Back in 1777, Dr Samuel Johnson may not have realised how famous his great saying – “When a man is tired of London, he is tired of life”) – would become. Firms located in the London of 2010 know the multiple advantages that their choice gives them. Depending on their sector, these firms capitalise on the various benefits of being in a capital city. The relative advantage of being situated in the capital in Britain is often greater than the advantages associated with being in the capital of other nation states.

Critics of contemporary British society like geographer Doreen Massey sometimes complain that it is too ‘London-centric.’ They argue that the concentration of economic strength, political power and cultural dominance leads to excessive inequalities. However, firms which elect to do business in London are well placed to exploit the opportunities which are available. These firms can network in an area where networks are dense and social capital is high.

Not every firm reaps rewards simply by being in London, one location does not suit all, so a cost-benefit analysis can make good sense. Yet it should be noted that many firms and workers who have worked in London are very loyal to their city. This loyalty reflects the positive experiences they have had. The unique position of London in Britain is underlined by the evolution of its own governance framework.

Using serviced offices in London can be a great way for a firm to establish itself in the city. Once you have used serviced offices in the capital, you may be reluctant to leave them behind.