- Extra costs to consider:
- Business rates
- Service charge
- Buildings insurance
- IT & telco installation
- IT & telco monthly charges
- Office cleaning
- Legal fees
What’s the difference between leases, sublets and workshop units?
A traditional office lease is formed when a tenant rents directly from a landlord, who agrees rights to their property for a period of time according to certain conditions. All the different costs associated with occupying the property are organised, managed, and paid direct to the relevant recipients by the tenant.
Such leases are sometimes preferred by larger-sized organisations who already own their own furniture, IT and Telco systems, and are confident that their company will have a consistent headcount for at least the next three to five years.
Over the longer term a lease can sometimes be more cost-effective than other types of office solutions, but be prepared that it can be very time consuming to negotiate terms and fit-out the office space. Always have a solicitor to act on your behalf.
A sublease is formed when a freeholder has granted a lease to a tenant, and that tenant then grants a secondary lease (with freeholder’s permission) to a third party – a subtenant. This subtenant might also be permitted to sublet to another, and so on. Chains of tenancy can therefore be complex! Usually all subtenants will be bound to the original terms of the first lease, and these are non-negotiable.
Subleases are sometimes packaged in a similar way to a serviced office (i.e. the office space might be furnished, with IT provision, have shared meeting room facilities and be offered for an all-inclusive monthly rent), or they might be offered on the traditional rent, business rates, and service charge basis.
Taking a sublease can be cost effective – even in the short term, but do remember that they can be hard to find, and involve taking the office and lease ‘as is’. Formalising the agreement can also take a substantial amount of time because of the complexities of the arrangement, and we would always advise that you have a solicitor act on your behalf.
Workshop and industrial units are exactly as the name suggests! Instant markets a significant number of both types, many of which have features like roller shutter doors and goods lifts pre-installed. Some of these units can offer part-office/part-workshop solutions too. Usually the financial arrangement is similar to taking a regular lease, although more flexible terms are often possible.
We would always advise that if you decide to take a lease, sublet, or workshop unit that you always have a shortlist of serviced offices to fall back on should anything go wrong during the final stages – as there are so many points to negotiate!
How will Instant help you find the perfect flexible office solution?
We always aim to find the best solution for you, and we are objective and comprehensive in our advice. Our service is unmatched in terms of our local knowledge and global coverage, so wherever you need to be we can help. Put us to the test.
Step 1: Discuss your requirements
Let us know where you want to be, how much space you need, and when you want to move by. You can either search online or call us to speak to one of our experts now. Either way your consultant will help you shortlist the right options quickly.
Step 2: View the properties
We arrange the viewings for you. You can look at lots of options or just one. We’ll send you a map for all the properties we arrange for you to view, and we’ll talk to the building manager about your requirements beforehand so you get the most out of your visit. Our job is to make it as quick, easy, and convenient as possible.
Step 3: Negotiate a deal
Once you have chosen the perfect office for your business, we’ll help you negotiate. Our consultants get the best deals in the market, which means you do too.
Call us now for further assistance on 1-866-918-4640