Discussion
Hi all
I’m the powerfully built director of a small (very small really) business. Looking to rent first small office premise; spending less and less time in London, more WFH, and home life just isn’t convivial to getting work done. Plus rented office space will provide better connectivity to internet, meeting and breakout space for days when we do have workshops and meeting clients.
I’ve found somewhere that looks suitable, and budget is fine (including rates and all the other bits).
My question. The property is “fine”, in a very small town 1990s decoration kind of way. In order to want to proceed I’d be looking at basic redecorating as a must; nothing radical, white walls, maybe new carpet, and hanging pictures. Presume this falls within the realms of expect to be slapped with a “return to as it was before” cost, which is also fine. But there are some other bits which are more heavy duty; the lighting is awful strip lighting for example, looks like it came from a garage workshop not an office. I’d also need to consider a basic CCTV installation and possibly better locking / alarm.
Aside from the obvious - “read the lease” (which I’m waiting on), and words of advice from PH when it comes to understanding what to expect in terms of improving a space you are renting? Things to know about or avoid?
Thanks in advance.
I’m the powerfully built director of a small (very small really) business. Looking to rent first small office premise; spending less and less time in London, more WFH, and home life just isn’t convivial to getting work done. Plus rented office space will provide better connectivity to internet, meeting and breakout space for days when we do have workshops and meeting clients.
I’ve found somewhere that looks suitable, and budget is fine (including rates and all the other bits).
My question. The property is “fine”, in a very small town 1990s decoration kind of way. In order to want to proceed I’d be looking at basic redecorating as a must; nothing radical, white walls, maybe new carpet, and hanging pictures. Presume this falls within the realms of expect to be slapped with a “return to as it was before” cost, which is also fine. But there are some other bits which are more heavy duty; the lighting is awful strip lighting for example, looks like it came from a garage workshop not an office. I’d also need to consider a basic CCTV installation and possibly better locking / alarm.
Aside from the obvious - “read the lease” (which I’m waiting on), and words of advice from PH when it comes to understanding what to expect in terms of improving a space you are renting? Things to know about or avoid?
Thanks in advance.
You are not alone in your decision, a definite trend in people renting serviced offices at the moment, I suspect even more once we have worked out wether another lockdown beckons. Need a local place to work that is convenient but far enough away from home not to be distracted. Easy in easy out monthly licence agreements mean minimal commitment and generally fitted out to the extent you just bring your laptop.
This sounds more like a a couple of year lease, key things to watch is that all of the improvements you make are unlikely to be worth anything at the end of the lease and some landlords will insist you reinstate it as is. Always ensure you have a photographic schedule of condition before you do anything, agreed in writing by both sides. Sensible landlords will be pragmatic!
Whilst improvements might not be worth anything they will make life that shade more enjoyable, if really dated might be worth asking landlord for a contribution, or rent free period?
This sounds more like a a couple of year lease, key things to watch is that all of the improvements you make are unlikely to be worth anything at the end of the lease and some landlords will insist you reinstate it as is. Always ensure you have a photographic schedule of condition before you do anything, agreed in writing by both sides. Sensible landlords will be pragmatic!
Whilst improvements might not be worth anything they will make life that shade more enjoyable, if really dated might be worth asking landlord for a contribution, or rent free period?
Thanks. I’m not so worried about my improvements breaking… more worried if they make the place burn down. Or if the landlord turns around and takes exception.
Obviously haven’t read the lease yet but just wondering how open or touchy landlords tend to be with small office premises really.
Obviously haven’t read the lease yet but just wondering how open or touchy landlords tend to be with small office premises really.
After relocating the manufacturing part of my business, I sold a small office building and worked from home unless I travelled to the factory.
I then wanted to leave the house for work so rented a small office from a provider ( it wasn't Regus or that level but a large FLEXable and work SPACE company).
It was frankly horrible due in no small part to an external consultant who after me signing a 6 month licence, waited until month 5, despite me pestering about another 6 month licence, to tell me that the rent was effectively doubling or I could go for a 50% on a 3 year lease.
I didn't sign but a few occupiers who had different businesses were stuck as they had staff etc.
This was Pre Covid
I then wanted to leave the house for work so rented a small office from a provider ( it wasn't Regus or that level but a large FLEXable and work SPACE company).
It was frankly horrible due in no small part to an external consultant who after me signing a 6 month licence, waited until month 5, despite me pestering about another 6 month licence, to tell me that the rent was effectively doubling or I could go for a 50% on a 3 year lease.
I didn't sign but a few occupiers who had different businesses were stuck as they had staff etc.
This was Pre Covid
Why not have a sensible chat with the landlord?
What they don’t want is people making changes that devalue the property and/or make it harder to relet.
If you’re proposing genuine improvements be undertaken at your cost then it’s hard to see why they’d not allow them.
On larger units I’ve asked for LL contributions to some improvements (usually carpets) and agreed an allowance from LL to contribute to the work (basically we paid the upgrade over a standard spec to avoid them installing, us ripping out, and putting back at the end). Larger changes have been agreed with LL but subject to remediation at end of lease (they generally don’t want extra walls etc leaving!).
