INDUSTRY NEWS

Three-quarters of businesses maintain office space

A new survey suggests that around 75 percent of all businesses have maintained their needs for office space over the last half-year, though the financial sector has been hit, with London office space being one of the most affected areas.

Around an eighth of firms have expanded their rental space – leisure, retail and construction being the chief sectors to benefit. However, financial services companies have dragged the average down and are expected to do so again over the next two quarters as they continue to make efficiency savings.

The news was better than expected, as the contraction was not as severe as analysts first predicted. A fragile recovery is expected for the first part of 2010, and a similar pattern is expected for the immediate future, with many companies intending to take advantages of break options in their contracts.