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How energy efficiency can reduce office costs

How energy efficiency can reduce office costs

How energy efficiency can reduce office costs

For companies operating in London, dealing with the cost of doing business in the city is an unfortunate fact of life. The UK capital is an exciting, thriving commercial hub that offers unrivalled opportunity for ambitious firms, but it's notorious for its high costs, as was recently underlined by commercial property consultancy Knight Frank.

One thing all London-based organisations should be doing is looking for every possible way of reducing their expenses, such as improving their energy efficiency.

A costly city

Research undertaken as part of Knight Frank's 2017 Global Cities Report looked at the cost of leasing and fitting out 600 sq ft of office space in technology and creative districts within some of the world's biggest cities.

At the very top of the cost ranking was Shoreditch in east London, where intense demand for office space has driven up start-up office costs. Knight Frank calculated that renting and setting up 600 sq ft of commercial space in this district currently costs the equivalent of US$66,706 (£51,250) per year.

That puts Shoreditch ahead of Brooklyn ($62,736), the Mid-Market area of San Francisco ($61,680), the first, second and ninth districts of Paris ($57,426) and Boston's Seaport district ($50,700).

James Roberts, chief economist at Knight Frank, said: "As we head towards Brexit, tech start-ups are the sort of firms the UK will be looking to for future growth. So it is disappointing to discover London is such an expensive place for them to rent business space, at least if they want their own offices."

Cutting costs

One of the positive findings in the Knight Frank research for London businesses related to the potential for cutting costs by using innovative working methods, with Shoreditch found to offer the largest savings for firms that opt to use co-working spaces.

The cost of occupying four desks in a shared space in the district was calculated at $28,933 per year, a saving of $37,773, or 57 per cent, compared to a traditional office. Mr Roberts said collaborative offices are playing a "vital role" in offering affordable business space in some of the world's most expensive cities.

Companies looking for new and innovative ways to reduce costs should also be focusing on their energy efficiency, an area that can offer excellent potential for cutting expenses while reducing your organisation's impact on the environment.

There are a number of simple steps any firm can take to improve its efficiency, cost effectiveness and sustainability, such as replacing traditional light bulbs with energy-saving alternatives, cutting down on paper use in the office and switching off all electronic equipment when it's not being used. It can also prove beneficial to conduct an energy audit, which could help you identify areas where you can reduce power consumption and lower your bills.

This efficient, sustainable mindset should also be extended to any service suppliers and third parties you work with, such as cleaning companies, caterers and delivery firms.

 

Posted by Julie Tucker

Image courtesy of iStock/ms_seal