There is a lack of supply of serviced office space in London.
The reports comes after research revealed that there is an excess of grade C supply.
A report concerning the availability of serviced office space in London has shown that there is limited supply within the capital.
SME’s looking to move into office space in London are set to be left peeved by the lack of serviced business centres available to them.
The study by Jones Lang LaSalle (JLL) also illustrates the fact that there is a greater demand for serviced office space than their is supply in London and that many areas could run of space before the end of the year.
JLL predict that the rental prices for space in London will be below average however they do expect commercial property rents to increase by 1.7% nationwide in 2012, but areas with a shortage of serviced office space like the City of London and the West End are likely to see increases of approximately 3 and 3.5% respectively.
The West End is somewhere that seems to have a particular low supply, with JJL forecasting that the space currently available in the area could be taken up in eight months due to a surprising amount of demand but also a lack of development because of the economic climate.
This new report corresponds with previous research by Cushman & Wakefield which stated that they expected that there would be a critical shortage of high-quality space between 2011 and 2013. DTZ also said that the amount of grade C office space on supply exceeds that of grade A space.
Head of UK Research at DTZ, Martin Davis said: “Contrary to our expectations grade C has a lower availability rate than grade A and B stock.
“Nevertheless, we expect this position to deteriorate in the face of continued low economic growth and competition for occupiers from better quality space.”