Despite the crash of the global financial markets in late 2008, London remains a truly global city, both in terms of the vast numbers of cultures to be found and the fact that it is one of the world’s powerhouses for doing business.
As such, it is very easy for people, whether they be individuals or businesses, to pay over the odds. However, while individuals and families complain about London’s sky high rents, for businesses there is more scope to find a reasonably priced building.
Commercial property in London does of course vary, and depending on what your company does you may need to look for something very specific. But that doesn’t mean there aren’t opportunities to get a good deal.
Think outside of the box
Towns and regions of London ranging from outer central London to the fringes are full of empty shop spaces, which could be ideal for lots of businesses. Ask yourself if your business needs to be in the City of London – if it doesn’t, consider an area that is outside of zone one but that is still well connected to other parts of town by the tube or buses – it might well be a great opportunity for a good deal on commercial property.
Ask yourself questions, and plan ahead
Don’t just choose a property that looks good. Think about all the practicalities too. Will you need a parking space, or even if you don’t, will you need to take regular deliveries? If so, a spot on Oxford Street may not be your best bet.
How will your company look in five years’ time? It’s important to plan ahead when choosing commercial property in London, just as when starting a family and choosing your first family home. Think about how the business looked five years ago and compare it to today – will your business grow at the same rate? It may well be more cost effective to rent a slightly larger office or commercial space than you need today, but that will be ideal in five years’ time, than to have to suffer the consequences – and the related costs – of having to move again in five years’ time.
Running Costs
Rental prices will obviously come high on your list of priorities, but what of the other financial implications? Does the property come furnished? Will you have the ability to change the layout or accommodate more employees? Is everything up to date? Implementing a new IT system can prove costly and the energy costs of the property cannot be overlooked. There are also fees associated with the move itself – legal, removal and insurance.
London offers excellent opportunity for companies to make their mark and to grow – but choose the wrong commercial property and you may well be throwing potential profits away.
For more advice or to view Pearl & Coutts’ current selection of commercial property in London, visit their website.
