Have you seen The Telegraph’s recent article on Ofgem?
It reveals that fewer than a third of Ofgem employees are working on-site regularly, yet the organisation is spending ‘£3.5 million’ a year to maintain an almost-empty office space.
If you haven’t read it yet, here is the full article ➡️https://www.telegraph.co.uk/money/bills/energy/ofgem-blows-35m-year-on-empty-office
The article raises an interesting question – For how long should a company spend £3.5 million a year on a nearly empty office?
Consider a 10-year lease:
- With rent and service charges at £3.5 million per year, plus an estimated £2 million in rates, we’re already at £5.5 million annually.
- Factoring in potential rent increases over time, this could climb to £6 million a year.
Over 10 years, that’s around £60 million—and that’s before including at least £2 million in dilapidations costs at the end of the lease.
No one has all the facts, but it certainly gives us something to ponder about.
If you would like to find out how we can help your organisation, then please contact us below.
