Office vacancies in London decrease while demand for London office space remains high.
New figures have shown that office vacancies in London are at their lowest since the Lehman collapse. Property consultants Knight Frank released statistics that show just 7.4% of London office space is sitting vacant, this is around 16.7 million square feet.
This figure is almost 50% below the peak that London office vacancies saw in 2009. Demand for office space within the UK capital has been growing over the past 2 years with a great deal of interest from international companies supporting the economy.
London 2012 has also been a huge contributing factor to decreasing office vacancies in the city. Newly built offices for the event will also be free to lease and buy following the Olympics. It is hoped that creative and digital companies will move into the area.
Similarly the area around Old Street roundabout has been dubbed the British equivalent of San Francisco’s Silicon Valley. Space is occupied by a diverse variety of companies from film-maker Benny Crime (who operates from an abandoned subway train) to big name digital media companies such as Last.fm and Tweetdeck.
The recent development and construction of office buildings such as Bishopsgate Tower, the Shard and the Cheesegrater is also a promising sign of an improving economy in London. Demand for quality office space is high right now but it is expected to grow even more within the next few years. BNP Paribas Real Estate alone estimates that it will need an additional 1.6 million square feet of space in the future, this is the equivalent of four Shard buildings.
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