Office space in London is more expensive than ever – the space required to put down your laptop is costing you as much as £207 per year alone according to Instant Offices.
Companies of all sizes are overpaying for workspace because of the hidden costs of occupancy, and many firms take space that doesn’t fit their business plan or match their office space requirements.
We calculated how much businesses are paying for a portion of office space that equates to the same size as an average laptop and discovered that, given the rising costs of workspace in the capital, it can cost a staggering £207 per year just to put your laptop down on your desk in the West End.
Note: An average laptop is under a square foot, however we’ve used it to help visualise the standard measurement for property.
Hidden Costs of Leased Spaces
The data below shows how costly a sq. ft. of space is in the capital right now by total cost of occupancy (TCO). It also illustrates how a different approach might benefit your business. TCO is the total cost of leasing office space, and includes all the factors that Financial Directors have to take into account including rent, operating expenses and property tax.
There are also hidden costs and variables such as maintenance and facilities costs, which usually fall to the occupier. In addition to this, leased space that sits empty while a company takes on new staff is a major cost, and many businesses end up paying for space they aren’t even using.
For most companies, it is more practical to take up flexible workspace. When all costs and variables are factored in it is more affordable by a considerable amount.
Decrease Costs by Up To 40%
All the costs of a flexible workspace are rolled up into a simple, monthly fee. This approach enables sound business planning and the agility to move to a different office when your business needs to do so, not when your lease expires.
We estimate that for floor space the equivalent size of a laptop, companies can decrease costs by up to 40% per year in the best parts of the capital.
If you consider this per employee, it is more than £4,000 more expensive per year to sign up to a conventional lease. This is money that could be freed up for further investment, expansion or staff benefits.
Considering the exorbitant amounts that businesses are paying for office space, the move to a flexible option is set to become a popular option for companies operating in major cities.