Lack of Cheap Offices to Rent in London has Companies on the Move
A new trend shows that due to a lack of cheap offices to rent in London, companies are now moving to smaller UK cities.
Larger firms are increasingly moving their offices to other cities in Great Britain, such as Birmingham, Belfast and Manchester.
Lower rental prices, easier commuting, and a general easier pace of life are a few of the key factors affecting company decisions.
The Second City
Reportedly Birmingham rental prices are nearly 50% cheaper than similarly cheap offices to rent in London. Marketing Birmingham, a marketing company that works to raise the profile of the city’s private and public sector, is aiming to attract government departments and public sector companies to the city.
Marketing Birmingham believe that firms moving to the city would be beneficial for everyone, simultaneously raising the profile of the city and providing cheaper rent for the companies.
“The fact that office costs in Birmingham are effectively half the cost of London means there may be opportunities in the future should some of the functions of these departments be relocated,” commented Neil Rami, chief executive of Marketing Birmingham.
Not so Fast
However, some companies would argue that a lack of cheap offices to rent in London in not worth moving out of the capital.
“The biggest hurdles are firstly that you cannot earn as much here as in the City, even though the cost of living is cheaper, and secondly that there’s not yet the calibre of investment banking roles you will find in London,” commented Nick Price, managing director of Edinburgh based IT recruiters Bright Purple.
Only time will tell if other cities begin to attract more tenants following the lack of cheap offices to rent in London; several high profile leases are due to end within the next few years and the advantages of leasing in smaller cities might have firms considering a move.