Why it is Worth Considering a Smaller Office Space

We understand that finding a new office space in London can feel overwhelming. The market is brimming with incredible buildings, iconic locations, and postcard-worthy views. It’s easy to fall into the trap of thinking you need the biggest space in the best location to succeed. And while a good location is always important, in our experience, bigger isn’t always better. Larger spaces come with higher costs, and many end up underutilised.

With businesses embracing flexible working patterns, office footfall now fluctuates daily. This means large offices often have numerous empty desks, creating wasteful costs. In fact, many clients overestimate how much space they need, only to later realise they’re paying for areas they hardly use. All this to say, cost efficiency is just one of the many reasons that you shouldn’t discount the smaller office space options.

Cost Efficiency

The cost savings of a smaller office space are immediate and multi-layered. Naturally, rent is lower because you’re paying for less square footage. But the savings don’t stop there. You’ll likely have reduced operational overheads; lower utility bills, reduced insurance premiums, and possibly even exemptions from stamp duty or business rates. Our team at Kontor can help you navigate these details to make sure you’re not leaving money on the table. These savings free up capital that you can reinvest elsewhere in your business. Plus, if you outgrow the space, you’ll have less money locked in deposits, giving you more agility when it’s time to upgrade.

Maximising Productivity and Collaboration

A common goal when choosing an office is to boost productivity and teamwork. Surprisingly, smaller spaces can be an asset in achieving this. When team members sit closer together, informal conversations happen more naturally, which fosters collaboration and problem-solving. In contrast, large offices with empty desks often feel lifeless, leaving employees uninspired and disconnected. A compact space ensures the office feels lively, helping people stay engaged and motivated when they do come in.

Flexibility and Scalability

For growing businesses, flexibility is key. Smaller spaces often come with shorter contracts, break clauses, and more adaptable terms, giving you the freedom to scale at your own pace. Many serviced office providers also offer the option to move within their buildings within your existing contract; whether that's to a larger office within the building or even within the wider portfolio across multiple buildings.' This means you can upgrade to a larger space necessary, without being locked into rigid long-term agreements. In many cases, you’ll even have “first refusal” on available spaces before they hit the market.

Sustainability

Sustainability is more than a buzzword, it's becoming a critical factor for businesses and their investors. A smaller office means less wasted space and lower energy consumption, helping to reduce your environmental footprint. Opting for an office that fits your actual needs signals to environmentally conscious investors that you’re making thoughtful, responsible decisions. 

Customisable and Optimised Design

Modern design techniques mean smaller offices can be just as functional as larger ones. Open-plan layouts, modular furniture, and hot-desking options allow you to optimise every inch of your space. Given today’s flexible working patterns, it’s unlikely that every team member will need a desk every day. You can design your space to align with average attendance, using meeting rooms as overflow workstations when necessary. Smaller offices are also easier to equip with the latest tech infrastructure, creating a smart, streamlined environment without the need to spread resources thin.

Location, Location, Location

With London’s competitive office market, securing a prime location can feel like an uphill battle. However, choosing a smaller office may give you the upper hand. A compact space could land you that prestigious address or central location that would otherwise be out of reach. And let’s face it: most employees won’t mind a smaller office if it means being based in a well-connected area with great transport links. A convenient, central location can also make a big difference in attracting talent and clients alike.

Don’t just take our word for it

One of our tenant advisory team, Leo, recently placed beauty and wellness brand Germaine de Capuccini in their new London office space. When they initially began the search, they were looking for a space with room for around 16 desks. After viewing some serviced offices with Leo, they quickly realised that they didn’t need quite as much room as they initially thought. Being within a serviced building meant they were able to use the providers' communal space and amenities to supplement their private space. This removed the need for breakout space, meeting rooms, and phone booths within their space, and allowed them to take a smaller space and utilise their square footage for desks. In the end, they took an office around 40% smaller than they initially wanted. 

Ready to find the right office space for your business?

If you’re reading this, and think you might have taken a space that is bigger than you need, don’t panic. Things change and what works for you at one point may not work for you in a few months or years. We see this from time to time, and have found that most landlords are open to allowing a tenant to sublease their unused space. If this is something you would like to look into, we are happy to negotiate this with your landlord to ensure both parties are happy. Once we have their permission, we can open your space to the market, and (subject to interest) find yourselves a new tenant to fill it. 

At Kontor, we’ve spent over a decade helping businesses of all sizes find office spaces that work for them; not just for today but for the future. Whether you're downsizing, upgrading, or simply looking for a smarter solution, our experts are here to guide you every step of the way. Contact one of our team members today to discuss your requirements, and let us help you find the perfect space to grow your business.