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“For many people, London’s West End is synonymous with great theatres, shopping and entertainment. But beyond the obvious draw for tourists, the West End is also a thriving centre of commerce and business – something that may not be apparent at first glance.

We began our research with a specific goal: to measure business activity in the West End, so we could better understand the factors that are creating — or impacting — business

confidence in the area. The West End’s international footprint makes it the ideal barometer for global spending habits, while its location makes it home to a uniquely diverse set of

business types.

The results were illuminating, and delivered far greater insights than we first imagined. In carrying out this research, we’ve been able to distil the most valuable and unique aspects of being based in the West End, as well as highlighting the concerns and challenges faced by

local businesses as we look to the future.

We’re delighted to share the results of our findings, and we hope it will give other businesses an insight in to what the West End’s future may look like.

Seddons has been based in Portman Square since 1981. The West End was a draw, not just for its excellent amenities and transport links, but because it’s a place of diversity,

community and creativity; an iconic part of London with an incredible heritage, and a vibrant hub for both businesses and individuals. We’re proud to be a West End firm, and we are

excited to continue serving the community as the area evolves and thrives.”

Simon RossManaging Partner of Seddons

Foreword

2 The West End Business Monitor

1Section

3

The West End’s Strengths

The West End is world-renowned for a number of reasons. For a start, its location is unrivalled in London. Nestled in between Hyde Park and Regent’s Park, the area boasts world-famous attractions like Soho and the theatre district, and is home to arguably the most famous shopping streets in the world – Oxford Street, Regent Street and Bond Street.

These pull-factors are an obvious draw for tourists, but what about businesses? For those who took part in our survey, the area has three standout strengths. Top of mind was location, cited by 29% of respondents, and in joint second place, the area’s international reputation and transport links were cited by 28% of businesses as a key strength.

Forte Financial Group has operated out of the West End for 12 years. CEO, Sandro Forte, says, “The West End is synonymous with London’s energy and spirit. It’s certainly the easiest part of London to get to, and it continues to have that ‘vibe’ that brings people to its restaurants, theatres and numerous places of interest.”

Location & Amenities

Crucial to the area’s appeal as a business hub is the sheer volume of amenities right outside your door. The West End has everything — world-famous shopping districts, a boundless array of bars and dining options, plus well-maintained green and public spaces. For Tim Haddon, Asset Manager at commercial property company British Land, the amenities are a huge selling point. “Businesses look for spaces that support their growth and help them to retain their staff, and the amenities on offer can be crucial to that,” he says. “In the West End, these are fantastic. There’s a strong mixture of retail and office space, supported by public realm and green spaces.”

What do you think are the biggest strengths of the West End?

28%International reputation was the biggest strength of the West End for

of businesses

The West End Business Monitor

* Business friendliness

Footfall

International reputation

Transport links

Location28.76%

28.08%

28.08%

3.42%Quality of commercial property available3.42%

The variety of businesses located here

Broad client base2.73%

2.73%Variety and quality of amenities2.05%Other*0.68%

4

Andrew Richardson, Managing Director of private members’ club Home House, based in Portman Square, agrees. “The West End is well served by robust transport links, which help support an ever-increasing footfall to the area,” he says.

Despite its wealth of transport routes and connections across road, rail and underground, the West End is set to benefit even further from major infrastructure projects like Crossrail. The two Elizabeth Line stations at Tottenham Court Road and Bond Street are projected to bring an additional 60 million people into the area each year from 2020. That’s a massive 33% leap from the area’s current figure of 200 million annual visits.

To be based in the West End is seen as a mark of quality - to many the postcode holds status, which is key for attracting professionals to the area. This is further heightened by the quality of the assets in the district; the public realm is well managed, with many utilising the area’s green spaces.

ANDREW RICHARDSONManaging Director, Home House

Penny Alexander, Chief Executive of the Baker Street Quarter Partnership says, “The West End name has an international pull too, attracting international headquarters to the area. The W1 postcode has a gravitas that helps firms attract top talent, includinginternational talent.”

