Location is in most instances the deciding factor before even starting the search for a new commercial premise.
In most instances companies want to be surrounded by others in the industry, and one that suits the nature of their product. In most instances a creative agency won’t want to find themselves in the heart of the City next to an insurance broker, and vice versa. As well as certain locations favouring certain occupier types due to the associated industries of the area, there are also significant differences in the type of space they offer, amenities and infrastructure.
Our specialist area for commercial property, the City fringes, tends to attract the creative and media based companies often referred to as the TMT sector (Technology, Media and Telecommunications). When getting to know companies within this sector they have a number of shared reasons behind locating to this area. Certainly in comparison to West End prices the rents offered are far more reasonable. The social scene in Shoreditch and Old Street, with its array of independent and quirky bars, restaurants and shops, also appeals to the demographic of the more creative industries. After all the majority of businesses locating to the areas are predominantly made up of those in their 20s and 30s that all enjoy the social and cultural synergy on offer in the area.
The recent improvements to the local infrastructure have opened up Shoreditch, with the Shoreditch Overground making travelling East and South far easier, opening up the proximity to a broader range of potential industries. This has led to an increased demand but adversely has given rise to established companies relocating to areas further East/South where the rents are at a level Shoreditch might have been at five years ago. Areas such as Haggerston, Whitechapel and Dalston are all within 5-10 minutes on the line to Shoreditch, but commercial rents are almost 50% less. We are finding an increasing demand for commercial property here and we will see the local areas vastly improve on the back of it.
Brett Sullings, Stirling Ackroyd Commercial