High demand could raise rental prices in London.
Lack of completed developments has cause a shortage of London office space.
London office space is currently suffering from extremely high levels of demand countered with a lack of available commercial properties. Recent statistics gathered by Colliers International show that availability of office space in Central London has reached one of its lowest ever points throughout the beginning of 2011.
Many believe that this will have a knock on effect on the prices and leasing rates for London office space. One recent cause of the increased interest in commercial properties is companies looking for headquarters in the UK. Areas such as East London’s ‘Tech City‘ have recently seen an influx of high profile tenants from the media and technology industries such as Yammer, Last.fm and TweetDeck.
However, the lack of completed office buildings and projects means that many companies are struggling to find appropriate office space for their company. Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors commented: “What we are finding from our members is that demand is outstripping supply. Supply isn’t coming on tap.”
Whilst there are many high profile developments current undergoing construction in the city, such as The Shard, firms that require office space now are finding it difficult to locate London office space. Therefore landlords may soon begin to push up rental prices as interest and inquiries are currently at astonishingly high levels.