Investment & Enduring Appeal

European investment in West End commercial property is thriving. As of October 2018, German investment into the area reached £515m, after fund manager Deka Immobilien GmbH bought the Verde office building — with a staggering 250,000 square feet of office space — in one

501-1000 employees

51-200 employees

201-500 employees

Less than 50 employees30.64%

32.25%

20.96%

4.89%

How many employees does your business employ?

Over 1,000 employees11.29%


5

19%of businesses have been based in the West End for over 25 years

Retail

Property and construction

Professional services

Financial services19.35%

16.12%

14.51%

12.90%

What sector does your business operate in?

Hospitality and leisure11.29%

Healthcare and pharmaceutical

Other*8.06%

6.45%

Public sector3.22%

Transport and logistics3.22%

Energy

Procurement1.61%

1.61%

Education1.61%

*Voluntary organisation, Professional association, Charity

11-25 years

1-5 years

More than 25 years

6-10 years

Less than a year1.61%

14.51%

35.48%

29.09%

19.35%

How long have you been based in the West End?

of the largest deals of 2018. For context, the investment figure for the whole of 2017 was £476m, up from £216m in 2016. Positive proof that the West End is a prime target for European investors, in addition to the historic prominence of Asian investment in the area.

The West End’s enduring popularity is undeniable, as evidenced by our survey. Almost a fifth of companies surveyed have been based in the West End for over 25 years (19%). Over a quarter (29%) have been located in the area for over 11 years, while a further 35% have been based here for six to ten years.


6

We are starting to see many larger businesses looking for more flexible spaces for certain projects - the West End market has had to respond to this change in working practices.

TIM HADDONAsset Manager, British Land

No

Yes75.80%

11.29%

Do you think you will still be based in the West End in five years’ time?

Not sure12.90%

76%of businesses plan to still be based in West End in five years’ time

On the question of the West End’s enduring appeal, British Land’s Tim Haddon points to two factors: “The variety of amenities on offer and the variety of people here. The West End has a mixture of people that want to work in the area, and live and play here. These factors help to make the West End an attractive offer for businesses.” For many, the sheer variety of businesses located in the West End is a sizable draw, cited by 10% of respondents as one of the area’s key strengths. As well as typical enclaves like the arts and creatives business cluster in Soho, the presence of tech and media companies is also growing. In its ‘West End Office Market Watch’, Savills reports that in January 2018, tech and media companies accounted for 56% of occupied space. That’s nearly three times more than the serviced office sector at 18%, and insurance and financial services at 10%. Beyond office-based businesses, the West End is home to an incredible array of stores: from barbers to bookshops, piano shops to printers, and everything in between.

Business confidence in the area is also high. Over three quarters (76%) of respondents still plan to be based in the West End in five years, citing location (25%), access to a broad client base (14%), and the variety and quality of amenities (11%) as factors.

Over a fifth of businesses (21%) are planning to increase their floorspace in the West End over the next five years, with 62% of respondents looking at securing long-term leases of over five years as a way to increase their capacity.

This desire to increase floorspace reflects the West End’s growing popularity as a place to do business. Demand is so high that British Land’s Tim Haddon notes, “If you’re a corporate looking for over 15,000 square foot, you’ll have great difficulty finding space.”

Of the area’s success and enduring appeal, Penny Alexander of the Baker Street Quarter Partnership adds, “Many of the firms located in the Baker Street and Marylebone area like being a ‘West End firm’ – it’s distinct from the City. It’s a bit fresher and more interesting as a business identity, but firms can still keep their staff happy as everything’s on their doorstep.”


7

The West End’s Challenges

Property Costs

Despite its many advantages and attractions, the West End does pose challenges for businesses who call it home. Property cost is the biggest concern, cited by over a quarter of those surveyed (27%). Underlining this, the survey also shows that, of the businesses planning to move from the West End in the next five years, a fifth of respondents (22%) cite the cost of property as the biggest reason.

As well as high property costs, a lack of availability when it comes to office space is also a concern, as Alexander observes. “The office market in our area is very healthy. There’s a lot of demand, but not enough space to satisfy it. There’s arguably an oversupply of outlets serving the ‘grab and go’ lunchtime market, although these outlets are well used.”

