Affordable Office Space Options For Startups in Aberdeen
In this article we’ll take a look at the options available for a start-up or small business looking for business space in the city of Aberdeen. As well as the options available in terms of the kind of serviced office space provided by AEIP, we’ll take a look at the availability of the kind of workshop and lab spaces required by life science companies, and some of the incubator and accelerator schemes that businesses operating in Aberdeen can take advantage of.
Why Choose Aberdeen?
To begin with, just in case the CEOs of any small business or start-up are reading this and wondering exactly where they should opt to base their business, we’ll outline some of the reasons why Aberdeen represents such an attractive option. To begin with, there is the fact that, according to figures published in The Herald, Aberdeen leads the way across the whole of Scotland when it comes to commercial property investment.
The figures state that investment in the Granite City accounted for almost a quarter (24%) of the total invested in Scotland during the first six months of 2024. Not only is this an impressive figure in its own right, it represents the highest level of investment in the city for the period of January to June since the same period in 2018. It’s based on £181 million being invested during the six month period, up from £78 million in 2023 and an average of £99 million over the past five years.
Aberdeen Infrastructure
Investment at that level tells its own story about the attractiveness of Aberdeen as a place to do business, and a quick survey of the infrastructure and wider economy of Aberdeen and the surrounding region helps to underline why. The infrastructure of the city includes three major ports, an international airport and extensive road and rail links.
The Port of Aberdeen, the main port of the city, is largest berthage port in Scotland. Following a £420M investment in South Harbour the port as a whole is now equipped to deal with projects of any size, a shift marked by the fact that 2023 saw it welcome its first cruise ship, opening up a new era of tourism for Aberdeen and the North East of Scotland. Already, 2024 has seen 49 ships and almost 24,000 guests arrive.
The Economy of Aberdeen
In addition to the foundation provided by the infrastructure present in Aberdeen, the economic indicators, as published on the website Invest Aberdeen, point to a vibrant backdrop for almost any start-up or small business. The Aberdeen City Region is home to 22,170 private sector businesses, and generates 18% of the private sector business turnover of Scotland as a whole, and while much of the embedded prosperity of Aberdeen is based on its position as a hub for the global oil and gas sector, the city and the wider region is now repositioning itself as a leading player in the transition to net zero (via a switch to low carbon projects and activities).
It doesn’t stop with the energy sector, however, since the North East as a whole is a leader in the global food and drink industry – it generates 20% of the food and drink industry output of Scotland as a whole – and is home to one of the largest concentrations of life scientists in Europe, and the largest UK biologics cluster in the UK after Cambridge.
The North East region had its future prosperity and growth bolstered in June 2023, when it was named as one of two new Investment Zones in the country. As a result of Investment Zone status, the Aberdeen area will receive up to £160 million over a ten year period, in the form of targeted investment, tax reliefs and other forms of investment.
Office Space in Aberdeen
According to research published by property experts Savills, the take-up of office space in Aberdeen during the third quarter of 2024 totalled 118,000 square feet, 42% higher than the five year average for this particular quarter. In terms of supply, the third quarter of 2024 saw totals up 4% on the previous quarter. Over the first half of the year as a whole, however, the vacancy rate in office space across Aberdeen dropped by 17.2% on the previous quarter, something which helps to underline how much demand there is for that space.
The Available Options
The office space available for start-ups and small businesses in Aberdeen falls into two distinct categories – leased office space and serviced office space.
Leased office space
Leased office space is what might be thought of as the traditional form of rented office space. As a tenant, you will rent the space on the basis of a price per square foot and will then have the freedom to shape that space to exactly meet your requirements.
This approach provides the opportunity to design and customise your workspace to perfectly suit your business's unique requirements. Although it involves an upfront investment, the freedom to choose your own furnishings, equipment, and utilities can provide a productive and inspiring environment shaped around the way your team works.
Serviced office space
For many start-ups and smaller businesses the serviced office space option is by far the most attractive. A serviced office space is one which is fully equipped and furnished to be ready to use from the moment the tenant moves in.
As well as the space itself the contract will include the office furniture and equipment, the bills and utilities and any on-going maintenance. For a start-up or small business, this option offers the advantage of being set up ready for you to move in and get up and running immediately.
