Report Show Severe Shortage of High Quality London Serviced Offices
There is a lack in supply of high quality London serviced offices. Reports comes after research revealed that there is an excess of grade C office supply in the capital.
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 London serviced offices are set to be left peeved by the lack of business centres available to them.
The study by Jones Lang LaSalle (JLL) also illustrates the fact that there is a greater demand for London serviced offices than their is supply and that many areas could run out 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. However, areas with a shortage of London serviced offices 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. JJL have forecast that the space currently available in the area could be taken in up to eight months due to a surprising amount of demand. There is also a great lack of development due to 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 London serviced offices 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.”