It’s little wonder that so many businesses decide to have their bases in cities – with their transport connections and large workforces, they provide companies of all sizes with a wealth of benefits.
However, these advantages come at a cost. According to new research from Lambert Smith Hampton (LSH), businesses in Bristol are being hit with the biggest rise in costs when it comes to occupying a new office building.
Its most recent Total Office Cost Survey (TOCS) revealed that costs in Bristol for new office space rose nearly 10% in the 12 months to April 2018, compared to the nationwide average of just 2.6%.
In central Bristol, new buildings have a total cost per square foot of £76.46, an increase of 9.8%. In contrast, older properties have a total cost of £63.97 per square foot.
The main reason for the city’s rise in overall costs was rising rent levels, influenced by the arrival of much-needed new build development to the market this year. Rental values have spiked due to the fierce competition as occupiers seek to secure good quality space.
While it may have experienced the greatest growth, the survey highlighted that Bristol is still great value when compared with the costs businesses face in London. The annual cost for a new office in Mayfair is £18,303 per workstation, but this goes down to £7,646 in Bristol’s city centre.
Commenting on the findings, LSH director and head of Bristol office advisory, Peter Musgrove, said: “Bristol’s highly educated local workforce, strong academic links, and good transport networks make it a highly attractive option for businesses looking to establish themselves in the south west.
“We are certainly seeing healthy levels of demand across all sectors, particularly in technology, media, and telecoms (TMT), but this demand only highlights the supply shortages in the city, particularly of new build Grade A space, and against this backdrop, further rental growth looks likely.”
The total cost figure in the report took a range of factors into account, including rents, rates, fit-out and furniture costs, insurance, security, cleaning, waste disposal, energy bills, and management fees.
Finding, designing and furnishing your ideal office requires many considerations. Of course, location is a big one, but you also need to ensure that the working space reflects your company culture and provides your staff with an environment that boosts productivity and wellbeing. If you’d like help creating your perfect office, speak to the experts at Kerr today.