and scale up or down as necessary.
• Managed offices – if you want more flexibility and customisation without having to commit to a long-term lease, then managed offices can be a great option.
• Traditional leases – traditional offices are best suited to international companies establishing a long-term UK presence. Leases often offer lower costs per square foot but require significant planning, time and on-site management. This can be difficult for overseas businesses if they do not have a team to oversee this in the UK.
• Virtual offices – if you are looking to grow your business presence in the UK, virtual offices allow you to use a UK address without committing to a physical office.
Step 2: Decide where you want your office to be based
One of the most important decisions is determining where you want your UK office to be based. Costs can be significantly higher in London due to increased demand, higher deposits and currency exchange fluctuations. As a result, your budget may determine whether renting an office space in London is a realistic option.
Other UK cities are more affordable whilst still offering the same accessibility. Being close to rail links and an international airport is important for staff, clients, and executives for travel between the company's international headquarters and the UK.
London:
• Soho, Shoreditch, Farringdon – Recognised for their digital and creative communities, these areas are ideal for startups, digital and media companies. Farringdon offers direct rail links to Heathrow, Gatwick and Luton airports via the Elizabeth Line and National Rail.
• City, Mayfair, Canary Wharf – These districts are popular with businesses in the finance and corporate sectors. Mayfair and Canary Wharf connect to Heathrow via the Elizabeth Line, whilst London City Airport is just 15 minutes from Canary Wharf on the DLR.
• Stratford, Croydon, Hammersmith – Alternatively, these locations offer more affordable options, with excellent transport links. Stratford provides direct trains to Stansted via Liverpool Street station, and Hammersmith is connected to Heathrow via the Piccadilly Line. Gatwick can be easily reached from Croydon via a direct Thameslink train or the M23 and M25.
Other UK cities:
• Manchester – Overseas digital and media businesses often choose to rent office space in Manchester due to MediaCityUK being nearby. It is also a popular location for finance and start-up companies, supported by a major international airport.
• Birmingham – Birmingham benefits from a strong professional services sector, ideal for international financial or legal companies. It also offers strong transport links to London and an international airport.
• Bristol – This city is more suited to green technology businesses and international creative companies due to its innovative and sustainable reputation. Well-connected by rail and air.
• Edinburgh and Glasgow – Several major banks are based in Edinburgh, making it a leading financial hub. Glasgow also has a thriving fintech sector, ideal for international businesses looking to grow in the UK. Both locations also provide air and rail links to London and international destinations.
Considerations for international businesses:
• Distance to airports – This makes it easier for international employees and clients to travel between their overseas office and the new UK workspace.
• Local transport – Having easy access to transport links helps to attract and retain employees based in the UK. Strong transport connections also ensure commuting is more efficient.
• London prestige vs lower costs - Overseas companies often want a London address due to the reputation it holds. Other UK cities still offer the same benefits but with lower fees.
• Time zones, flight times and connections to overseas headquarters – These can impact daily operations, meetings and maintaining strong communication between the UK workspace and international headquarters.
Step 3: Set your budget
Deciding on a realistic budget is a vital step for international businesses looking to set up a UK office. Companies need to understand how costs are calculated, rather than just looking at rental prices.
It can be easier to manage payments with a UK bank account, so setting this up early can help the process run more smoothly.
Serviced offices typically charge a monthly all-inclusive fee for each desk, with essential facilities included. This makes budgeting easier by eliminating the need to factor in extra costs for set-up and utilities.
On the other hand, traditional leases are based on square footage with utilities, business rates and fit-out costs excluded. This can make it harder to work out a budget due to additional costs arising throughout the process.
Rental prices in London are usually higher than in other cities, and currency exchange rates can also have an impact. It’s also important to factor in deposits, additional add-ons like meeting rooms and IT support, as well as any unexpected costs.
Step 4: Define your office requirements
Before you start researching office space rentals, it’s a good idea to set out your key requirements. For example, the number of desks you’ll need will depend on how many employees you plan to hire locally or relocate. You should also consider the ability to expand as your UK presence grows.
