Recent research has shown that many SME’s who wish to rent serviced office space in the City of London may soon be sorely disappointed. 2012 has so far revealed a lack of commercial property within London, demonstrating that the demand for office space far outweighs the actual availability.
The research, conducted by Jones Lang LaSalle, predicts that in a little as eight months’ time, the West End could see a significant lack of office space for rent. This is caused by an unforeseen demand for space as well as a fear of property development which stems as a result of the current economic climate.
Jones Lang LaSalle is of the opinion that property rents will have a national increase of 1.7% in 2012, except for those places where availability is now scarce; the City of London will increase by 3% and the West End by 3.5%.
Moreover, further research has discovered that grade C rated office space is far more present throughout the UK than grades A and B. Approximately 70% of UK office space is grade C while the remaining 30% comprises grades A and B.
Head of UK research at DTZ, Martin Davis, says, “contrary to our expectations grade C has a lower availability rate than grade A and B stock. Nevertheless, we expect this position to deteriorate in the face of continued low economic growth and competition for occupiers from better quality space.”
For information about how you can rent serviced office space in London, visit us at Search Office Space or call us now on 0800 740 8080.