Recent figures from CBRE show that amongst Central London’s thriving commercial property market, the West End is one of the most favoured areas for takeup, having seen a 25% rise in space under offer during Q3 2018. This quarter also saw the highest level of overall takeup since 2015.

Office design specialist Oktra reports that in 2018, the rent for Grade A office space is £110 – £120 per square foot in Mayfair, £75 – £90 in North Oxford Street or £80 – £95 in Soho. By comparison, prices in other employment hubs like the City are £55 – £70 per square foot, £40 – £50 in Canary Wharf and £75 – £82.50 in Kings Cross.

Haddon concedes that rent for the area can be expensive. In fact, over the last few years, British Land has seen a divergence away from the core area of the West End, which he recognised as a consequence of high rents. However, Haddon says businesses can — and have — adapted to this, observing that “the demand for more flexible leases is a response to the expense of the area.” The divergence of businesses moving further out from the core of the West End around Berkeley Square has transformed the area and brought a new vibrancy to the West End, with more retail, leisure and residential spaces opening in what was traditionally an area reserved for offices.

Road traffic

Business rates

Competition from other areas in London that are becoming gentrified

Brexit

Cost of property26.71%

19.86%

19.17%

9.58%

7.53%

What do you think is the biggest challenge facing the West End currently?

2Section

Competition from the Northern Powerhouse0%

Air quality6.16%Transport links6.16%Retail closures2.73%Other*2.05%

* Litter and security


8

Tessa Naylor, Head of Seddons’ Commercial Real Estate Department notes that the growth of retail or leisure spaces in traditionally office-centric locations indicates a growing appetite for investment in mixed-use property developments. “Fortunately, support for more flexible use of heavily-rated and rented high streets is coming from the Government. The Autumn 2018 budget announced a consultation on changes to use classes and an extension of permitted development rights so 21st century uses can be reflected and facilitated,” she says. “This is welcome news for clients whose projects are constrained by existing planning restrictions on users.”

Forte Financial Group’s Sandro Forte sees the increase in residential development as a concern. “My office is in Berkeley Mews (very near Marble Arch) and over the last few years I’ve seen a huge increase in the amount of property development work going on in and around the area,” he says. “I’m not necessarily sure this will be a good thing for the West End because there’s a danger it will lose its identity.”

Tim Haddon has seen other changes as a result of high property costs —this time involving leases. “Fewer businesses want long term leases – a majority demand more flexibility in this,” he explains. “[At British Land] we’ve responded to this change with our Storey offer, which provides flexible workspace for ambitious and growing businesses, as well as larger organisations seeking additional space on flexible terms. We are starting to see many larger businesses looking for more flexible spaces for certain projects – the market has had to respond to this change in working and the West End.”

This is reflected in the survey findings, with 23% of businesses planning to increase their floorspaces with leases of less than five years. 15% are planning to do this using flexible working space. Naylor confirms that, in her experience, “short-term leases with early breaks have been around for some years now, and we’ve observed that tenants averse to long-term commitments are indeed meeting little resistance from landlords. Previously I may have had to advise tenants to push for more flexibility, but now it’s common to see heads of terms where flexibility is offered upfront.”

Transport links

Cost of property

Road traffic

Other*

Business rates21.73%

21.73%

17.39%

13.04%

8.69%

Why do you not planto stay in the West End?

Closure of business e.g. for retirement

8.69%

Gentrification in other parts of London offers better or new opportunities

4.34%

Air quality0%

Sale of business4.34%Access to appropriate workforce0%

23%of businesses plan to in-crease their floorspace through short term lease

* Our finances have taken a hit from public spending cuts and we have to find a cheaper building, Possible move to a lower cost location on greenfield site, More of our staff are tele-working, Looking at options to move some HQ functions out of Central London


20.96%

19.35%

9.67%

14.51%

What % of your workforce are EU nationals from outside of the UK?

8.06%

3.22%

1.61%

0%

0%

1.61%

20.96%

Not sure

I expect this figure will decrease

I do not expect this figure to change

I expect this figure will increase17.74%

22.58%

35.48%

24.19%

How do you expect the % of your workforce that are from outside the UK to change in the next five years?

