London has been a property hotspot for a considerable length of time. Years of reconstruction in the capital has seen different regions opening up and puts once thought to be oppressed areas, back on the radar for businesses to locate and see these areas prosper.
A great example of regeneration in the city has to be Shoreditch. What was once a rundown area is now the most fashionable of Hackneys neighbourhood’s
Right on the border of the city, the location was perfect for those needing to commute to the centre. It was this great location that led to an inpouring of creative folk, artists, and the like, looking to capitalise on cheaper rent and shorter commutes which led to this regeneration. The area then developed a great reputation for its caliber of creative workers and nightlife which only encouraged more people to settle here. This once dilapidated area was now attracting creative professionals who were not only making positive changes to the demographic of the area but now the landscape. Derelict warehouses would become trendy loft apartments and cool bars and art galleries were also common place offering a quirky bohemian ambience.
The borough of Hackney also continued to prosper as businesses were trying to avoid increasing residential costs in Shoreditch so opting to settle nearby.
The Shoreditch Office Space has also seen prices hike, as businesses look to reside in such sought after surroundings. This has had an unfortunate effect on many of the original businesses who have had to vacate the area due to increased costs.
Despite seeking to distance itself from corporate central London for so long, Shoreditch is beginning to find itself on a similar pricing path. So some smaller businesses and new startups are being forced to look elsewhere.”
It’s not all bad news, this has led to a spike in the need for shared and co-working space, where businesses of the same industry sector are clustering together, not only sharing exorbitant costs for business space, but also sharing business knowledge which will hopefully in turn lead to more small businesses flourishing in the capital.
This kind of shared workspace is becoming increasingly popular offering multidisciplinary mixed use hubs that can include meeting rooms, co-working areas for creatives, conferencing space and studio units.
These facilities can be an ideal “leg up” for new businesses, as the opportunity for networking far surpasses the usual “networking breakfast” and the saved rental costs can be further invested in to growing their business.
Another important factor to consider is flexibility. With such uncertainty surrounding the UK at the moment business expansions or even downsizing should be taken into consideration and ideally a flexible agreement put in place. Business hubs usually offer this, with some even adopting a pay as you go, plug and play solution.
Which areas will next be on the radar for regeneration? With the implementation and completion of the Elizabeth Line in December 2018, (A new railway that will span more than 60 miles from Reading and Heathrow in the West, through tunnels under Central London across to Shenfield and Abbey Wood in the East, there are bound to be more businesses and residential hot spots popping up!