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Options for Start-Ups

Options for Start-Ups
15th December 2015

Options for Start-Ups

Start-up companies often require a unique set of circumstances in the property market. As companies without operational experience can have difficulty predicting what their future profit will be, they can have issues committing to a lease straight from a landlord. Some of the challenges the companies face could be 12 month deposit requirements, long lease periods or upfront costs for fit outs and other associated costs for office moves, all needed to invest in growth.

Serviced offices can also prove to be a less than ideal option, as they can price out start-up companies, limit the telecommunication options, and limit branding opportunities in the common parts of the office premises.

This leaves a gap in the market for commercial properties suitable for start-up companies. The main factor that is needed is the plug and play setting, similar to serviced office, however ideally it should also provide the opportunity for branding and promotion, an element more similar to leased options.

Eugene O’Sullivan, Managing Director at Morgan Pryce, said: “Finding space suitable for start-up companies can be a real challenge. Even when you find a suitable space that works for the company, you still need to negotiate a fair agreement with the landlord, for a company that often comes without account history. This requires mutual understanding and trust, between us agents, the start-up client, and also the landlord.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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