In the past decade office space has become increasingly costly.
This is especially true in London, where office rents rose by 4% in 2014 due an increase in demand. Rents in London have risen on average six times faster in the last four years compared to other urban areas in the country. A phenomenal gap between real estate prices in the capital and the rest of the country now exists.
Counties surrounding the capital have also witnessed spikes in real estate costs, as businesses and commuters try to locate as close to the capital as possible. The most expensive homes and office spaces in the U.K are now to found in what has become known as ‘the commuter belt’.
Increases in the price of retail in London and its surrounding environs leaves businesses with very little options when it comes to purchasing a viable office space.
Other cities are catching up, but London remains the most prosperous city in the U.K – as it has been for centuries. The unfortunate truth remains that there is still a very disparate economic gap between southern counties (particularly south eastern cities) and the north. The Centre for Cities released a report stating that since 2004 the job creation ratio between southern cities and the rest of the country has been 12:1. It is not surprising then that growth in the U.K’s economy is mainly the product of businesses in the south.
This all means that businesses that can afford to be in London are choosing the capital over other U.K cities. Small businesses are increasingly being turned away by this ruthless market and even long established companies are now having to seriously consider relocation.
The law firm Freshfields Bruckhaus Deringer, the product of a merger in 2000 involving one firm that had been set up in 1743, has recently announced it will to move a number of its employees to Manchester as the firm is unable to keep up with the rising costs of London retail. The firm has been based at 65 Fleet Street since 1989. It is now looking to begin a process of relocation starting next year.
Is Leaving London the Best Option?
Businesses situated in the capital are finding their growth stagnated with restricted space and limited office storage solutions.
Many companies are aware that moving offices can be a hassle and disruptive; getting used to a new workspace can take time and it is likely to decrease employee productivity. Employee morale and motivation is also likely to be affected as relocation is often associated with downscaling and instability. Not to mention all the documentation and paperwork that might get lost or muddled during the move.
Frequently it is the storage of this documentation that leads to the move in the first place. If effective records storage procedures aren’t put in place early on cheap office storage solutions can quickly begin to seem unachievable.
Reduce Overheads with Smarter Office Storage & Document Management
Rather than bidding their beloved offices goodbye businesses are choosing to utilise the expertise of an offsite storage facility. By moving their documentation to an offsite facility businesses are able to reduce office storage costs and can occupy smaller, more affordable spaces in London.
An offsite storage provider can benefit businesses in other unexpected ways too by:
- Increasing employee productivity
- Enhancing information security
- Providing efficient record management
- Boosting investor/client confidence
- Improving a businesses’ environmental credentials
- Helping with business continuity
You will find that most competitive offsite vendors have facilities in and around London in valuable locations that businesses are struggling to afford. An offsite facility can be a low cost office storage solution for any business looking to reduce it’s overheads.
Businesses shouldn’t feel restrained by the rising cost of real estate – with smart storage in place they don’t have to be.