The socio-economic impact of businesses in the railway arches
properties within each of the six case study local authorities (including The Arch Company space) referred to throughout this report. In four of these six local authorities, The Arch Company makes up more than one third of all industrial property listings in the area. Affordability figures are estimated using data from the Valuation Office Agency (VOA). Where possible, properties from the portfolio are matched against the VOA’s valuation list, and the portfolio estimated rental value (ERV) is compared against the VOA’s rateable value estimate. The ratio between the two is then applied to the unmatched properties in the portfolio to estimate what their VOA rateable value would be, allowing comparisons between the two groups to be made. The results of this exercise show that, even without considering further characteristics that often make The Arch Company space more attractive (such as smaller footprints and highly urban locations), The Arch Company ’s industrial space is often more affordable. In Southwark, Lambeth, and Tower Hamlets, the local authorities with the greatest number of The Arch Company properties, industrial properties in the portfolio have a lower median ERV per m 2 than their local counterparts. Likewise, properties in the portfolio perform similarly well against other properties in Hackney. In Wandsworth and Manchester, industrial space in The Arch Company portfolio is marginally less affordable than average. In Wandsworth, this is largely because The Arch Company spaces are mainly clustered around Battersea, one of the most expensive areas for property in the borough and in one of the most central clusters of manufacturing, storage and distribution activity.
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Figure 3.1- On average, The Arch Company industrial properties are more affordable in 4 of the 6 local authority case study areas
Median estimated rental value per m 2 of The Arch Company industrial properties and all local industrial properties
Volterra estimates using: VOA, 2023. Non-Domestic Floorspace: Stock of Properties Including Business Floorspace, and data provided by The Arch Company.
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Demand for railway arch spaces has increased significantly over the last twenty years with a corresponding rise in market rents. The Arch Company is a commercial landlord that takes affordability into account when determining rents with established customers. At the point of contractual rent reviews or lease expiry,
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