As a business grows, or expands, there will come a time when working from home, or your current office, becomes impractical.
That is the stage when you need to consider whether to move into Serviced Offices (which is normally a short-term fix) or Buy or Rent an Office.
Serviced Offices: This is a very convenient half-way house to moving into bought or rented accommodation, as all of your needs – Office Space, Meeting Rooms, Reception Area with Professional Staff, Gas, Electricity, Water, Business Rates etc. are normally wrapped up into one fixed price. The downside, is that they can work out proportionately much more expensive and you may soon need to add extra offices, or move to larger premises as you continue to grow.
Leased Offices: This is the most common arrangement, and not without good reason. Since the Financial Crash of 2007, there has only been limited building of Commercial Properties, making them very difficult to find in many locations – and expensive! Most Landlords (us included) offer flexible Leases, meaning that a mutually acceptable term can be agreed. There is usually no large upfront cost, although Rent is payable in advance, normally every three months, on the Quarter Days. You will be obviously be responsible for paying for your Utilities and Business Rates, and any Maintenance whist occupying the premises. Do note that, the shorter the Lease, the higher the Rent. It is important to note that your Rent and Expenses are all fully Tax Deductible. By Renting, you can use your funds to help grow your business, by investing in new employees or stock etc.
Quijote Properties make sure that the Offices are fully refurbished before a new Tenant takes up occupancy. Ours all have Full Gas Central Heating, Air Conditioning, Network & Power Cabling, Fast Fibre Broadband, Intruder & Fire Alarm, Kitchen and are all freshly painted and fitted with carpet tiles. Some also have CCTV available. All have Parking.
Buying Property: If you have the funds available, this may be the best option. The property may increase in value giving the owners increased equity in the future. Normally a 30 % Deposit will be required, if it is bought with a mortgage. The Lender will require a professional valuation and a charge over the property and usually will require that the borrower has Life Insurance to cover the amount borrowed. All of these have financial implications. However, as mentioned above, finding the right property, in the best location for the business, can be difficult. Neither do not underestimate the cost associated with buying property, including Solicitors, Stamp Duty, fitting out the office and maybe some maintenance even before you move in!
Do weigh up the pros and cons of each option and choose your preference carefully.