The socio-economic impact of businesses in the railway arches
premises as a major obstacle to the success of their business. 17 This has risen from 12% in 2020 and does not reflect the countless number of small businesses and organisations that cannot locate suitable workspaces. High levels of demand acts to push up the rents for commercial properties, and so can act as a deterrent to start-ups who may not be able to compete financially with larger or older businesses. 18 Such conditions can act as a deterrent against the formation of new businesses and undermine long-term economic growth. This deterrence can be seen clearly in the five London-based case study areas, where the rate at which new businesses are created per 100,000 population of 834 was lower than the London-wide figure of 867. This figure falls to 657 further if Hackney, which performs well in terms of business starts, is excluded. 19 The importance of sufficient space to facilitate business start-ups and survival cannot be understated. This is particularly the case for industrial space in London, which is discussed in the next chapter.
3.8
3.9
Railway arches act as engines for growth
3.10
As the largest landlord to small businesses in the UK, The Arch Company’s portfolio plays a vital role in ensuring that small businesses have access to the facilities they need to start-up and scale-up. The Arch Company portfolio provides a range of options for the types and characteristics of spaces required by businesses and organisations. These range from highly affordable spaces tailored towards storage and industrial businesses (such as the propertie s on Randolph Street in Camden, outside London’s core ), to relatively more high- end spaces that attract higher footfalls and cost relatively more (such as the Findlater’s Corner property outside London Bridge station, which was unoccupied for several years prior to investment by The Arch Company through its capital regeneration programme). A significant proportion of the portfolio is based in areas where start-ups may face barriers to the commercial property market. The portfolio’s strengths of accessibility, price, and size acts to support start- ups in those areas. Due to its proximity to major transport hubs and high level of accessibility, a significant proportion of properties in The Arch Company portfolio are in areas that face high demand for commercial space. The five London-based case study areas, for example, contain 39.6% of all commercial space within the portfolio and all lie within Inner London, which faces high demand for such space. The range of options within The Arch Company portfolio ensures that organisations can occupy space that is affordable for their given budget and provides value for money. When choosing a commercial property to rent, businesses must weigh up a number of different factors, such as affordability, size and location. This section provides benchmarks for how the range of properties within The Arch Company portfolio perform on these factors.
3.11
3.12
Affordability
3.13
Arch spaces provide value for money for small businesses and organisations that would otherwise be unable to access commercial spaces. Commercial space is affordable where it is cost effective considering its type and location. Retail space with relatively high footfalls is often more expensive than larger industrial space that does not have the same requirement for footfall. Comparing the affordability of property requires consideration of these factors to provide a like-for-like comparison.
3.14
Focusing on industrial property only (the dominant type of The Arch Company’s space), Figure 3.1 compares the estimated average rental rate in spaces operated by The Arch Company to all industrial
17 Department for Business & Trade, 2023. Longitudinal Small Business Survey 2022.
18 Chamber of Business, 2023. What is the Long-Term Impact of Rising Rent Costs for Business in the UK?. Available at: https://www.chamberofbusiness.co.uk/articles/what-is-the-long-term-impact-of-rising-rent-costs-for-business-in-the-uk/
19 ONS, 2022. Business Demography.
12
Made with FlippingBook. PDF to flipbook with ease