Current issues surrounding London office leasing.
How a lack of available office space has affected businesses.
Continuing our look at the current state of London office space and the comments made by property specialists Pearl and Coutts this article will consider the effect that the lack of developments is having on office leasing prices and new business in London. With so many companies struggling for quality office space it has become far more plausible that leasing prices will rise further in the foreseeable future.
One key issue that needs to be addressed is how smaller businesses and start-ups will manage to survive in the city if office leasing costs rise. Currently it is hard enough to find office space as there is not currently enough in certain areas due to the high levels of demand. What’s more, small companies will constantly be outbid for office space by bigger companies that can afford higher leasing costs.
However, there is some optimism amongst professionals in the London property field with some believing that future projects can remedy the situation. Commenting on this a Pearl and Coutts spokesperson said: “There is competition for space, but we have a wide selection of available properties. Without a reliance on the next phase of the building cycle, there’s no shortage of accommodation for our clients, whatever their needs” said a spokesman from Pearl and Coutts.”
Currently London’s financial sector is dominating the office space even though there were earlier predictions that a downturn in job availabilities would heavily affect it. As a matter of fact, research figures from PricewaterhouseCoopers placed London ahead of New York for its ability to influence global market growth.