INDUSTRY NEWS

Dramatic increase in London office based businesses

Independent data has recently revealed an increase in the number of businesses turning to serviced office space in Central London. More and more businesses are now opting for flexible office space alternative in the heart of the Capital since the beginning of 2010 than in previous years.

London’s commercial property market has drawn the most investment for the second consecutive year as prospects of rising rental income is attracting international business from as far afield as Hong Kong, Qatar and Canada.

The serviced office industry in particular has grown its appeal in recent years and well and truly established itself within the Capital, with the prominence of firms such as Regus continuing to help raise its profile amongst corporates.

Cash-rich pension funds, sovereign wealth funds, insurers and wealthy individuals have bought shops and offices in central London as low interest rates and concern that the global economy will deteriorate made other investments riskier and less appealing.  New York-based RCA explained that some of the biggest deals of the year were announced in the final quarter.

“There’s a massive surplus of investment capital looking for a home, and the one thing in common is a desire for yield,” Dan Fasulo, RCA’s managing director, said in an interview. “A core London office property at a 5 or 6 percent yield looks fantastic against the alternatives.”

Commercial property news brought to you direct from DeVono Cresa, specialists in London commercial proeprty.