Strong demand for Central London headquarter offices despite Brexit fears
Amongst Brexit turmoil, many market commentators predicted the contraction of Central London’s office market. Despite initial trepidations that Brexit would be detrimental for interest in new office spaces within the nation’s capital, new reports have surfaced showing strong demand for business headquarters within Central London.
Creative, Media and Technological industries taking up significant office space
Totalling the highest levels for Central London in the last four years, 14.61 million square feet of office space was taken up in 2018. This sits around 14% higher than the long-term average. This shows that the ongoing political uncertainty surrounding Brexit negotiations has not ceased the influx of the booming office space market. Taking the lead in this rush for property is the creative industry, with Technology, Media and Telecommunications (TMT) firms totalling around 27% of total office space acquisition. TMT behemoths such as Facebook typified this trend, taking up significant space in the King’s Cross area.
Increased growth for flexible and convenient workspaces
The rise of flexibility within office spaces today has made it easier than ever for tenants to take up office space, with an emphasis on a “workspace as a service” ethos driving the way. Workplace innovations such as Smart Spaces platform work to improve the service to occupants, empowering tenants by connecting them to their working environments and communities.
Aside from this unexpected increase in demand for Central London office space, its availability has been notably limited, sitting at just 1.2 million square feet of speculative space for 2019. This is down 17% from the previous year. In effect, as demand has increased, the supply for office space has – somewhat unsurprisingly – fell.
Looking to secure your office space in the coming new year while you still can? Mellersh and Harding offer a range of excellent commercial property services around St James's, Mayfair and Victoria area. To view our extensive choice of office spaces available to let within the London area, contact us or call us at 020 7522 8500.