Business Rates

Our survey found that business rates are the second largest challenge facing the West End, listed by a fifth of respondents (20%). Combined with the cost of property, this is also the reason why some are planning to leave the area in the next five years, cited equally by 22% of respondents. Although retail is a major part of the West End business community, generating over £9bn in sales a year, the average London shop is facing a significant 14% rise in business rates next year.

The struggles of bricks-and-mortar retailers have been widely reported in 2018, and the burden of business rates is one of their main challenges. Retailer John Lewis is set to pay £10.5m in business rates for its flagship Oxford Street shop from April 2019 — a 60% rise in three years. Meanwhile, Selfridges’ flagship store also faces a 60% hike, with a bill of £17.5m. The New West End Company, which represents over 600 retailers in the West End, reports that last year’s rate revaluation led to an average 80% rise in business rates, while some stores experienced rises of over 130%. The 2018 Budget offered some relief for smaller high street retailers, introducing business rates relief for premises with a rateable value of £51,000 or less, but this does not affect most of the well-known shops in the West End.

9

30-39%

10-19%

40-49%

20-29%

0-9%

70-79%

50-59%

80-89%

60-69%

90-100%

Not sure

Brexit

We couldn’t talk about The West End’s challenges without talking about Brexit. Perhaps unsurprisingly, it’s the third largest challenge for businesses, according to our survey. There’s a lot of uncertainty in the West End, as Penny Alexander points out: “We have not yet seen businesses leaving the Baker Street and Marylebone area of the West End because of Brexit, but it could ultimately mean a change in the type of businesses in the area.”

In September this year, Shaftesbury Group’s Chief Executive Brian Bickell complained to the media that tight visa restrictions and uncertainty around EU migration rules were deterring Chinese and European workers from finding retail jobs in the West End. The FTSE 250 property company specialises in shops, bars and restaurants, and invests exclusively in the capital’s bustling West End, with holdings in Carnaby Street and Chinatown, as well as Soho, Covent Garden and Fitzrovia. He claimed the West End’s retail economy was under threat from staff shortages and cited recent experience, which saw a prospective new restaurant in Chinatown pulled after the company was unable to appoint a Chinese chef to run the kitchen.


Ahmed Ajina, Associate in the immigration department at Seddons, recognises these problems, advising: “Some of our West End clients are reporting difficulties filling employment vacancies, and a contributing factor to this problem for many is certainly the current decline in the number of EU nationals coming to work here, and increasing numbers of EU nationals opting to leave the UK. However, companies face significant obstacles in filling vacancies, even when looking beyond UK and EU workers under the current work permit system. Currently, businesses can’t sponsor non-EU nationals to fill vacant positions that are not classed as highly skilled roles. As a result, many businesses are struggling to meet their employment needs.”

Meanwhile, although Brexit is acknowledged by the survey respondents as a significant challenge, most don’t expect it to have a huge impact on the makeup of their workforces. 29% of businesses surveyed had significant numbers of EU nationals in their workforce (a minimum of 30% of their employees). 23% of respondents expect lower numbers of workers from outside the UK in the next five years, however, 53% of businesses expected the level to either increase or stay the same.

Worryingly, 47% of businesses say that accessing finance has become more difficult since the Brexit vote in 2016. However, only 3% of respondents are dependent on European public funding, with bank lending (60%) and private equity (21%) still the preferred sources of finance.

Not sure

More difficult

It has stayed the same

Easier3.22%

46.77%

33.87%

16.12%

Has accessing finance as a business become easier or more difficult since the Brexit vote in June 2016?

10

10%of businesses plan to remain in the West End due to its international reputation

Angel investment

Private Equity

UK public funding

Bank lending59.67%

20.96%

8.06%

6.45%

What type of finance does your business access?

European public funding

Crowdfunding

3.22%

1.61%


11

3Section

The West End’s Future

56%In five years’ time,

of businesses think the West End will mainly consist of office space.

Over the next five years, respondents predict that office space will continue to form most of the West End (selected by 56% of respondents). They also expect to see a heavy concentration of retail stores (19%) and residential property (18%). The West End is currently one of the largest job markets in London, with 155,000 people employed in the district. This figure includes 49% in professional service and 24% in retail, which indicates that the balance between West End office and retail space is not expected to change much in the next five years.

