Hackney's Commercial Sector Navigates New Workspace Growth and Rate Pressures

Hackney’s commercial property landscape is undergoing a notable shift as major developments bring new workspace to the borough, even as local businesses navigate significant challenges regarding business rates. Recent initiatives aim to bolster the area's creative infrastructure, while planning protections seek to safeguard the long-term future of key commercial districts.

New Workspace and Development Projects

Investment into the borough’s workspace continues to advance. Developer Regal London has acquired a mixed-use scheme at The Laundry Building in Hackney (E8). This development is set to provide 26,500 sq ft of commercial space. Furthermore, the Hackney Yards development has seen activity through Notting Hill Genesis, which is selling 10,000 sq ft of affordable studio space to the Bow Arts Trust. This arrangement is expected to support 38 creative studio units in addition to more than 4,000 sq m of commercial space.

These projects are part of a broader push to maintain a supply of professional and creative environments within the borough. Complementing these developments, the local authority has successfully secured a government exemption designed to protect commercial areas. This measure restricts the conversion of commercial properties into residential units without planning permission, specifically covering parts of Shoreditch, Hoxton, Dalston, and Hackney Central.

The Impact of Business Rate Increases

While new infrastructure projects progress, the local business community faces substantial financial pressure. According to information provided by Hackney Council, over 370 local businesses are bracing for significant business rate hikes. These increases are expected to range from £10,000 to £100,000 next year. The rise is attributed to a 46% average increase in rateable values, which represents the highest such increase across the United Kingdom.

The combination of these rising costs and the influx of new, purpose-built workspaces creates a challenging environment for existing tenants. The council's efforts to secure planning exemptions for commercial zones reflect a commitment to retaining business capacity in the face of broader economic pressures. Businesses operating within the affected areas are advised to review the impact of these changes on their operational costs as they manage the ongoing transition in the borough’s commercial property market.

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