Opening an office in London can be a hugely beneficial step for a company to take. However, before you can begin reaping the benefits that the capital has to offer, you need to find new premises. In order to ascertain whether a commercial property in London is suitable or not, you will need to ask yourself a few pertinent questions.
The first consideration should focus around the sort of property you require and its location. Would it best to have the premises nearer to the business’s employees, its suppliers or its customers? Alternatively, it may be more important to have the business located close to a transport network, such as rail or road systems. And, importantly, the premises have to be within your budget.
Should you manage to find a commercial property in London that is suitable, it may be prudent to approach your bank manager or at least speak to the firm’s accountant to ascertain the impact that the new premises will have on the company’s budget. Next you will need to negotiate with the landlord to get rental terms that are favourable to you – often a difficult and frustrating process.
On the other hand, you may feel it better to place the whole procedure in the hands of a property expert. A commercial estate agent will have a great deal of experience in sourcing available commercial property in London. Whilst you will have to pay for their services, it is worth bearing in mind that mistakes with property can be extremely costly and have even in some cases resulted in bankruptcy.
A commercial property agent will have resources available that you will not, such as a database of existing and up-and-coming commercial properties in London. They can also help you organise the move within the parameters of your budget, taking into account things that you may have overlooked. Factors such as producing effective relocation plans, choosing suppliers during and after the move and a constant budget report can all be implemented by the appointed relocations manager and contribute towards a smooth and efficient process. A commercial agent can also take care of things like surveyors and solicitors and also ensure that the contract you sign provides you with favourable terms, taking into account factors such as the rent and possible increases, the length of the lease and how easy it is to give it up, to whom the responsibility of insurance falls, who is liable for repairs, service charges, financial guarantees and lease protection. These are all commitments that you can expect to find in an agreement, but a commercial property agent will be able to negotiate terms on your behalf that you may not be able to.
Renting a commercial property in London generally heralds a new beginning for most businesses; to ensure that your rental goes as smoothly as possible and does not affect the operation of the company, it would be prudent to research just what a commercial property estate agent in London can offer you.
In business terms, London offers businesses facilities, services and opportunities far beyond the reach of any other location in the UK. It is facilitated by five major airports, each one leading directly to other major European sources of trade and industry, in addition to its international links further afield. Indeed, Europe is now closer than ever before; with the Eurotunnel, flights and ferry services to a variety of European locations, a business trip across the channel can be undertaken in a single day.
London itself is also serviced by all the major road and rail networks, making the transport of goods incredibly convenient and, in addition, allows delegates to travel to and from business conferences with great ease. Because London has built up and evolved around business, it also offers a broad range of amenities and facilities for the prudent-minded business-owner to take advantage of.
Most people assume that a London address comes complete with a London price tag. Whilst this may have been true in the past, the current economic climate has seen landlords dropping their rents to an all-time low and offering financial incentives to pull potential tenants through the doors. This is the result of the banking industry having downsized their workforces in the face of the credit crunch. Rather than operate a half-sized staff in full-sized offices, many of them have vacated their premises, leaving a surplus of commercial property in London. In turn, this has seen the rise of the tenant’s market, as landlords would rather be receiving some rent, rather than no rent at all.
For those considering relocating to a more prestigious address or taking up commercial property in London for the first time, there has been no better opportunity. In order to ensure that you get the commercial property London has to offer your business – and at the best price – you would be best advised to hire the services of good commercial property agents.
The best commercial property agents in London are likely to be independent, meaning that they will have no loyalty to a landlord or firm; their loyalty is to you, the client. With this established, they can use their powers of negotiation to secure you the best deal. However, negotiating skills are not the sole qualities that make an agent worth their salt. Good commercial property agents will have an insider’s knowledge of the emerging hotspots in London and those that are likely to flourish in the future. For example, the 2012 Olympics will have far-reaching effects in certain areas of London; a good agent would be able to help you draw up a long-term plan that allows you to tap in to any advantages offered by this.
Commercial property agents can also help with more practical aspects, such as deciding where your business should be located, in relation to local amenities. Using this advice, you can be sure that the flow of your business is not interrupted during the process and you may even pick up a new client along the way. They may also have an idea of any proposed changes to the locale, such as future road works or complex developments. All these can have some bearing on where you choose to establish your company.
Using a commercial property agent is a prudent way to stay ahead of the competition and find a business property that serves your company to the best of its abilities.
Despite the economic downturn, the Confederation of British Industry has reported that some businesses are flourishing against the odds and, as corporations reduce the graduate intake for 2009, many entrepreneurs are deciding to set up their own businesses as opposed to searching for jobs that simply aren’t there. Conversely, those businesses not doing so well are streamlining their workforces in order to cope with the effects of the recession. These are all good reasons for a business to consider relocating or finding new business premises.
