The government’s Enterprise Zone initiative continues to lay foundations, construct extensions and build paths to economic recovery across the UK. The Royal Docks in East London is the latest area assigned Enterprise Zone status, with providers of serviced offices ideally placed to take advantage.
Following lengthy negotiations between the coalition government and Boris Johnson, the Mayor of London emerged proudly to announce, ‘Now, with the financial and regulatory breaks granted as an Enterprise Zone, there will be even greater incentives for new businesses to set up shop and create a thriving new centre of enterprise in this important corner of the capital.’
One of the most famous examples of a dilapidated dockside area transformation is Canary Wharf, where current demand for serviced offices exceeds the demand for Bollinger among bankers at bonus time. Figures recently released showed a 97% occupancy rate, with property value up 4.1% to £4.91bn.
With the Olympics literally around the corner, Canary Wharf Group CEO George Iacobescu is reported to be exploring new serviced offices and retail developments in London, heralding the Enterprise Zones as a ‘fantastic idea’.
Serviced offices located in the historic Royal Docks area will be able to attract businesses by offering incentives such as relaxed planning and reduced business rates for five years, and income from the latter will go into a development fund to reinvest in the area itself.
The go-ahead has already been given for a 24-storey £80m development on the Docks, comprising residential flats, commercial and serviced offices, with work due to start in summer 2011.
Chancellor George Osborne has placed the Enterprise Zones at the forefront of his attempts to boost the economy, outlining plans during the recent budget for twenty-one such zones across England.
Serviced offices providers in Croydon and Tottenham will be closely monitoring developments following the Mayor’s request that they too be granted Enterprise Zone status; a decision on this is due from the government in the summer.
