Member Article

The alternative serviced office locations for entrepreneurs seeking value in London

For start-ups and businesses looking to scale up or down, the cost of your office is often the key consideration when searching for new office space, be it co-working or serviced offices. It can also be quite an overwhelming task if you are not familiar with a city, area or the type of space that is available. Workthere’s guide below outlines the locations in London that offer a good value alternative to the more traditional office locations.

Borough (alternative to Southbank)

Southbank has increased in popularity over recent years, particularly given it has seen a substantial rise (105% year-on-year) in venture capitalist investment into start-up companies located in this area. However, a lack of new office supply coming to the market in the last 12 months has resulted in a growing supply / demand imbalance, inevitably impacting serviced office rents, which have risen between 15-30% per person per month.

Situated just 10 minutes’ walk from London Bridge or one stop on the Northern Line, Borough is a great alternative to Southbank and offers a variety of great local amenities, including Mercato Metropolitano, a very popular Mediterranean marketplace. With some recent new office spaces adding to existing stock, Borough provides some great value alternative spaces to those around London Bridge and Waterloo, with prices around 20% cheaper per person per month.

Angel (alternative to King’s Cross)

King’s Cross, one of the principal homes for Google, has become the new employment destination for London, boasting both superb green space and an outstanding food and beverage offer.. These contributing factors have generated a significant premium with serviced office rents rising to levels between £800 and £900 per person per month.
Angel, just one stop along the Northern Line, offers a competitive alternative with serviced office space priced at around 60-70% per person per month less than the price of the average serviced office in King’s Cross. It also provides a vibrant mix of different bars, restaurants and cafes, making it one of London’s most popular areas to live.

Aldgate (alternative to Shoreditch and Old Street)

Shoreditch and Old Street Roundabout remain the ‘kings of tech’ and are home to most start-ups in London with serviced office rents ranging from £650 to £850 per person. However, Aldgate is increasingly proving an attractive location for those businesses seeking more value for money when it comes to their office. Situated just south of Shoreditch and close to Whitechapel, Aldgate now offers a great range of amenities with a variety of popular local restaurants.. In the last year several new providers have opened as and Aldgate is increasingly becoming a very popular location for start-ups and scale-ups. It is a great option for those businesses that don’t want to comprise on quality with serviced office rents typically 30-35% per person per month cheaper than Shoreditch and Old Street.

Victoria (alternative to Mayfair)

Mayfair remains the most expensive serviced office market in London, with prices usually north of 1k per person per month. In the past 12 months Victoria has established itself as an excellent alternative, offering larger spaces as well as considerably lower rents, which are generally 35-40% cheaper per person per month.

In addition, Victoria is seeing major regeneration around the station as well as with a variety of great bars and restaurants. For hedge funds or private equity companies seeking a more vibrant location than the traditional Mayfair, Victoria is a great alternative.

Vauxhall (alternative to Victoria)

If Victoria is still a little too pricey, then Vauxhall is another great option. It is only two stops from Victoria and the development around Nine Elms is really beginning to take shape. Last year, Apple announced its new HQ at Battersea Power Station, joining the US Embassy south of the river. With a selection of new providers entering the market in 2018, it is a great time to get ino the area.

The City (alternative to Shoreditch)

This might seem a strange suggestion as the City is considered one of the foremost and traditional office markets in the world. However, Shoreditch and Old Street are now so popular with start-ups that rents in serviced office space have overtaken those in the City. The City has a significant amount of supply going into 2018 with many new centres opening around Bank, Liverpool Street and Monument in 2017. The result is that serviced office rents in the City have remained, if not dropped, a little over the past year and the market now represents great value compared to some of the other popular sub-markets in London. We are therefore seeing some start-ups and scale ups who moved to Shoreditch move back to the City to take advantage of lower rents.

This was posted in Bdaily's Members' News section by Workthere .