Leasing numbers fall in London.
New figures show that the amount of companies renting office space in London has decreased.
New figures from CB Richard Ellis show that prime London office leasing has fallen to a 2 year low. The main reason being attributed to this is that global economic fears and the current financial climate. Overall, a total of 744,000 square feet has been leased in London over the past three months.
This is a quarter below the same period during 2010 and a 35 percent drop from the ten year average. Figures for Central London, which includes the West End retail and theatre district, fell from 19 percent to 2.2 million square feet.
Commenting on the recent leasing statistics Alan Carter, property analyst at Evolution Securities said: “Many firms will be considering whether they need to move given the current economic backdrop. You also have investment banks announcing lay offs, which produces a knock-on effect that weakens demand from the rest of the financial services industry.”
One of the biggest companies to see the effects of the current economic climate is the Swiss band UBS. The company recently announced that it was going to cut a unspecified amount of jobs due to the stalling economy.
“We are seeing the London leasing market reconnect with the economic fundamentals after a series of deals last year that were driven by pent-up demand,” commented Kevin McCauley, head of central London research at CB Richard Ellis.