Home House’s Andrew Richardson believes change in the West End has been slow but very positive. “It has diversified from its office traditions to have a strong retail and residential offer,” he comments. “We’re now starting to see what are effectively ‘mini-villages’ located in the area, with the return of more independent shops mixed into residential spaces. This ensures that more people are staying in the area and utilising the space.” These ‘mini-villages’ include Portman Village, a cluster of boutique and independent shops and cafes between Upper Berkeley Street, Seymour Place and Gloucester Place.

‘Gentrification’ has been a recent buzzword for much of London. It refers to the transformation in the character of an area, including a change in the retail make up and rising property prices. The West End too is experiencing this process in parts. For example, the narrow streets of Soho are now dominated by trendy bars, restaurants and boutiques, rather than the unconventional outlets it was once known for. Stephen Fry has chaired the Save Soho campaign since 2014, which fights to preserve the area’s traditional character. Beyond Soho, Wigmore Street, historically dominated by commercial and retail premises (including a 19th-Century ironworks) is now dominated almost exclusively by high-end kitchen stores.

Entertainment and leisure facilities

Retail stores

Residential properties

Office space56.45%

19.35%

17.86%

10.71%

In five years’ time, what do you think the West End will mainly consist of?

Other*7.14%* Showrooms and a range of outlets


12

Looking ahead to the future, Penny Alexander says, “We want to build a really strong retail offering, of good quality in the Baker Street and Marylebone area of the West End. We have an engaged worker and resident audience, and if we serve these well, it will draw in a wider London audience.

Transformation

Westminster Council has an ambitious plan to transform Oxford Street, with a proposed spend of £150 million on more pedestrian space, while maintaining two lanes of traffic along the length of the street. The original plan to fully pedestrianise the street drew concern from local residents, who didn’t want traffic diverted into the nearby streets.

The plan to transform Oxford Street speaks to the West End’s identity as the heart of London’s retail offering, and the desire of stakeholders for it to remain so. 600,000 people visit Oxford Street every day, 30% of whom come from overseas. Together, they spend a total of £9bn across the major shopping streets of Oxford Street, Regent Street and Bond Street.

The West End is unique and always will be, thanks to brilliant areas like Soho and the theatre district.

In the next five-ten years we would like to see Marylebone and Baker Street become the places of choice for commercial businesses. They are areas where staff will be happy, well connected and easy to locate a business.

Decrease

Increase48.38%

8.06%

Do you think the % of your employees working remotely will increase or decrease in the next five years?

Stay the same33.87%

38%of businesses are considering crowd funding as a future source of funding

Not sure9.67%

PENNY ALEXANDERChief Executive, Baker Street Quarter Partnership


13

46.77%

22.58%

8.06%

0%

What % of your employees work remotely?

8.06%

6.45%

1.61%

0%

0%

3.22%

3.22%

Flexibility is becoming more valued among employees so it’s important for attracting the right people

It is an effective way to keep office costs down by reducing the amount of physical space we need in our West End premises

Technological advancements will make it easier to work remotely50%

46.66%

3.33%

What will be the main driver for your company’s increase in remote working?

30-39%

10-19%

40-49%

20-29%

0-9%

70-79%

50-59%

80-89%

60-69%

90-100%

Not sure

Westminster Council’s Place Strategy and Delivery Plan identified 94 projects across 85 streets in nine zones, including proposals for major improvements at Oxford Circus, Marble Arch and Cavendish Square. This amounts to a massive £150m investment, with consultation on the proposals lasting until 16th December 2018.

The Council says that “through ongoing engagement with residents, businesses and visitors, it’s clear that an effective and funded maintenance and management plan will be required to ensure that the District remains a key destination once the improvement works get underway. This plan will tackle issues such as rough sleepers, closely working with the police and pooling council resources regarding anti-social behaviour. It will also cover street cleaning, repairs and city-wide policies on busking and redouble efforts to see support for the changes in law to regulate pedicabs.”

