Location trumps rent in property choice

Location trumps rent when choosing commercial premises, according to a survey of Midlands businesses conducted by Insider and sponsored by property experts Vail Williams.

Organisations are willing to pay for the right facilities, revealed the research, which gathered insight from office, manufacturing and distribution occupiers.

That preference is significant because it was also revealed nearly one-in-three (30 per cent) want to move to new premises in the next two years.

The office sector is the most restless, with more than 30 per cent wanting to relocate. Building quality and parking overcame rent considerations, with a shift in popularity from city centre to out-of-town space, plus bigger offices increasingly in favour.

This sector may face a challenge from the diminishing supply of office accommodation, although 40 per cent of those seeking to move want purpose-built facilities.

Manufacturing businesses put a property’s transport links and availability of staff above rent. For distribution, rent was also surpassed by building suitability, including eaves height and future flexibility.

Vail Williams Partner Carole Taylor said: “Our research shows companies are now thinking beyond short term rent costs and recognizing that investing in the right infrastructure and location of a building is key to their growth whereas historically rent had been the main determining factor.

“However, there remain obstacles to finding the right property. Our team of expert advisors is here to help, whatever the challenge.”