London’s most prosperous borough, Westminster, has lost 5% of office space.
This loss equates to enough office space to house approximately 78,000 employees, and comes as a result of the government changes surrounding office to residential conversion.
The Westminster Property Association funded new research into office conversion developments and found that one in 20 sq. metres of office space in Westminster has been converted in the last four years.
Only 120,000 sq. metres of office space has been developed in the same time period according to the research.
Last year, the government relaxed planning regulations stating that converting office buildings into residential homes is more urgently needed and will continue to bring desolate buildings back into use.
However, a high percentage of applications involved with already-occupied offices are resulting in the eviction of fully established companies.
Boris Johnson stated that this could “threaten the capital’s future as a business destination”.
Turley executive director, Michael Lowndes, stated: “The fear is that places like Westminster simply become a dormitory and that’s not what people come to central London for.”
According to the figure laid out by WPA, the office space already lost in Westminster has been converted into 7631 homes meaning that approximately 15,200 people have been housed.
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.