The future of travel in the West End is a key concern, with current issues ranging from slow-moving traffic and gridlock, to air pollution. However, projects like the Elizabeth Line could alleviate some of the pressures, with alternative travel routes drawing even larger numbers of visitors to the West End. Although the exact timeline is the subject of debate, it’s clear that transportation is a sector where many are expecting radical, disruptive change in the future.

Haddon believes there are a number of things that the West End needs to address as it transforms over the next ten years. “The evolution of the car – how this will change the public realm, and fundamentally, buildings themselves. How we promote more sustainable modes of transport, such as cycling – these are all issues that will shape the West End in coming years,” he says.

Working Practices

Home House’s Andrew Richardson sees the current ‘growth of the entrepreneur’ as a transformative force in the area. Entrepreneurship has created a ripple effect of change across multiple sectors, especially the property industry, which has had to respond to changing business practices. “More and more people don’t require a fixed office space, instead they are looking at more flexible working options – for example, we have seen people working from Home House.”


14

Although less than a fifth of employees in most West End firms (69%) work remotely, 48% of respondents expect this figure to increase in the next five years. Advances in technology will be the main driver for this transformation in working practices, cited by 50% of respondents. Flexibility is also a key driver, with 47% of businesses expecting an increase in remote working for the flexibility it offers employees — a valuable retention tool for the future.

Helen Crossland, Head of Employment at Seddons, agrees. “Organisations risk being left behind if they cling to traditional practices while those around them invest in technology and smarter, leaner working methods. The economic benefits of having systems in place which work, and which enable employees to perform their duties from home, a hot desk or coffee shop are undeniable.” However, Crossland also observes that many employers are not ready for, and are still battling with, the concept of flexible working and that cultural and trust barriers prevail. “Some organisations, owing to the nature of their business, do not have the luxury of being as versatile as others.”

For businesses who can and want to offer flexible working practices, it’s vital to plan for the practicalities and secure advance buy-in at all levels. The right technology and infrastructure is crucial, as is having communication systems in place that reach all employees regardless of where they are. “Critically, employers also must learn to trust employees to do what is required of them when ‘out of sight’ and manage those who take advantage of such trust,” Crossland adds. “We are in a period of transition which some businesses will navigate better than others. Employees meanwhile, are now expecting, as standard, flexibility in their work arrangements, and businesses risk losing good staff and future talent if they are not alive to this.”

48%of West End businesses think the % of their employees working remotely will increase in the next five years

“The West End is the Heart and soul of London - and always will be.

SANDRO FORTECEO, Forte Financial Group


15

38.46%

30.76%

15.38%

15.38%

Which other sources of funding are you considering?

0%

0%

No

Not sure

Yes20.96%

46.77%

32.25%

Do you plan to access different sources of finance in the future?

Flexibility & Finance

British Land’s Tim Haddon has also observed a growing shift in the variety of businesses located in the West End. “The change in leasing practices means that there is more flexibility in the type of companies that locate here – it’s no longer just big corporations, there is a strong concentration of independents and smaller firms,” he says. “They’ve also been driven by the improved connectivity links and wealth of retail and leisure in the area.”

This diversification of business types will bring further changes to the West End beyond the commercial property sector. As well as becoming more open to flexible leases and working practices, West End businesses are also looking at alternative funding sources. Over a fifth of businesses surveyed (21%) said they were planning to use different sources of finance in the future. The most popular (by some margin) was crowdfunding. Although only 2% of businesses we surveyed currently use crowdfunding platforms, 38% are considering it as a source of finance in the future, indicating the business community in the West End is innovative, confident and forward-looking.

Kyle Irvine, Head of Corporate at Seddons, challenges the common perception that crowdfunding solutions are the sole preserve of innovators and start-ups. He comments “We are also seeing them being deployed at later stages of the business cycle, to fund growth or specific projects. Once seen as an alternative to bank borrowing, more banks are now looking favourably at crowdfunded businesses, particularly those that are consumer facing rather than B2B. The fact of a successful fundraising campaign is taken to demonstrate the viability of the business in question.”

