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London Office Market - Light at the End of the Tunnel

If your company is adopting a "wait and see" attitude towards whether or not to move office in London, you might be pleased to learn that there is a light ahead for the London office market.

According to research by a London Propery Consultant, it is expected that the London office market will benefit from some resulting pent-up demand next year.

James Young, Head of Cushman & Wakefield’s London Group who conducted the research, said, “2011 has been characterised by generally low levels of take-up across London. Next year, despite the troubling economic conditions, we expect things to pick up for landlords, investors and developers. There will be hot spots of office activity, and these will involve traditionally West End businesses moving office further afield – expect to see activity in areas such as Clerkenwell, Shoreditch and Southbank as our creative industries seek to find cheaper space in up-and-coming locations. Respondents in our study show a strong commitment to London, but the city cannot afford to rest on its laurels.”

The study shows that is now more important than ever for companies to align their real estate decisions against a wider business strategy, and make their office space work much harder for them - whether they choose to relocate or renew their existing office lease. Despite anticipation of increasing revenues and some increases in employment, only 17% anticipated an increase in floorspace over the next year. Working practices are being reviewed with 72% of respondents likely to introduce flexible working practices to use existing space in more efficient ways.

Lease flexibility was also considered the greatest risk as far as moving office is concerned, the survey found 21 months to be the average length of time taken by London companies to consider a lease event in advance. Companies are therefore advised to plan their office relocation early in order to achieve better incentives in their office lease negotiations.

Talk to a London Property Agent about your property decisions and office relocation aspirations. They can advise on the most appropriate office space for your business and negotiate a risk-free office lease on your behalf.

 

Planning an office move? Go the office relocation planning resource centre

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