Navigating the London office market can often feel like walking through fog. Prices are obscured by hidden fees, processes are buried in legal jargon, and the definition of “flexibility” varies from landlord to landlord. As a commercial property journalist, I receive hundreds of questions from founders and operations managers who just want the facts, minus the sales pitch.
This article is a definitive FAQ designed to strip away the complexity. Whether you are a startup scaling from a kitchen table or a multinational establishing a London HQ, these are the honest, data-backed answers you need to make your next move.
1. How much does it really cost?
This is the most common question, and the answer depends entirely on the model you choose: Serviced vs. Leased. The mistake most businesses make is comparing the headline rent of a lease against the all-inclusive fee of a serviced office. You must compare “Apples with Apples” by calculating the Total Cost of Occupancy.
| Cost Factor | Serviced Office (Per Person/Month) | Traditional Lease (Per Sq Ft/Year) |
|---|---|---|
| Headline Price | £500 – £1,500 (All Inclusive) | £60 – £150 (Rent Only) |
| Business Rates | Included | Add approx. 40% of Rent |
| Service Charge | Included | Add £12 – £18 per sq ft |
| Utilities & IT | Included | Add £5 – £10 per sq ft |
| Total Monthly Cost | Fixed & Predictable | Variable & High CapEx |
Verdict: For teams under 30 people, serviced offices are usually cheaper cash-flow wise. For teams over 50 committed to 3+ years, a lease may offer lower long-term costs but requires significant upfront capital.
2. What is the process for getting an office?
Speed is the primary differentiator. A serviced office can be secured in days; a traditional lease takes months. Here is the typical timeline for a flexible workspace:
Define your criteria (location, budget, desk count). Use a broker to filter the market efficiently.
Tour 3-5 shortlisted properties. Focus on culture match, natural light, and IT infrastructure.
Agree on the monthly rate, term length, and incentives (e.g., a rent-free month for signing a 12-month term).
Sign the license agreement (simpler than a lease), pay the deposit, and pick up your keys.
3. How much deposit do I need?
Cash preservation is critical for growing businesses. The deposit structure is one of the biggest advantages of the flexible market.
Initial Cash Outlay Comparison (20 Person Office)
Note: Some providers offer “No Deposit” deals for strong covenants or longer terms, while traditional landlords may demand up to 9 months’ rent in escrow if your company accounts are young.
4. Can I pay month-to-month?
Yes. The monthly rolling contract is a staple of the serviced office world. It offers ultimate agility—you can leave with 30 days’ notice. However, flexibility comes at a premium. Landlords prefer certainty, so a rolling contract will typically cost 10-20% more per month than a 12-month commitment. It is perfect for project teams or startups awaiting funding.
5. Do I have to sign up for a long period of time?
No. The era of the mandatory 5-year lease is over for most SMEs. In the flexible market, the average term is 12 months, but you can sign for as little as 3 months or as long as 3 years.
If you are looking at a traditional lease (“Managed” or “Cat A+” space), you can now find terms as short as 24 months, though 3-5 years remains standard to amortize the fit-out costs.
“Don’t sign a lease based on where you are today. Sign a license that allows you to become who you will be tomorrow.”
6. How do I start my journey?
The market moves fast. Inventory changes daily. The best way to start is not by looking at pictures, but by defining your strategy. Determine your “must-haves” vs “nice-to-haves” regarding location, budget, and hybrid working ratios.
Once you have a brief, don’t go it alone. Compare The Offices provides a free service that navigates the entire market for you, negotiating on your behalf to secure incentives you might not get directly.