Private Equity

Bank lending

Angel investment

UK Public funding

Crowdfunding


Encore

The West End’s position as one of London’s most vibrant and thriving areas looks assured for now. Despite the challenges that West End businesses report — specifically the cost of property, burdensome business rates and the uncertainty of Brexit — they are happy, even proud, to be located here. The area is home to a stable population of businesses that have been based in the West End for a long time, and crucially, still plan to be here in five years. Encouragingly, a fifth (21%) of businesses are planning to increase their floorspace in the area, reflecting the healthy demand for office space. The West End is part of London’s global identity and its economic diversity elevates it above other neighbourhoods in London. No other neighbourhood has the necessary economic diversity to be such a hub for retail, leisure and office. It’s an identity many businesses are proud to associate themselves with.

The final word must go to Sandro Forte, who says of the West End’s future: “It is the heart and soul of London – and always will be. For that reason – and even if it has its fair share of challenges in the meantime – people will always circle back to the place where everything happens. From a business perspective I believe that it is – and will remain – the place to be.”


Competition from other areas in London that are becoming gentrified

What do you think is the biggest challenge facing the West End currently?

* Litter and security

Road traffic

Business rates

Competition from the Northern Powerhouse

Brexit

Cost of property26.71%

19.86%19.17%

9.58%

7.53%

6.16%

Transport links

Retail closures

Air quality

Other*

6.16%2.73%2.05%

0%

Closure of business e.g. for retirement

Gentrification in other parts of London offers better or new opportunities

13.04%

16

Appendix 1

This report draws on a survey sent to businesses located in the West End of London. We received 62 responses, from which we were able to ascertain both quantitative and qualitative data. The respondents were from a range of sectors, including: financial services, property and construction, professional services, retail, and hospitality and leisure. They varied in size from less than 50 employees up to over 1,000 employees, with turnovers ranging from less than £1 million up to over £100 million. A number of respondents were subsequently interviewed in-depth about themes that emerged from the data analysis.

How many employees does your business employ?

501-1000 employees

51-200 employees

Over 1,000 employees

201-500 employees

Less than 50 employees30.64%

32.25%

20.96%

4.89%

11.29%

How long have you been based in the West End?

11-25 years

1-5 years

More than 25 years

6-10 years

Less than 1 year1.61%

14.51%

35.48%

29.09%

19.35%

*Voluntary organisation, Professional association, Charity

Retail

Property and construction

Hospitality and leisure

Professional services

Financial services

What sector does your business operate in?

Other*

19.35%

16.12%

14.51%

12.90%

11.29%

8.06%

Public sector

Transport and logistics

Healthcare and pharmaceutical

Procurement

6.45%

3.22%

3.22%

1.61%

Energy

Education

1.61%

1.61% No

Not sure

Yes

Do you think you will still be based in the West End in five years’ time?

75.80%

11.29%

12.90%

Variety and quality of amenities

Broad client base


Other*

Location

What are your reasons for remaining in the West End?

Transport links

25.34%

14.38%11.64%10.95%10.27%9.58%

Quality of commercial property available

8.21%

The variety of businesses located here

4.79%

Footfall

4.79%

* Work with businesses in the area, Close to City institutions, Staff recruitment - good area, Local plans to boost visitor numbers, International clients - convenient for them to visit, Our members like it as a venue and location for events, visits, Most of our clients are in the area, I live and work in the area, Long lease, Proximity to partner businesses, Business expanding, Many repeat customers, Prestige address, High consumer spend, Long lease

Why do you not plan to stay in the West End?

* Our finances have taken a hit from public spending cuts and we have to find a cheaper building, Possible move to a lower cost location on greenfield site, More of our staff are tele-working, Looking at options to move some HQ functions out of Central London

Sale of business

Cost of property

Transport links

Other*

Business rates

Road traffic

21.73%

21.73%

17.39%

4.34%

8.69%

8.69%

Access to appropriate workforce

Air quality

4.34%

0%

0%

Footfall


Quality of commercial property available

Transport links

Location

Broad client base

28.76%

28.08%

28.08%

3.42%

3.42%

2.73%

The variety of businesses located here2.73%

Variety and quality of amenities2.05%

Other*0.68%

* Business friendliness

What do you think are the biggest strengths of the West End?


