Long Term Lease vs Serviced Offices
A start up marketing agency reaching the end of it's first year trading is now looking to acquire premises in central Manchester. Image is of the upmost importance as both clients and focus group members will regularly visit the premises.
Whilst the last 12 months have exceeded projected growth, there is no guarantee of continued growth in the current climate. However, to secure continued success they now need to acquire accommodation within a professional business environment.
There is no guarantee of continued growth
in the current economic climate
The immediate need is for 5 desks and a dedicated meeting room within central Manchester. Following an extensive search of the market, two options have been identified.
Long Term Lease
- 700 sq ft of grade A space within a multi tenanted building
- Space for 5 desks and a dedicated meeting room which will need constructing
- Minimum term 5 years
- Annual cost of rent and services is £46,200
- Additional costs for furniture and constructing meeting room £10,500
- Total first year cost £56,700
Serviced Office
- Grade A space within a professional unbranded business centre
- Dedicated office to accommodate 5 desks
- Dedicated meeting room
- 12 month term with flexibility to extend
- Fit out and furniture costs £0
- Annual all-inclusive rent £37,800
The obvious choice in this scenario was to adopt the serviced office. Clearly there are significant cost savings, however the benefits are not just monetary. By selecting a serviced option the client also benefits from:
- Flexibility to move office and location as the business grows
- Invest £10,500 capital in growing their business
- Utilise business centre staff for reception greeting and call answering
- Eliminate time managing suppliers through an all-inclusive package
- Portray a corporate image to clients and visitors