Companies are increasingly opting to move into refurbished properties, due to a lack of new London office space developments in the Midtown. According to a recent report, the limited amount of good quality space is holding back growth. Statistics show that office take-up in Q1 of 2010, at 376,000 square feet, is 26 percent below the quarterly average of 500,000 square feet.
Take-up in Q1 of 2010 was also quantified as being 29 percent lower than the last quarter of 2009, despite other promising signs in the sector. Only one office development will start in the Midtown area in 2010, pushing some companies into making snap decisions on refurbished properties. For example, UK & European have struck two lease deals, of 7,500 square feet in total, on their 9 Kingsway property.
Following the end of the current quarter, there are no scheduled Midtown office completions until Q2 of 2011.