So, you’re thinking about opening a coworking space in London? Great! Coworking spaces are becoming more and more popular as people increasingly work remotely. But before you get too ahead of yourself, it’s important to understand the costs involved in opening a coworking space. In this guide, we’ll go over the biggest expenses you’ll incur when opening a coworking space in London.
Rent
The average office rental rate in London is £32 per square foot. For a 3,000 square foot space, this would amount to £96,000 per year in rent. The average deposit for commercial leases in London is 6 months’ rent. Therefore, for a 3,000 square foot space, you would need to put down £48,000 as a deposit.
There are a few other things to keep in mind when budgeting for your rental space. The first is business rates. In the UK, business rates are a tax on non-residential properties that is paid to the government. The amount you will pay in business rates depends on the value of your property and the area it is located in. In London, business rates can range from £0 to £100,000 per year.
Another cost to consider is service charges. Service charges are fees that landlords charge for maintaining the building and common areas. These fees can vary depending on the size of the property and the amenities included. For a 3,000 square foot space, you can expect to pay around £10,000 per year in service charges.
Lastly, you will need to factor in utilities. This includes costs for electricity, water, and gas. Depending on usage, these costs can range from £500 to £5,000 per month.
In total, the annual cost of renting a 3,000 square foot coworking space in London would be around £160,000. This does not include the cost of furnishing or fitting out the space, which we will discuss next.
Fit-out costs
The average cost of fit-out for a coworking space is between $50 and $100 per square foot. The cost of fit-out will depend on a number of factors, including the size of the space and the type of finishes chosen. Fit-out costs can be reduced by working with a smaller space, opting for less expensive finishes, or doing some of the work yourself. It is important to factor in the cost of permits when budgeting for fit-out costs.
Transitions can be used to show addition, contrast, similarity, or time.
For example,
- addition:Additionally, there are a number of ongoing costs to keep in mind, such as utilities, insurance, and cleaning.
- contrast:However, the cost of fit-out will depend on a number of factors, including the size of the space and the type of finishes chosen.
- similarity:Similarly, the cost of furniture will also depend on the size of the space and the type of furniture chosen.
- time:Fit-out costs can be reduced by working with a smaller space, opting for less expensive finishes, or doing some of the work yourself.
Furniture
When it comes to furnishing a coworking space, there are a few options to consider. The most important factor to keep in mind is functionality. Aesthetics are also important, but should not come at the expense of comfort or practicality.
One way to save on furniture costs is to buy used or second-hand items. This can be a great option if you are on a tight budget. However, it is important to inspect each item carefully before making a purchase. Make sure that the furniture is in good condition and that it will meet the needs of your coworking space.
Another option is to source furniture from local businesses or makers. This can be a great way to support the local economy and find unique pieces that reflect the character of your space. Additionally, many small businesses are willing to negotiate on price, so this is worth considering if you are looking to save money.
