March 9, 2017
London has been named the third most expensive city in the world for office space, behind New York and Hong Kong, according to an analysis by Kit Out My Office on office rental prices. The analysis mirrors many similar studies that identify these cities as the most expensive on the planet in which to do business. The report looked at the cost of leasing office space of 10,000 square foot and associated business costs, such as property tax, service charges, and Internet access. However, all is not doom-and-gloom for businesses looking to relocate or start-up in London. Initiatives and grants are available for businesses, such as Enterprise Investment Schemes and R&D tax credits. The report claims that alongside being named the third most expensive city for office space, the decision by the UK to leave the EU has caused an air of uncertainty and posed many questions that are still unanswered. For example, how will EU workers be treated and will there be levies for companies that trade with Europe.
The top five most expensive cities in the world for office space according to the analysis:
- New York
- Hong Kong
Although the above could cause businesses to look elsewhere, the Mayor of London, Sadiq Khan, recently announced that he will visit five major European cities next month to declare that London remains the number-one destination for investment and business. “I want to take the message directly to Europe that London will always remain open to engaging, trading and doing business with our friends across Europe. Our connections on the continent are more important than ever before and, regardless of Brexit, we will continue to work closely together for our mutual benefit. I promised to be the most pro-business Mayor this city has ever seen and it is vital that we demonstrate to our partners overseas that despite Brexit we remain open to business, investment, talent and ideas. London will remain the best place in the world to do business and our collaboration with other major European cities will not cease.”