INDUSTRY NEWS

Increase in desk rental fees spell trouble for start ups

The need for serviced office space in London is growing in tandem with the start up companies that desire it. Searches for serviced offices grew more than a third last year compared to 2013, and are set to continue this year.

However, the average cost for London desk space is 129% higher than the UK average, leaving aspiring small enterprises struggling to house themselves alongside much bigger companies. The average monthly price for a desk in London is more than £500, with the UK average coming in at less than half of that at £224.

Forecasts suggest that with the current economy growth in London, businesses may eventually struggle to even find space, let alone afford it. This has left areas such as Victoria and Kings Cross competing with the likes of Soho, as businesses attempt to find more affordable and accessible office space in the centre of London. Typical areas are slowly being abandoned while search volumes for office spaces in areas such as Liverpool Street are doubling.

With 180% difference in price between Brixton and Knightsbridge, the highest and lowest average areas for rent respectively – there may soon be an upheaval in the occupation of office space in central London by small and medium sized enterprises.

By Kirsty MacGregor

News bought to you from DeVono Cresa, the award-winning commercial property advisers, specialising in Central London office, retail and leisure space.