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London is a popular place to be – both to live and work. That’s one of the reasons why the cost of office space in London is higher than in any other city in Europe. For lots of businesses, to be or not to be in London is a no-brainer. Many have built their entire propositions on being based in the capital, so staying in the city is non-negotiable. Put down business roots in London and you can expect to spend between £600 and £1,500 per person per month. For some, it’s a tall order that won’t guarantee success. For others, it’s a small price to pay to reap rewards of consistent income and unparalleled networking opportunities.
Why base your business in London?
There are 8.1 million people based in London. That’s a huge talent pool, and a diverse one. Businesses in the capital can benefit from attracting a culturally diverse workforce, which is essential for making the most of different ideas and perspectives. You can also expect to employ a relatively young workforce, with inner London inhabitants aged between 25 to 34 on average. For many businesses, being in the capital is an opportunity to attract driven, eager-to-learn and talented individuals. Despite the high cost of office space in London, the city brings financial rewards for businesses based here, with the potential to attract high levels of investment. Plus, London is home to more than half of the UK’s incubators and accelerators. These specialist spaces connect start-ups to consultants, training programmes and networks of industry professionals to help them grow exponentially.
Where is the cost of office space in London the highest?
As you would imagine, the cost of office space in London is considerably more expensive in central areas. Mayfair has the highest average prices at £900 to £2,000 per person per month. Head west, however, and this figure falls to £550 and £650. Most popular business hubs in London, like Kings Cross, Soho and the City of London, cost between £650 and £900 per person per month (or as much as £1,400 for some spaces in the City). Area makes a big difference to the cost of office space in London but moving to a cheaper location isn’t always the smartest solution. For example, it wouldn’t make sense for a major investment bank to relocate from Canary Wharf to Croydon, just to save on office space – the loss of business is likely to far outweigh the cheaper rent.
How to save money on London office rent
If you’ve got your heart (and your business head) set on a prestigious area in London, you could save money by choosing a suitable contract. At Fora, we offer full flexibility in your contract, so you won’t get tripped up by pricey long-term leases. By choosing a monthly rolling plan, you can scale up or down depending on your current needs and the size of your team. This way, you’ll avoid paying for surplus space and you’ll always have freedom to move to suit your business.
What are the hidden costs of office space in London?
Rent only counts for 70% of the amount you spend on your office space in London. You can expect to spend the additional 30% on the likes of utilities, insurance, cleaning fees, printing, internet, business rates, legal fees and more. Given that the average Brit drinks 676 cups of coffee a year, you can imagine how much you’ll have to pay just to keep your staff and visitors refreshed throughout the day. Fora workspaces build all these costs into the membership fee, so our Residents can save as much as 29% per month. They also get to enjoy great espresso coffee and T2 tea (plus all the milks you can think of), a whole array of snacks and a handy reception and postal service. And this is all included in the flexible, monthly price. Lots of businesses offer gym memberships as a salary sacrifice or additional benefit scheme, yet Fora Residents have access to our wellness suites as part of the membership fee. Given that the average cost of a gym membership in the UK is £40.53 a month, this added extra can help our Residents enjoy significant savings.
Why choose a co-working space?
Aside from the cost savings of all-inclusive membership fees, a co-working space has a lot to offer businesses. You can work alongside likeminded individuals and share knowledge. Plus, there’s the chance to network with professionals from other backgrounds, to glean their insights and potentially to win more business. At Fora, we take the networking opportunities and community spirit to the next level with monthly breakfast and drinks events, making it even easier to start those all-important conversations. We also run free-for-Residents discussion and training events, which get everyone sharing their ideas and experiences on a range of hot topics.
The cost of headspace
On a more personal level, having an all-inclusive rent package in a co-working space can also free-up a significant amount of your headspace. Knowing all your important costs, like legal fees and service charges, are covered lets you focus on growing your own business. You can find out more about all of Fora’s locations here. Alternatively, why not check out our different membership options to find one that suits you? And if you’re ever in the area, be sure to pop in and try the coffee too!