London currently has a shortage of available office space for occupiers with vacancy rates at historically low levels which are averaging at 5.8%.
So what is the solution? Many businesses have come up with a simple resolution to this problem and it sits with taking space within a serviced office centre. The demand for serviced offices has therefore increased, with large take ups in Q4 2014 and Q1 2015, especially by global firms ‘dipping their toe’ into the London office market.
Advising businesses on market availability can prove complicated, as occupational costs are increasing significantly, since serviced offices have become more of a viable option across central London. On average the rate increase impact has been mainly in the West End areas, with well known providers opening the new ‘Super serviced office’ locations to keep up with the demand for non-corporate, edgy internal finishes. In the last six months the trend is for Tech / Media / PR firms to be located around the EC1, E1 areas.
We’ve found the previously stereotyped ‘Soho / Noho clients’ are now heading across to City fringe locations. From our clients point of view, the East London rates are the most currently affordable within the central London market for new serviced office properties. With trendy warehouse style space, with impeccable internal designs often the most desired and without a carpet tile in site, who can blame them?