According to recent research, the amount of office space available in the capital has dropped dramatically.
The statistics show that in London overall, available space has fallen by a whopping 19 per cent in just one year alone. In the City, this has dropped by a dramatic 27 per cent.
This marks the lowest vacancy rate level since the autumn of 2007, as it currently stands at just 5.6 per cent.
Why is there a lack of space?
One of the main reasons that there is so little availability in terms of space is down to developers essentially pressing pause on developments in the capital, due to Brexit concerns. This has been the case since the run up to the referendum over 3 years ago, and it seems that this supply shortage will not become less of an issue anytime soon.
Lack of London office space increasing rents
The lack of availability when it comes to office space in the capital has impacted on rents, due to the fact that occupiers are competing amongst each other over a fewer amount of properties.
For example, in London’s most expensive area – the West End – the average prime rent price has risen by 7 per cent in the last year, equating to £107 per square foot. Meanwhile, in the City, prime rents have risen by 3.6 per cent, coming in at £72.50 per square foot.
Whilst the take up of available London office space in the second quarter of this year is 5 percent lower than in 2018, it has still increased by ten percent compared to the first quarter of 2019. This shows that despite the ongoing political uncertainty facing the property sector, the occupier market is still continuing to do well, regardless of Brexit worries.
How Pilcher Hershman can help
Despite less office space available and reported increases in rent, Pilcher Hershman is on hand to help you every step of the way. As experienced office agents, we specialise in helping our clients find the best office space to suit their requirements. With an eye for creative office space, we can match our ability to find you the ideal office with sound commercials, so you can get the most competitive rates possible and it is a sensible move for your company.