Anyone looking to expand, downsize or establish their company should first consider the benefits of using commercial acquisition estate agents. There is plenty of commercial property in London – even more so as a result of major corporations downsizing – but the commercial property London has to offer is wide and varied. Using commercial estate agents can help you find the right premises for your business and, even more importantly, at the right cost.
Relocation or expansion can interrupt the flow of business quite dramatically. Even assigning someone to the job of finding new premises is a loss of manpower that many businesses simply cannot afford at this time. Using commercial acquisition estate agents enables a company to continue its day-to-day business whilst someone with commercial property industry-knowledge and expertise can compile and research lists of potential premises and once found, they will then act on your behalf to structure the lease with the most favourable terms possible. Good commercial acquisition agents take the time to understand the company’s structure and needs and will make lists taking these factors into consideration. The lists can then be considered at the most appropriate time.
Commercial estate agents are also well versed in working within the confines of a budget. Whilst looking for commercial property in London, they should also take into account the physical requirements of the office. Unless the office is serviced, they can assist with researching suppliers and ancillary services that will make the process run as smoothly as possible. The information they compile on services such as IT support, security access systems, power supplies and waste disposal, to name but a few will also enable the business owner to build up a clearer picture of the advantages and disadvantages of particular premises with respect to their locations.
Once the office space in London has been decided upon, commercial acquisition agents are extremely knowledgeable about co-ordinating a relocation within a specified timeframe; a job that would be almost impossible for someone within the company to orchestrate. Using a timescale, commercial acquisition agents can factor in certain events at certain times, ensuring that nothing is overlooked as the process gains momentum. The agent can also handle the use of solicitors, surveyors and critically will be responsible for the negotiating process, while senior management need only be party to the absolutely vital details involved, rather than poring over the minutiae of a lease.
Relocating during this economic downturn may be an absolute necessity, either for positive or negative business reasons. Using commercial acquisition estate agents not only allows you to secure the best commercial property London has to offer for your company, it also allows the company to continue its daily business with minimal inconvenience, whilst ensuring that valuable time and money are spent in the most constructive ways possible.
Despite the recent economic downturn and the emergence of alternative market centres across the world, London is still one of the most important business centres on the global stage. Basing a business in London commands a certain amount of kudos and respect and consequently commercial property in London is often at a premium.
However this does not mean that a London address is out of the realms of possibility for any business, and using the services of commercial estate agents who are experts in their field is the best way to source commercial property in London. A good commercial property estate agent will have access to a wealth of knowledge and opportunities that should suit almost any business looking to move into their first commercial property. London is a dynamic and constantly evolving marketplace and its commercial property market is transient, particularly at the moment. This is good news for companies looking to move within the M25 boundary, as it has created a buyer’s market full of bargains and sellers more willing to negotiate terms.
Central London is extremely well served when it comes to transportation. Five airports serve the entire region, including London City Airport, located in the heart of East London’s Docklands area, which has been influential in opening up this relatively poor district to the business community. An extensive road and rail network criss-cross the Greater London area and the legendary Underground system means that getting around the capital is easy, cheap and quick. Commercial estate agents know the importance of a good transport infrastructure to the promotion of business, and will be able to recommend locations that will offer your business the greatest benefits. If your business requires large amounts of storage and has strong international ties, for example, then a commercial estate agent may recommend a location close to an airport or international rail terminal that will fulfil your business needs accordingly.
Commercial units and offices in the centre of London can in cases still command relatively high prices, but looking at locations that are slightly outside the City and West End may turn up more affordable commercial property options. London is far more than just the EC and W1 postcodes and many businesses are looking to the East End and south of the Thames as viable locations. These areas are just as well serviced with transport links as the pricey West End, but offer more choice for companies looking for cheaper commercial property options. Commercial estate agents specialising in these locations will know of hidden gems that could be exactly what your business needs to make that step into the thriving metropolis without going over budget.
In theory, finding commercial property in London should be no different to finding the same type of accommodation anywhere else. However, despite the economic downturn, competition is still relatively fierce and will become ever more so as the focus on London increases as we move towards the 2012 Olympics. By utilising the services of an experienced commercial estate agent, businesses can ensure that finding the ideal location is a smooth process and that they get the most suitable premises available at an affordable price. Despite the undoubted economic downturn worldwide, many businesses are still booming in London, and there are plenty of opportunities for businesses to join in by relocating to one of the most exciting cities in the world.
A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.
‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’
‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’
Typical property prices in Monaco at the moment include a second floor studio apartment at 1,100,000 Euros, a one bedroom apartment in Monte Carlo at 2,150,000 Euros, and a three bedroom two bathroom apartment at 5,500,000 Euros.
As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
One thing that could put the brake on the number of Brits looking to move to Monaco was announced after the magazine’s claims about Monaco real estate prices were published.