Here at AEIP, we offer a range of options for clients of every size. For start-ups and small businesses we provide fully furnished, all-inclusive office spaces which range from spaces small enough for a two-person start-up, to those which are suitable for a medium sized business which wants to take advantage of both the collaborative benefits of an office space and everything offered by setting up in Aberdeen. The all-inclusive pricing structure covers aspects of the lease including the following:
- Parking
- Insurance
- Maintenance
- Cleaning
- Electricity
- Security
- Fast fibre broadband
A Flexible Option
One more reason why the serviced office option at AEIP is so well suited for start-ups and smaller businesses is the fact that they come with total flexibility. Tenants can up or down-size with just a month’s notice, meaning that the office space you rent will always reflect both your needs and your budgetary situation. The leases are offered over the longer term or on a short-term basis, with month by month options offered for many of our units. With a fixed monthly fee covering all relevant expenses, smaller businesses will find it easier to budget, freed from the risk of unexpected expenses, and if circumstances change they are free to move on if they want to.
Lab Space In Aberdeen
In addition to traditional office space, the status of Aberdeen as a hub for life-sciences and tech has driven a demand for speciality laboratory spaces. The good news for smaller science-based businesses looking for a specialist working space is that AEIP also provide research laboratory spaces within a science park environment – close to the universities in Aberdeen and with easy access to Aberdeen Royal Infirmary. The life science labs are leased on the same flexible terms as our serviced office spaces, and the spaces can be kitted out as wet labs, dry labs, and computer labs, or as several individual laboratories, with the option of including furnished or unfurnished office space for administration purposes.
Help For Small Businesses
Another good reason for focussing on Aberdeen as a place in which to locate your start-up or small business is the availability of incubator and accelerator schemes. Getting a business off the ground is always going to be a difficult task, and any help – whether in the form of investment, advice or simply a shared space with like-minded entrepreneurs – is going to make things a little bit easier.
The Robert Gordon University Aberdeen runs a Startup Accelerator programme. The programme has been designed to help people turn their ideas and aspirations into viable businesses, through a combination of training, mentorship, incubation space and opportunities for funding. Application and participation are free, provided certain criteria are met (including intending to set the business up in Aberdeen).
Similar options are provided by One Opportunity North East which, as well as offering a private sector loan fund for businesses working in sectors such as food, drink, agriculture, life sciences, tourism, digital, and oil, gas and energy, provides services such as mentoring, sales and customer opportunities and pitching.
Other national options for start-ups looking for help with accelerating and growing their business include Scottish Enterprise, the national economic development agency and Elevator, a social enterprise organisation designed to support entrepreneurship and employability. For more general help and advice, the website Life Sciences in Scotland flags up help in the form of innovation funding (such as the Scottish Enterprise SMART grant) and a range of early stage investment options, such as Archangels and Epidarex Capital.
Location
Although Aberdeen as a whole is a fantastic location for a start-up or small business – for all the reasons we’ve already given – not every part of the city is equal when it comes to the advantages offered. Offices which are based in the city centre, for example, often find it more difficult to provide adequate parking spaces for their employees, while anyone driving into the centre of Aberdeen will also need to look into whether their vehicle is compliant with the Low Emissions Zone – if not, then a fine is payable.
Nor is the LEZ the only reason why employees driving to work in Aberdeen might have to worry about paying for the privilege. The imposition of so-called ‘bus gates’ in the city centre, for example, was apparently intended to encourage people to use public transport, but the scheme has been strongly criticised by local businesses and shops, both of which have claimed that visitors to the city centre have been discouraged by the risk of accidentally landing themselves with a £100 fine.
The offices at AEIP are located close enough to the city centre to be convenient – with easy access to road and rail links – but far enough out to avoid the risk of employees being caught by fines of this kind, or facing the inconvenience of having to plan their journey into work around avoiding said fines.
Office Benefits For Small Businesses
The final reason why finding the right office space in Aberdeen for your start-up or small business is something that would be hugely advantageous is that working in the office – as opposed to working from home – is something which more and more businesses are now placing a focus on. There was a period – in the immediate aftermath of working from home being imposed during the COVID 19 pandemic – when it seemed like working from the office was becoming a thing of the past, but that particular tide has now definitely turned.
A survey published by KPMG, for example, found that 64% of CEOs now think that 100% of workers will be back in the office by 2026. This is a trend backed up by another survey, the Virgin Media O2 Business Movers Index, which found that 52% of UK workers now express a preference for working in the office, with 92% of companies enforcing some form of mandatory in-office policy during 2023, while 40% went as far as reverting to the traditional five day office week. The reasons for this shift back are also contained within the report – 58% of workers cited stronger connections with colleagues as a reason for opting to work back in the office and 55% said that the in-office work environment had boosted their mental health.
Findings of this kind reinforce what most people feel instinctively – communal working in an office space helps to develop a sense of collaboration and shared experience, as well as creating a unified corporate approach through closer communication and a common space. Attributes of this kind are particularly useful for a start-up or small business which is still in the process of developing a mature corporate identity. Put all of this together and the conclusion is clear – the office is the best place for your team, and Aberdeen is the best location for that office.
