Businesses from all over the country and indeed throughout the world have been in competition for property located in the heart of London. The prestige of a central London address is something coveted by many smaller firms and jealously guarded by those who already have it.
Because of this fierce competition, businesses that offer property for temporary hire have found an ideal niche in the centre of the UK capital. If you're in business in London but you can't afford to buy a property or an ongoing lease outright then you can easily set up temporary contracts on everything from full serviced offices to executive meetings rooms Mayfair and other areas in the city of Westminster have become almost as vital to London's financial sector as 'The City' itself because of this demand and offer a slightly more attractive location for many businesses.
Many leading global corporations have their headquarters either directly in the City or in the nearby areas. More than half of the FTSE 100 companies and over 100 of Europe's 500 biggest companies have their headquarters in London. Those in the most vaunted central location of Canary Wharf and the City include the London Stock Exchange, Lloyds of London and HSBC. In Westminster you can find BP's office in St James, Easy Group in Mayfair and British American Tobacco in Westminster itself. With around 5,780,000 square metres of office space, Westminster's Mayfair and St James areas are just behind The City in terms of available property.
The advantages of being able to hold meetings or conduct business in this are directly linked to London's status as the country's financial heart - and the fact that it's one of the three "command centres" of the global economy. Each year London generates around 20% of the country's entire gross domestic product - 30% if you extend this to include the greater metropolitan area. A staggering 31% of global currency transactions took place in London in 2005, trading more US dollars than New York and more Euros than every other European city combined.
London's service based economy has been so successful for several reasons. The simplest is its location in a central time zone, allowing offices based in London to form a bridge between US and Asian nations. London's place at the heart of English speaking culture is also an important factor; English law is the most commonly used form of contract law in international business, English is the native language of business - and many of the world's largest financial organisations have their roots in the city.
Beyond this, there's also the unique relationship that central London has to business and financial trades. Not only does the excellent transport infrastructure provide clear links to rail, sea and aviation services, there's also the unique political status of The City. Rather than being administered by elected local government, the municipal authority is instead the City of London Corporation - rather than being elected by residents, the voters are made up of representatives of the businesses operating within the City.