The amount of time British tax exiles can spend in their home country is being limited by the British government, and it could impact the British economy, claim a company who specialise in tax haven property and residency.
Up until now a British taxpayer could avoid paying income tax by taking residency in a tax haven such as Andorra or Monaco, and be allowed to spend 90 days a year in Britain before falling foul of the Iland Revenue. Importantly both the day of arrival and departure into the UK didn’t count as a day.
So technically, a tax exile living in Andorra could drive to Barcelona airport for a 7am flight to London, and given the hour’s time difference between Spain and the UK, be comfortably in an office working by lunchtime.
Equally, the same tax exile could leave the London office at 6pm Friday for Barcelona en route to Andorra – and importantly those five days in the UK would count only as three of their ninety day allowance as the day travelling to and from the UK aren’t counted. Which allowed business men and women to commute from the tax havens of Andorra and Monaco thirty weeks a year. Some would do Monday to Thursday and could do that virtually all year and still stay on the right side of the British tax man.
A magazine column in the US has claimed Monaco has the most overpriced real estate in the world, backing up with evidence that typical rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response an on-line Monaco internet site says the American media is wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.
‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’
‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’
Typical property prices in Monaco at the moment include a second floor studio apartment at 1,100,000 Euros, a one bedroom apartment in Monte Carlo at 2,150,000 Euros, and a three bedroom two bathroom apartment at five million Euros.
As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
One thing that could put the brake on the number of Brits looking to move to Monaco was announced after the magazine’s claims about Monaco real estate prices were published.
The amount of time British tax exiles can spend in their home country is being limited by the British government, and it could impact the British economy, claim a company who specialise in tax haven property and residency.
Up until now a British taxpayer could avoid paying income tax by taking residency in a tax haven such as Andorra or Monaco, and be allowed to spend 90 days a year in Britain before falling foul of the UK’s Inland Revenue. Importantly both the day of arrival and departure into the UK didn’t count as a day.
So technically, a tax exile living in Andorra could drive to Barcelona airport for a 7am flight to London, and given the hour’s time difference between Spain and the UK, be comfortably in an office working by lunchtime.
Equally, the same tax exile could leave the London office at 6pm Friday for Barcelona en route to Andorra – and importantly those five days in the UK would count only as three of their ninety day allowance as the day travelling to and from the UK aren’t counted. Which allowed business men and women to commute from the tax havens of Andorra and Monaco thirty weeks a year. Some would do Monday to Thursday and could do that virtually all year and still stay on the right side of the British tax authorities.
According to Reuters, the amount of office space in London lying empty has risen by ten percent since the beginning of 2009, meaning that the number of London offices that are immediately available to rent has risen to in excess of 10 million square feet. There are many advantages for a business looking to lease office space in London and there has never been a better time to find a real bargain.
The reason for this surplus of available London office space can be traced back to the beginnings of the current economic downturn. As banks and other major financial institutions saw the potential results of surfeit lending, they began to downscale and streamline their workforces. As it became no longer viable to have such small numbers of staff in such large spaces, they looked elsewhere for office property or have taken out short-term leases in favour of long-term contracts. In response, landlords decided to reduce the cost of office rental in London in a bid to prevent their properties from standing empty. Many even offered substantial deals in a bid to court custom, such as extended rent-free periods and capital contributions. The Investment Property Forum’s European Consensus Forecast has predicted that rents will continue to be driven down further, by as much as 26.6%. They also predict that there will not be much room for recovery until around 2011, when the beginnings of a recovery are expected.
While this is certainly bleak news for landlords and freeholders, the good news for business-owners is that the market for London office space has turned in favour of the tenant. Grade A office space (the industry’s term for the best of the best) has already fallen as low as £45.00 .0 per square foot, the lowest since 2004. These figures, paint a picture where business-owners will be able to undertake office rental in London for unprecedented prices, allowing them to take advantage of all the benefits of a London office space.
The Royal Institute of Chartered Surveyors has recently raised another factor that could force the prices of renting London office space down even further. It is their belief that the growth for office rental in London could fall to ’sub-inflation’ levels by the end of 2009. The reason behind this is that, with so many offices threatening to become unoccupied, there is also an excess of supply over demand. Once again, this looks set to work in the favour of the tenant. Add this to the fact that there are over 12 million square feet of office space being built in the capital and the future for landlords looks pretty grim.
To take advantage of the low prices and the prime locations, prospective tenants would be well advised to hire the services of a commercial property acquisition agent. Using their knowledge of the property market, they will have the best informed knowledge of the locations that are going to offer the best value for money and their negotiating power gives tenants the opportunity to push falling prices down even further.
While the recession may be spelling bad news for certain pockets of the London office rental market, it is offering opportunities for business-owners that, ultimately can only help to improve the state of the economy at a later date.
