What are the Demerits of an office in urban area?

1. It is experienced that the rent of a building or the cost of construction of an office becomes heavy. In the initial stage the firm may not be able to construct its own building, and will have to go for rented accommodation. Often heavy rent will have to be paid.

2. Since cities are overcrowded, it may not be possible always to have adequate space for the office. Small accommodation with many workers looks overcrowded.

3. Expansion facilities are also limited, because of the non-availability of building, high rent etc.

4. Generally in cities, dust and noise prevail in the atmosphere; hence the concentration of mind and physical condition which are necessary for smooth working in the office are affected.

5. With higher cost of living, the staff may demand higher wages, resulting in high expenditure.