What they don’t want is people making changes that devalue the property and/or make it harder to relet.
If you’re proposing genuine improvements be undertaken at your cost then it’s hard to see why they’d not allow them.
On larger units I’ve asked for LL contributions to some improvements (usually carpets) and agreed an allowance from LL to contribute to the work (basically we paid the upgrade over a standard spec to avoid them installing, us ripping out, and putting back at the end). Larger changes have been agreed with LL but subject to remediation at end of lease (they generally don’t want extra walls etc leaving!).
Powerfully Built Company Director said:
Hi all
I’m the powerfully built director of a small (very small really) business. Looking to rent first small office premise; spending less and less time in London, more WFH, and home life just isn’t convivial to getting work done. Plus rented office space will provide better connectivity to internet, meeting and breakout space for days when we do have workshops and meeting clients.
I’ve found somewhere that looks suitable, and budget is fine (including rates and all the other bits).
My question. The property is “fine”, in a very small town 1990s decoration kind of way. In order to want to proceed I’d be looking at basic redecorating as a must; nothing radical, white walls, maybe new carpet, and hanging pictures. Presume this falls within the realms of expect to be slapped with a “return to as it was before” cost, which is also fine. But there are some other bits which are more heavy duty; the lighting is awful strip lighting for example, looks like it came from a garage workshop not an office. I’d also need to consider a basic CCTV installation and possibly better locking / alarm.
Aside from the obvious - “read the lease” (which I’m waiting on), and words of advice from PH when it comes to understanding what to expect in terms of improving a space you are renting? Things to know about or avoid?
Thanks in advance.
Have a word with your LL and get agreement about the improvements" before you implement the. Some DO take the p155 with insisting on re-instatements. Ours has suggested £500k to remove a lift we had installed for DDA compliance. Both him and we know he's never going to have the lift removed but he's just trying it on. When we moved in it was a bare shell and we spent close to £800k on fitout and now he says he wants the money to strip it back to the "bare shell". Yeah right................I’m the powerfully built director of a small (very small really) business. Looking to rent first small office premise; spending less and less time in London, more WFH, and home life just isn’t convivial to getting work done. Plus rented office space will provide better connectivity to internet, meeting and breakout space for days when we do have workshops and meeting clients.
I’ve found somewhere that looks suitable, and budget is fine (including rates and all the other bits).
My question. The property is “fine”, in a very small town 1990s decoration kind of way. In order to want to proceed I’d be looking at basic redecorating as a must; nothing radical, white walls, maybe new carpet, and hanging pictures. Presume this falls within the realms of expect to be slapped with a “return to as it was before” cost, which is also fine. But there are some other bits which are more heavy duty; the lighting is awful strip lighting for example, looks like it came from a garage workshop not an office. I’d also need to consider a basic CCTV installation and possibly better locking / alarm.
Aside from the obvious - “read the lease” (which I’m waiting on), and words of advice from PH when it comes to understanding what to expect in terms of improving a space you are renting? Things to know about or avoid?
Thanks in advance.
Given what you describe - wouldn't something like Regus or WeWork offer a better solution?
Countdown said:
Have a word with your LL and get agreement about the improvements" before you implement the. Some DO take the p155 with insisting on re-instatements. Ours has suggested £500k to remove a lift we had installed for DDA compliance. Both him and we know he's never going to have the lift removed but he's just trying it on. When we moved in it was a bare shell and we spent close to £800k on fitout and now he says he wants the money to strip it back to the "bare shell". Yeah right................
Given what you describe - wouldn't something like Regus or WeWork offer a better solution?
Depends on the wording. I'd suggest it is worth paying a surveyor on this one.Given what you describe - wouldn't something like Regus or WeWork offer a better solution?
There are some potential statutory defenses.
The best defence is agreeing early on, especially with big ticket items so that one has the option of doing works themselves.
Hi OP
We have done what you want loads - in that we are a small business taking on a tired office etc, we did the same on our current office
New carpets
Lights
Knocked a wall through to create a open space
CCTV
Alarm
New Cat 6 cabling
Normally if its a FRI lease you pay for all the renovation costs, one option is to negotiate a rent free period to offset these costs
You can get the tax to work for renovations as well - but thats out my skills!
We aim to be in buildings for at least 5 years, then you can make the initial investment worthwhile , obviously a longer lease might vary
As above - some landlords are great, some are an utter PITA, pension funds and the Government being the worst!
I'm sure you have already but triple check your potential internet speeds - lots of places in UK have awful connections
We have done what you want loads - in that we are a small business taking on a tired office etc, we did the same on our current office
New carpets
Lights
Knocked a wall through to create a open space
CCTV
Alarm
New Cat 6 cabling
Normally if its a FRI lease you pay for all the renovation costs, one option is to negotiate a rent free period to offset these costs
You can get the tax to work for renovations as well - but thats out my skills!
We aim to be in buildings for at least 5 years, then you can make the initial investment worthwhile , obviously a longer lease might vary
As above - some landlords are great, some are an utter PITA, pension funds and the Government being the worst!
I'm sure you have already but triple check your potential internet speeds - lots of places in UK have awful connections
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