Is it cheaper to rent a railway arch or a commercial unit?

Railway arches have lower rent per square foot (£10–£42 vs £20–£80 in London), but require higher upfront fit-out costs (£25–£175/sqft vs £10–£60/sqft). Over a 5-year lease, arches are typically 20–40% cheaper in total cost of occupation due to the ongoing rent saving.

Are railway arches suitable for office use?

Arches can work for offices but require investment in insulation, lighting, and ventilation to create a comfortable working environment. The curved ceiling and limited natural light make them less ideal than purpose-built offices. Creative agencies and tech companies use arches successfully, but traditional professional services often prefer conventional units.

Do railway arches hold their value for businesses?

Yes — arch locations increasingly carry brand value. The Bermondsey Beer Mile, Hackney creative scene, and Brixton arches are destination brands. Customers actively seek out arch businesses for the atmosphere and experience, which can justify the fit-out investment.

Can I get a mortgage or loan for a railway arch fit-out?

Standard commercial mortgages don't apply (you're renting, not buying). However, business loans, Start Up Loans (up to £25,000 for new businesses), and equipment finance can fund fit-out. Some breweries use SEIS/EIS investment to fund arch fit-outs. Your landlord's rent-free period effectively finances part of the cost.

What happens to my fit-out investment if I leave the arch?

Check your lease carefully. Most arch leases require you to remove your fit-out and return the arch to shell condition (dilapidations). Some leases allow the landlord to keep fixtures. Negotiate this upfront — agreeing that the landlord keeps the fit-out can avoid costly strip-out at lease end.

Railway Arch vs Commercial Unit: Which Is Right for You?

Should you rent a railway arch or a conventional commercial unit? Side-by-side comparison of rent, fit-out costs, condition, and suitability by business type.

Choosing between a railway arch and a conventional commercial unit is one of the biggest decisions for small businesses in London. Both have distinct advantages, and the right choice depends on your business type, budget, and growth plans.

This guide provides an honest, side-by-side comparison covering cost, condition, flexibility, and suitability by business type — helping you decide which option is right for you.

Railway Arch vs Commercial Unit: Side-by-Side

Factor	Railway Arch	Commercial Unit
Rent (London)	£10–£42/sqft pa	£20–£80/sqft pa
Condition on Entry	Shell — bare brick, basic services	Cat A or fitted — ready to occupy
Upfront Fit-Out	£25–£175/sqft (significant)	£10–£60/sqft (cosmetic to moderate)
Ceiling Height	3–8m at peak (curved)	2.7–4m (flat)
Damp / Moisture	Common — waterproofing essential	Rare — standard DPC
Noise	Train noise overhead	Standard building acoustics
Character	Unique Victorian industrial aesthetic	Standard commercial finish
Planning	Often listed — consent needed	Standard permissions apply
Lease Length	Typically 3–6 years	5–15 years
Parking	Rarely included	Often included

Why Choose a Railway Arch

Lower Rent Per Square Foot

Arches typically cost 30–60% less per square foot than equivalent conventional units in the same area. A 1,000 sqft arch in Bermondsey at £30/sqft costs £30,000/year in rent — a similar sized retail unit on nearby Bermondsey Street could be £50–£70/sqft.

Unique Character & Brand

The Victorian brick aesthetic is a genuine brand asset. Breweries, restaurants, and creative businesses benefit from an atmosphere that's impossible to replicate in a standard commercial unit. Customers seek out arch businesses for the experience.

Flexible Use

Arches accommodate uses that conventional units struggle with: brewing, welding, loud music, heavy machinery. The solid construction absorbs noise and vibration, and landlords are often more flexible about permitted uses.

Clustering Benefits

Arch clusters (like the Bermondsey Beer Mile) create natural destinations. Being part of a cluster brings shared footfall, marketing, and community — benefits that are harder to find in scattered commercial units.

Why Choose a Conventional Commercial Unit

Move-In Ready Condition

Commercial units typically come in Cat A condition (finished shell with basic services) or fully fitted. You can be trading within weeks rather than months. For businesses that need to generate revenue quickly, this is a major advantage.

Standard Building Amenities

Conventional units come with central heating, DPC, proper insulation, standard electrical supply, and often shared facilities like WCs, lifts, and reception areas. These are included in the service charge — no upfront capital outlay.

Parking & Access

Many commercial units include parking, loading bays, and accessible entrances as standard. Arches rarely offer any of these. For businesses receiving deliveries or with disabled access requirements, conventional units are significantly easier.

Simpler Lease Terms

Commercial unit leases follow well-established patterns with standard repair obligations, clear break clauses, and established market comparables for rent reviews. Arch leases can be more idiosyncratic, particularly around repair obligations for the structure.

Which Should You Choose?

Choose an Arch If You...

Run a brewery, distillery, or food production business
Need character and atmosphere as part of your brand
Can invest upfront in fit-out for long-term savings on rent
Want to be part of a cluster/destination (Beer Mile, etc.)
Need height, noise tolerance, or flexible use permissions
Have a 3+ year time horizon to amortise fit-out costs

Choose a Commercial Unit If You...

Need to start trading quickly with minimal upfront cost
Require parking, loading bay, or step-free access
Run a professional services or office-based business
Want predictable, all-inclusive running costs
Need a short lease (under 2 years)
Are uncomfortable managing building condition and damp

The Bottom Line

Railway arches offer lower rent and unique character but require significant upfront investment and ongoing maintenance. If you can commit to a 3+ year lease and budget for fit-out, the total cost of occupation is typically 20–40% lower than an equivalent commercial unit. If you need speed and simplicity, a conventional unit wins.