Being located in central London is not a necessity for business and there is plenty of good value and excellent quality commercial property space available outside the central business districts.
This is according to, a member of the British Council for Offices. Established in 1990, the British Council for Offices is Britain’s leading forum for the discussion and debate of issues affecting the office sector.
Philip Papenfus, who is also a director at Colliers International, has explained that being located in ‘the city’ should not necessarily be a must.
Papenfus states that there is huge inconsistency in prices across even London, with commercial property space in central London reaching, in some instances, £46 per sqft. Whereas commercial property space in the outer areas of London, such as Heathrow or Gatwick, can be found for just £10 per sqft
On the one hand, a prestigious central London postcode can be of great value to a company, yet in the grand scheme of things may not be totally cost effective. Papenfus has advised that businesses who face this conundrum, should think about relocating certain sections of their staff to a more cost effective location.’ I have met with at least two to three occupiers in the last few weeks who have been saying that they are very likely to be moving non-essential staff out to cheaper locations.’
It is believed that this is the route that many businesses are likely to take. Phillip Papenfus said: ‘There haven’t been that many high profile company moves out of central London, but I think we are very likely to see a lot more of that happening over the next few years as the economy starts to improve.’
Whether or not companies heed this advice when searching for commercial property remains to be seen. It is believed that those who are faring well are always likely to favour the kudos of a prestigious London postcode. However, during the coming months, we could see a number of business moving some departments to London’s outer areas.
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