The Tax Cheapo

Toeing the line of several other FTSE-100 Companies including Statoil and Rio Tinto, which have chosen to leave the heart of London and shifted their offices to other places in an attempt to cut operating costs of business, AstraZeneca has decided to shift its business from its Mayfair situated office to another office space in Paddington (click for offices to rent London).

More and more companies are shifting out of London everyday. Another name on the list is J Sainsbury, which is planning to shift out from Holborn in Central London to another place in North London, which is not only more spacious but will also be completed and furnished soon by Argent.

A recent survey conducted by Savills Commercial suggests that for any company wanting to move away from its base in the City, the primary reason is to control the operating costs. The situation might have been different two years ago, when rents were the third most important factor in such decisions, but today rents are the first priority for deciding upon changing of office space. Presently, AstraZeneca is paying around £40 a sq ft in Mayfair, where the average rents are almost £80.

AstraZeneca Spokesperson said that the company would shift the staff to the new office by 2010 end and the place is fully furnished. He said that the main reason for the company to shift is the need for cutting expenditure to stay more competitive and continue with its proposed plans of expansion.