City firms saving money by moving staff to office space in the regions
updated on 17 February 2016
City firms are saving money on office costs by moving large numbers of staff to regional offices, a report by the legal consultancy Jomati has revealed.
‘Low cost’ centres in regional cities are allowing firms to spend far less on property and staff than if they conducted all their operations from London. Some of the biggest UK and US firms in the country have the made the change as a result, with the Times reporting that Ashurst is paying a relatively cheap £23 per square foot for its office space in Glasgow, while US firm Latham & Watkins apparently just pays £27 per square foot for its offices in Manchester, in comparison to rates as high as £66 per square foot in London.
However, Tony Williams, principal consultant at Jomati, warned that the savings also come with challenges. Williams said: "After a slow start, there's now a real sense of momentum among traditional law firms to update many of their long-standing working practices. The challenges of doing so should not be underestimated. Unlike legal sector start-ups, established law firms don't have the luxury of starting with a blank sheet of paper when deciding how they should operate. They must deliver often significant operational change while also keeping their existing clients and fee earners happy."
