In a recession, there’s generally a declining demand for office space. London’s financial and commercial hub, the City of London, hasn’t seen a single new development in 2010, breaking a trend of expansion which has continued over a decade. However, space is being bought for prospective development – and it’s a good time to invest.
Next year, up to 1.2 million square feet of office space is coming up to its lease expiry date, and will be available on the property market. Likely candidates to snap up that space include the Bank of China, and various other international financial organisations.
It’s the City’s international outlook and globally dominant position which keeps its office space in demand: companies all over the world, affected in different degrees by the financial downturn, keep a London presence among their top priorities. In addition, the ‘iconic nature’ of some of the area’s buildings, as British Land’s Tim Roberts says, keeps them desirable in all financial climates.