There will come a time in the life span of any new company when they will have to consider their first business premises and this is one of the most important decisions that can be made in the early stages of any company.
London offers phenomenal advantages and services to businesses of all sizes. It is served by five major airports, European rail networks, Underground network and is at the centre of a vast motorway network. London is the nerve centre of business in the UK, a driving force of the economy with virtually every business facility you care to think of.
A London business address carries a significant amount of weight in clients’ perceptions of your company; a London business can appear more dynamic than a similar one that is located in other regions of the UK. One question, and especially in today’s economic climate – is whether to rent or to buy?
While buying commercial business property can eventually lead to your business having some collateral, it can also present a number of hire bodyguard chauffeur driver in London problems that are not experienced by those who choose to rent; initial outlay being the first. In order to secure buying a business space, you are going to need a lump sum to put down and, very possibly, a commercial mortgage.
Rental offers you the freedom to view substantially more available premises and move into your choice, without the worry that your investment is going to affect the company’s profitability. In addition, as has been proved in recent months, bricks and mortar are not guaranteed to retain their worth.
An important part of any business is the monitoring and control of cash flow; renting office space generally allows greater flexibility and fluidity. As the recent economic downturn has shown, mortgages are subject to the fluctuations of interest rates, whilst rents are usually fixed for a minimum of 5 years – and of course, there is always the consideration that you may find it hard to borrow at all in the current climate. In London, due to the fact that many offices face the prospect of becoming unoccupied as a result of a series of redundancies, the supply of office space is beginning to significantly outweigh the demand. The result is that landlords are already being forced to drop their rents, meaning that there are a number of rental bargains waiting to be snapped up in the capital – with the likely possibility of more to come.
London’s stagnant property market also means difficulty for the owners of business space who may want to move. For a tenant, it is simply a matter of giving notice at the right time, finding new premises and moving on.
If a company who own the office space find their business expanding and the space they own insufficient, the current climate in the capital presents a huge hurdle; how are they going to sell the property? If they are lucky enough to do so at the moment, it could be at a loss.
London’s facilities have enticed and supported businesses for hundreds of years. The current economic climate in the capital has turned the odds in favour of the tenant and it looks to remain that way for some considerable time to come.
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