It’s also important to decide what office features you require, such as dedicated meeting rooms, breakout spaces, a pet-friendly policy or on-site parking.
Step 5: Begin researching office spaces online
For most international companies, office searches begin online, enabling them to identify potential offices before visiting in person. This allows you to compare locations, pricing and what is included. Office brokers can help by providing floor plans, brochures and detailed cost breakdowns, which can be more helpful than marketing photos.
Step 6: Book virtual viewings
Before arranging to view offices in person, virtual tours are an ideal way to get a feel for a workspace. Live video tours are often more helpful than pre-recorded walkthroughs, allowing you to ask questions or view specific areas and features.
Step 7: Make a shortlist
After researching and viewing the office spaces to rent online, it is a good idea to create a shortlist of those that fit within your budget and meet your requirements. For international clients, narrowing down the search to a few options helps to reduce travel expenses and makes in-person viewings easier to manage.
Step 8: Arrange in-person visits
Viewing the offices in person is an important step in helping decide which option is right for your business. This is also when you can determine if the space can support future growth. Testing the broadband and mobile reception can help to avoid connectivity issues later.
Another aspect to consider is the local amenities, including transport links, food and leisure options. In-person viewings can be done by a UK-based representative if travelling is difficult.
Step 9: Negotiate the best deal
Negotiating whilst abroad can be complicated. However, a broker like FreeOfficeFinder can help you achieve a better deal. We can often secure incentives such as lower deposits, flexible notice terms and rent-free periods for our international clients.
It’s essential to understand if costs are fixed or are likely to increase. You can also check what options are available for expanding or downsizing if needed. Setting out your requirements helps to make the negotiation process more straightforward, ensuring you get the best deal.
Step 10: Finalise the contract
Once the terms are finalised, it’s time to sign the contract. This can usually be done digitally, simplifying the process for those overseas. You must review the license agreement thoroughly and take legal advice if there is anything you are unsure of. You can then pay your deposit and the first month’s rent. This can either be sent via international bank transfer or through a UK bank account.
You will then be given an official move-in date and can start updating your business records with your new UK address.
Step 11: Move into your new office space
At this point, you will have chosen the right type of workspace and signed the contract. Now it’s time to get the space ready, welcome the team, and start working.
Some of this preparation can be coordinated from abroad or through a UK representative, ensuring a smooth and stress-free transition, particularly for those relocating to the UK.
Final Preparations
• Make sure all compliance requirements are met, including insurance, health & safety, and fire risk assessments.
• Decide whether you are going to bring furniture or source it from local UK suppliers (many serviced and managed offices are fully furnished, making the move-in process easier).
Start Setting Up Your Office
• Set up desks, chairs, meeting rooms and storage.
• Create comfortable breakout spaces to inspire collaboration and to ensure employees have somewhere to rest and recharge.
• Make sure your utilities, internet, phone and IT systems are live and working before any employees arrive.
• Ensure any security and access systems are installed and operating correctly.
Staff Onboarding
• Give staff a tour of the office, provide them with access passes and allocate workspaces
• Offer suggestions about local amenities (transport, food, leisure, healthcare) to help international employees settle in.
Branding and Customising the Workspace
• Add décor and branding to make the office space your own.
• Managed and traditional spaces often allow for more control and customisation, whereas serviced offices restrict permanent modifications but still allow for temporary branding.
Celebrate the Move
• Plan a small launch event or team social to celebrate the new office space and welcome any new employees to the UK.
• Consider sharing your move on social media to build up your presence in the UK market.
Setting up a UK office space from overseas can be challenging; however, following a step-by-step guide makes the process more manageable.
Choosing the right type of office and location, as well as identifying your budget, is essential when beginning your search. Virtual viewings and support from brokers can help to save time and costs, particularly for international clients.
Planning and preparation are key to setting up your UK office space to rent from abroad. Whether you are moving into a serviced office in London or setting up in another city, this ensures a smooth process and sets your business up for success in the UK market.
