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17 July 2018
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INSTANT SURVEY UNCOVERS ‘HIDDEN COSTS’ OF LEASING CONVENTIONAL OFFICE SPACE

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Companies are overpaying for workspace © iStock

2 November 2017 | Herpreet Kaur Grewal


The average cost of flexible office space in the UK per person per month is between £200 and £1,400, depending on location and amenities.

 

Data analysis by office broking service Instant Offices has found that companies of all sizes are overpaying for workspace because of the hidden costs of occupancy.

 

When considering the floor space needed per employee, it can be more than £4,000 more expensive a year to sign up to a conventional leased space compared with flexible space, according to Instant Offices.

 

The UK was ranked eighth for its healthy “entrepreneurial ecosystem” in 2017, compared with 137 other countries, and as approximately 657,790 businesses launched in 2016, it is clear that this nation is a desirable choice for businesses and start-ups.

 

As demand for UK office space is on the rise, business owners are looking at agile ways of working to avoid the hidden costs of traditional leased office space. In 2016, occupier enquiries for flexible workspace increased year-on-year by an average of 20 per cent across the UK, as seen in the UK Flexible Workspace Review.

 

Last year, London held the top spot in the European Digital City Index for the second time in a row. 

 

London was ranked in the top six as one of the most expensive places to rent a desk in the UK, with flexible workstation rates growing 16 per cent in the past year.

 

The dynamism of the tech sector in London has been a key driver in the growth for co-working and mobile, digitally fluent communities. The agile working characteristics of this sector in London has paved the way for co-working markets elsewhere, such as Bristol, Leeds, Manchester and Birmingham.

 

Cost to rent office space in top UK cities:

  •   City                average cost per person
  • London                     £650-£1,400
  • Bristol                       £300-£400
  • Leeds                         £250-£400
  • Manchester            £300-£350
  • Birmingham           £200-£450