Cost Comparison

The following is a comparison between renting a good quality serviced office in the West End and the real cost of leasing conventional space to accommodate 6 people initially, expanding to 10 people over a 2-year period.

First 6 month period	Total Cost
Typical serviced office space for 6 people
Monthly inclusive rent £5,400 incl. 256k bandwidth per desk	£32,400 (month 1-6)
Second 6 month period
Typical serviced office space for 8 people
Monthly inclusive rent £7,200 incl. 256k bandwidth per desk	£43,200 (month 7-12)
Third 6 month period
Typical serviced office space for 9 people
Monthly inclusive rent £8,100 incl. 256k bandwidth per desk	£48,600 (month 13-18)
Fourth month period
Typical serviced office space for 10 people
Monthly inclusive rent £9,000 incl. 256k bandwidth per desk	£54,000 (month 19-24)
Total cost over 2-year period	£178,200

Conventional space for up to 10 people	Sq Ft.
100 sq. ft. per person	1000
Reception / Meeting Room / Kitchen /Comms. etc.	750
Circulation (corridors) = 15% of above	260
Total (rounded down)	2000

Conventional Costs	£/Sq. Ft.
Rent	50
Less rent free period – 6 months	(25)
Rates	18
Running cost (AC/electricity/maintenance etc.)	12
Fit out costs (£50 psf amortised over 5 years)	10
Total cost per sq. ft. average over 2 years	£77.50
Annual Cost Year 1	£130,000
Annual Cost Year 2	£180,000
Total occupational costs over 2- year period
Conventional occupation cost over 2 years	£310,000
Total cost of serviced offices over 2 years	£178,200
Saving	£131,800
Saving (%)	43%

Cost Comparison

Leasing space from Executive Offices Group is extremely cost effective when compared to the real cost of leasing, fitting out and running a conventional space of equivalent quality.

The main benefits can be summarised as follows:

Flexibility
Business plans are often unreliable, and therefore leasing a fixed amount of space for at least 5 years can be risky. At Executive Offices Group, our flexible approach enables companies to lease the amount of space they require and subsequently tailor the amount of space and length of stay to suit their changing needs.
Speed
Subject to availability customers can be fully operational within days, instead of months, with minimal capital expenditure.
Overheads
Executive Offices Group employ a Receptionist, switchboard operator and business support staff, saving customers expensive and inflexible staffing costs.
Management time
It can easily take 6 months to find, secure, equip and occupy conventional office space. This period will be very management intensive. Additionally, to effectively operate conventional office space, third party contracts will need to be negotiated and managed to include IT, Security, Facilities Management and Catering.
Cost
The cost comparison above demonstrates that you can save £131,000 over two years by leasing a serviced office instead of a conventional office of similar quality. It is worth noting that in addition, these figures do not account for a Receptionist, the time involved in finding, leasing, fitting out and equipping a conventional office, or the legal costs and stamp duty incurred when negotiating a lease instead of a simple serviced office agreement.