The rise of office space consolidation deals

As London office rents remain at a significant high as compared to other potential locations, an increasing number of companies are consolidating their operating bases into a single property – but why?

It was previously thought that a diverse number of working locations would show market prowess and allow for increased flexibility with clients and whilst this might still likely be the case for a number of industries, such as property development or estate agents, it is simply not a particular requirement for other companies.

As internet becomes faster and there is a great importance placed on virtual desktops and online networking, an office consolidation is an ideal way to maximise working potential and minimise overhead costs.

Rather than paying separate bills for different facilities and potentially leaving usable office space empty, consolidating an office would allow bills to be managed more easily and also allow the company to spend more on a single grade A accommodation rather than balance a budget in inferior properties. This can be even more beneficial when selecting serviced offices as this will simplify all accommodation and tenant running costs into a single bill.

Whilst it might appear that boasting a number of offices in differing locations such as Coventry, Birmingham and Newcastle, a single lease in a high quality property such as the Shard or Tower 42 would hold even more importance. A possible downside, however, is simply the sheer competition for these prime locations, which can force smaller companies out.

Essentially, with careful planning and eagerness, the majority of companies will be able to find a prime space to consolidate operations into, saving a large amount of money and also increasing productivity and communication.