Other*20%

It is more efficient and effective for my business for my workforce to be on site together

60%

Increased use of remote working80%

17

10-19%

20-29%

0-9%

What % of your workforce are EU nationals from outside of the UK?

20.96%

19.35%

9.67%

40-49%

50-59%

30-39%14.51%

8.06%

3.22%

70-79%

80-89%

60-69%1.61%

0%

0%

Not sure

90-100%1.61%

20.96%

Angel investment

Private Equity


UK public funding

Bank lending

What type of finance does your business access?

Crowdfunding

59.67%

20.96%

8.06%

6.45%

3.22%

1.61%

Decrease

Stay the same

Increase

Do you think the % of your employees working remotely will increase or decrease in the next five years?

48.38%

8.06%

33.87%

Not sure9.67%

What % of your employees work remotely?

46.77%

22.58%

8.06%

0%

8.06%

6.45%

1.61%

0%

0%

3.22%

3.22%

More difficult

It has stayed the same

Easier

Has accessing finance as a business become easier or more difficult since the Brexit vote in June 2016?

3.22%

46.77%

33.87%

Not sure16.12%

Retail stores

Residential properties

Office space

In five years’ time, what do you think the West End will mainly consist of?

56.45%

19.35%

17.86%

Entertainment and leisure facilities10.71%

Other*7.14%* Showrooms and a range of outlets

No

Not sure

Yes

Do you plan access different sources of finance in the future?

20.96%

46.77%

32.25%

Private Equity

Bank lending

Angel investment

UK Public funding

Crowdfunding

Which other sources of funding are you considering?


38.46%

30.76%

15.38%

15.38%

0%

0%

We plan to decrease it

We do not plan to change it

We plan to increase it

Are you planning to increase or decrease your floorspace in the West End in the next five years?

20.96%

8.06%

37.09%

Not sure33.87%

Flexible working space

3-5 year short term lease

“Pop-up” style licence/lease for less than 1 year

Long-term lease (more than 5 years)

1-2 year short term lease

How do you intend to increase your floorspace?

15.38%

7.69%

61.53%15.38%

0%

Flexibility is becoming more valued among employees so it’s important for attracting the right people

It is an effective way to keep office costs down by reducing the amount of physical space we need in our West End premises

Technological advancements will make it easier to work remotely

What will be the main driver for your company’s increase in remote working?

50%

46.66%

3.33%

10-19%

20-29%

0-9%

40-49%

50-59%

30-39%

70-79%

80-89%

60-69%

Not sure

90-100%

I expect this figure will decrease

I do not expect this figure to change

I expect this figure will increase

How do you expect the % of your workforce that are from outside the UK to change in the next five years?

17.74%

22.58%

35.48%

Not sure24.19%

Remote working isn’t compatible with our business

We do not have the right technology to enable it

I don’t think it’s an effective way to organise my workforce

Why will the % of your workforce working remotely not increase?

20%

0%

0%

Business rates are too high

Prohibitive rent increases

Increased use of technology reduces space requirements at the premises

Why will you not increase your floorspace?

20%

0%0%


* We have not discussed a change in working patterns. It is not a priority at this moment.

5 Portman Square, London, W1H 6NT+44 (0) 20 7725 8000 | www.seddons.co.uk | [email protected]

AboutSeddons

Seddons is a leading law firm based in London’s West End offering a breadth of commercial and private client expertise. The firm delivers practical, cost effective, legal advice across a range of specialisms with particular expertise in real estate,

corporate, dispute resolution, private client and family law.

The firm’s clients encompass corporations, small and medium sized enterprises, entrepreneurs, and private individuals, with

clients based across the UK and internationally and in a wide range of sectors.

Seddons is a top 200 firm, highlighted as a 2018 leading firm by

Legal 500, the leading guide to UK law firms and ranked in the Chambers UK Guide to law firms 2019.

We would like to thank everyone for their participation in this survey. We sincerely hope that you find it useful, and please do

not hesitate to get in contact should you have any questions.

the west end business monitor - seddons.scdn6.secure ...€¦ · the west end’s enduring...

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