If your serviced office agreement ends in the next few months, now is the time to decide whether to renew or relocate. Most operators need three months’ notice, so leaving the decision late can mean renewing on whatever terms you’re offered.
The good news is that you’re in a strong position. Here’s how to work out whether staying or moving is right for your business, and how to get a better deal either way.
Start three months out
Most serviced office agreements need about three months’ notice. That’s also roughly how far ahead other spaces can be secured, so it’s the natural point to compare your options.
If your agreement ends in February or March, that means starting the conversation now, before the end of year slowdown.
Why renewal offers deserve a closer look
Renewal prices can move a lot. One client came to us after their year two renewal came in at double what they were paying. We went to market and presented four alternative options. They toured two, and we negotiated a great price on a 24 month commitment, locking in that rate for the next two years.
That isn’t a criticism of operators. Pricing moves with demand, and your renewal reflects the market at the time. But it does mean the first renewal offer isn’t always the final one, and it’s worth knowing what’s available before you reply.
Questions to ask before you decide
Does the space still fit how your team works? Look at how often people are in, whether you’re short of meeting rooms or have desks sitting empty, and whether the location still suits your team’s commute.
Has your team changed size? If you need more or fewer desks, both renewing and relocating can account for that. Your current operator may be able to move you to a different office in the same building.
What is the market doing? Prices and availability in your area may have moved since you signed. A comparison shows whether your renewal offer is competitive.
What would moving actually involve? With a serviced office, moving is far simpler than with a traditional lease. There’s no fit out and no furniture to move, so the main costs are time, disruption and a new security deposit.
Renew or relocate: side by side
| Renew | Relocate | |
|---|---|---|
| Disruption | None | A move day and some set up |
| Cost to switch | None | Usually a new security deposit |
| Price | Depends on the renewal offer | Set by the new space and market |
| Fit | Same space, unless you change offices in the building | A chance to find a better fit for how you work now |
| Best when | The space still works and the price is fair | The space no longer fits, or the renewal is well above market |
How to get a better deal either way
Know the market before you negotiate. A renewal conversation goes very differently when you know what comparable offices nearby cost.
Negotiate more than the rate. Term, inclusions, meeting room credits, flexibility to add desks and the price at your next renewal can all be on the table.
Agree the next renewal price now. If you renew, ask for the following renewal price to be set in the agreement, so you’re not in the same position next year.
Don’t leave it to the last week. The closer you get to your notice date, the fewer options you have.
Lock in a good rate for longer. If the price is right, a longer commitment can protect you from big jumps at the next renewal.
How we help, whether you stay or go
If you’re thinking of staying, we’ll give you independent advice and a clear picture of the market, so you can negotiate your renewal with your current operator from a position of strength.
If you’re open to moving, we’ll go to market for you, present options that genuinely fit, arrange inspections and negotiate the terms with your new operator.
Sometimes staying is the right answer
Relocating isn’t always better. Often the honest answer is that where you are is the best option, and with some negotiating it can work even better. The point of comparing is to make the decision with the full picture, not to move for the sake of it.
Frequently asked questions
How much notice do I need to give on a serviced office? Most operators need around three months’ notice. Check your agreement, as it varies.
Can I negotiate a serviced office renewal? Often, yes. You negotiate directly with your current operator, and rate, term, inclusions and the next renewal price can all be discussed. Knowing what comparable offices cost puts you in a much stronger position.
Is it expensive to move serviced offices? Usually not. There’s no fit out or furniture to move, so the main costs are a new security deposit and the time spent moving.
When should I start looking at other options? About three months before your agreement ends, which is when your notice period starts and other spaces become available to secure.
Is your renewal offer competitive?
We’ll compare your current space, rate and inclusions with what’s available today, so you can decide with confidence. No obligation to change anything, and our fees are paid by the operator or landlord, not by you. Request an obligation-free market comparison.