Demand for Office Space in London to Rent Soaring, Says Deloitte
It shouldn’t come as a surprise to learn that demand for office space in London to rent is only going one way: up.
Given the amount of interest we receive via LondonOffices, it’s certainly no surprise to us. But if you’re not convinced, the latest findings from commercial property giant Deloitte Real Estate will put things into perspective.
In its latest Business Footprint Report, Deloitte found that the amount of serviced office space in London to rent has expanded by a massive 67% over the past decade. What’s particularly impressive is that, given Deloitte’s 10-year analysis, it proves the London market isn’t a flash-in-the-pan phenomenon. Instead we’re talking steady, sustained growth that has spanned a global recession and gone on to carve a significant niche in London’s established commercial property market.
The report finds that serviced offices now comprise five million sq. ft. across Central London, with the highest areas of demand found in the following locations:
The City: The financial district holds the greatest share of serviced office space in London to rent with 34% (1.7m sq ft), a rise of 21% over the past decade.
The West End: With 1.4m sq ft (28%) of commercial property occupied by serviced office operators, London’s West End clearly isn’t all cabaret and curtain calls.
Other locations including Southbank (14%) and Midtown (14%) are also proving popular.
Serviced office space in the Docklands and E1 have seen heightened interest over the past 10 years. Deloitte found sharp three-fold increases in these locations of 350% and 230% respectively.
As the hottest location for companies seeking office space in London to rent, The City is all business. It accommodates some of the most influential financial and insurance institutions in the world today, yet it’s not all about money.
Alongside chief banking and financial markets you’ll find a growing band of support services including TMT firms (telecommunications, media, and technology), creative agencies, recruitment companies and an exciting blend of disruptive startups.
Commenting on the wider Central London market, Chris Lewis, head of tenant representation at Deloitte Real Estate, says: “This significant increase in coverage highlights how important serviced offices have become.”
He added: “We are seeing, and will continue to see, the proliferation of these spaces across London, delivering flexible solutions to businesses large and small. Increasingly, these spaces are becoming their own ecosystem with scaled and scaling businesses working side by side.”
“It’s a profoundly exciting and a very real fixture in the London office market.”
Above all, businesses searching for serviced office space in London to rent now have the best range of choice at their disposal – and it’s only set to grow. But while this may seem like a buyers’ market, exceedingly high levels of demand is pushing rental values skywards in some of the city’s most sought-after locations, which can make navigating the market tricky and time-consuming.
Contact the team at LondonOffices on +44 (0) 203 826 8139 for an instant market-wide appraisal of office space in London to rent, and for help uncovering hidden gems that offer the best combination of location, services and value. Challenge us to help find your perfect London office, and we’ll help you set up shop in the UK’s hottest place for business.
– Image sourced from WikiMedia Commons – by DAVID ILIFF