Government departments to begin leasing their London office space.
London office space to be leased by government departments such as the Treasury in London.
Several government departments have announced that they will be leasing some of their office space in London.
The Treasury has said that they will rent out office space to smaller businesses. They are planning to cut their operating costs by 33%; part of this will be achieved by renting out the office space at 1 Horse Guards Road near St James’s Park.
However, many experts have warned that the offices available won’t be suitable to meet the needs of private businesses.
“A lot of the space that the Government has is probably not good space. Certainly, it is not a quick fix, and it is unlikely to impact the London market,” commented Chris Hiatt, national office chairman at office agency Jones Lang LaSalle.
The government are hoping to take advantage of the current shortage of office space in London. Properties such as the offices located on Horse Guards Road are expected to attract a high level of attention, however many of the government offices are not.
“London is under supplied with good space, but not with poor space,” added Chris Hiatt.
These decisions come directly after the Government’s spending cuts which are expected to result in an increased number of vacant office space. According to property consultants Jones Lang LaSalle, an increase in public sector job losses will result in even more unoccupied government office space.