Central London Office Market Forecast
What does 2012 hold for the Central London Office Market? Is 2012 the right time to relocate your business in Central London?
The cost of office rents currently being achieved in Central London at the moment, will no doubt, be a key determining factor in deciding whether an office move in Central London will be a viable option for your business purse strings in 2012.
The UK economy has had a very bumpy ride over the last couple of years, and we are by no means out of the woods, particularly in light of the fact that the governor of the Bank of England has publicly stated that: “This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever.”
If your business is looking to move office in Mayfair/St James's office rents have driven up to £95 per sq. ft. - and in some instances £105 per sq. ft. In fact the escalation of office rents has pushed some occupiers to relocate to less pricey areas of central London - and even further afield.
Office Space Requirements for Central London remain active; LinkedIn, Gamesys and O2 are all seeking new office space and Google is actively searching for between 400,000 and 700,000 sq ft. in Central London. Cushman & Wakefield reports that there is currently eight million sq ft of active demand in Central London up from seven million sq ft a year ago, and 4.3 million sq ft of that is specifically seeking office space in the West End.
Yet despite the increased levels of demand, from both lease breaks and expiries and expansion of business sectors, there is still a lack of development across Central London which restricts choice for occupiers looking to move office in 2012.
Make sure you make early contact with a Commercial Property Agent in Central London to help you plan your London office relocation. If nothing else, a conversation with them will enable you to decide whether 2012 is the time to to stay put or move to other offices.
Plan your London office relocation with the Office Relocation Checklist.
