Central London’s office availability is at its lowest level in 14 years, according to commercial property and real estate services advisor, CBRE.
There is currently around 10.8m sq. ft of London office space available, having dropped 3% in the first quarter of the year after the largest take up of office space in half a decade, which saw more than 3m sq. ft being occupied.
The combination of high occupation coupled with very little availability has resulted in a significant rise in rent costs to maintain the growing market, with The West End predicted to rise 15.6% by the end of this year.
Taking up 45% between them, the financial and business services sectors are currently leading new office leases in Central London.
CBRE, managing director of Central London office leasing, Emma Crawford, said, “Demand for office space in Central London has been strong, and when coupled with slimmed down supply, it’s only natural that we’ve seen rental growth across the board.”
In the wake of such growth, Birmingham are estimated to take advantage of the shortage by offering up to 1m sq. ft of office space at a fraction of the costs offered in the capital, in attempt to attracts struggling start-ups.
By: Kirsty MacGregor
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