For the first time in over two years, the availability of office space in the capital has decreased. Although other sectors such as retail are still experiencing rising vacancy rates, London’s office market appears finally to be showing signs of growth.
In the same week that preliminary figures suggested that the UK officially exited the recession in the final quarter of 2009, with growth of just 0.1 percent, a survey found that London was leading the country in terms of the commercial property market. The industrial sector also showed evidence of stability.
Experts now expect to see rising rents, as decreasing supply causes a corresponding – though at this stage, gentle – squeeze on demand. This is likely to be strengthened by the fact that comparatively few companies have put new developments in motion over the course of the recession due to uncertainty and the need to consolidate rather than expand.