INDUSTRY NEWS

Office space demand at highest in 15 years

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New figures found from research conducted by CBRE show the highest demand for London office space since 2000, as the improving economy results in a more appealing market for real estate investment.

In May of this year, the amount of property under offer in Central London rose 25% higher than the previous month to 4.5m sq. ft, documenting the highest level of office space under offer since 2000 and 65% higher than the average of 2.7m sq. ft.

CBRE, executive director, Chris Vydra, said, “I have never seen such a variety of different industries going for space at the same time or using lease events as early as they possibly can to relocate. The market is tightening and occupiers are coming out earlier to have a look at opportunities.”

Eleven of the buildings under offer in May were for offices larger than 50,000 sq. ft – with the largest at 374,000 sq.ft, by Deutsche Bank.

To keep up with the drastic growth in need for real estate, construction has also seen a leap in activity. Deloitte Real Estate confirmed a 24% rise in construction activity within the last 6 months, with 9.5m sq. ft currently under development.

With the economy continuing to flourish, supply and demand look to continue in growth.

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.

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