How to Negotiate a Better Deal on Your Office Space

One of the biggest misconceptions in the office market is that the price on the brochure is the price you pay. In reality, almost every office deal is negotiable - and businesses that know how to negotiate consistently get better value than those that accept the first offer. Here is how to approach it.

Understand what is negotiable

Price is the obvious starting point, but it is far from the only lever. On a serviced office you can often negotiate a small rent-free period, a reduced rate for the first few months, a lower price per desk or an upgrade on the suite. On a managed or leased office the negotiating scope is even broader - headline rent, service charge caps, fit-out contributions, break clauses and lease length are all fair game.

Never focus solely on the monthly cost. A three-month rent-free period on a two-year agreement has the same value as a meaningful monthly discount - but providers are often more willing to offer it because it does not set a precedent on their headline rate.

Do your research first

Providers negotiate most aggressively with tenants who know the market. Before any conversation, understand what comparable space in the same area is achieving. If you know that the building across the road is offering equivalent space at a lower rate, or that a provider has had a suite available for three months, you have real leverage.

Knowledge is your strongest negotiating tool. The more you know about the market, the better the deal you will achieve.

Never show your full budget

If a provider asks what your budget is, give a range that sits below your actual maximum. Providers will always aim to meet your stated budget - which means if you reveal your ceiling, that is exactly where the deal will land. Keep some room to move and use it strategically.

Be willing to walk away

The most powerful position in any negotiation is genuine willingness to walk away. If you have identified alternative options and the provider knows it, they have a strong incentive to sharpen their offer. Going into a negotiation with only one option gives all the leverage to the other side.

Use a broker

The most effective way to negotiate better office terms is to use an experienced broker. Brokers negotiate office deals every day, have established relationships with providers and know exactly where the flexibility lies. Providers also know that a broker-introduced client is serious, which often results in a better opening offer.

At Scope Office Search we negotiate on behalf of all our clients as standard. Our relationships with providers across the UK consistently deliver better terms than businesses achieve going direct - and our service is completely free. Get in touch today.