Glasshill Studios, a rehearsal space in London that has been used by companies such as Sonia Friedman Productions and the Royal Shakespeare Company, is set to close.
News of the closure coincides with a shortage of affordable rehearsal facilities in the capital.
Shows that have rehearsed there include Bend It Like Beckham, Billy Elliot and Kinky Boots.
Matthew Towell, a freelance production manager and the venue’s founder, cited a sharp increase in business rates and rent as the cause of the closure.
He told The Stage: “Despite Glasshill’s bookings standing at around 87% occupancy, we have had two signifiant increases in the business rates and rent.
“The business rate increase is in the region of £30,000 and a potential rental increase of £73,000.”
“As we were always trying to be as competitively priced as possible, the increases are impossible to pass onto our clients,” he said.
He described the decision as a “heartbreaking outcome to what has been a fantastic space to develop and run”.
“Unfortunately, it would appear that it is now simply impossible to run a commercial rehearsal space the size of Glasshill this close to the centre of London, as the business rates and rents make it prohibitive,” Towell added.
The venue is set to close on March 1.