Pearl & Coutts: Finding Office Space In London After Strongest Investment Year
Investment in London's commercial property market continues to grow despite nationwide recession.
Feb. 26, 2013 - PRLog -- LONDON -- Recent industry research shows that office space in London has lost none of its sheen despite the nationwide recession. Overseas buyers paid an estimated £9.6 billion for commercial property in the city of London during 2012. The total turnover was up by the same amount in 2011, representing a 40% increase. During 2012, the capital's office vacancy rate remained apparently unaffected by the nationwide recession.
For those looking for new premises in the city, the office take up rate remained steady at 7.2%. In the West End the vacancy rate was estimated at 5.6% in 2012, down from a long term average figure of 7.6%. In the City, there was a 25% increase in take up last year as particularly technology and communications companies scrambled for space. This was in turn fuelled by international excitement created by the 'Silicon roundabout'. As the technology, communications and media giants, SMEs and start-ups have generated the buzz, an increasing number of companies from Asia and Eastern Europe have been looking to establish a presence. Clerkenwell, Farringdon and Shoreditch have now all been established as key areas, with another wave of demand predicted during the coming months.
The ten year average figure for total investment in London commercial property stands at £10.8 billion. 2012 eclipsed this by some £3.2 billion, representing the strongest year to date since 2007. Last year’s total spend by overseas buyers meant they accounted for a record 70% of all transactions. This was the fifth year in a row with an increase in these acquisitions. Research this month shows that the West End of London is currently one of the highest performing locations for rent per square foot, earning London the crown as the highest priced business location worldwide. The areas around the Silicon roundabout are also continuing to attract attention and the recent opening of the Shard has brought an inevitable wave of demand for nearby premises. Within the industry, there are widely held predictions that the shortage of suitable space that has dogged the city for many years will not abate during the next five. For businesses looking for new premises in the city, media messages could paint a picture of ever spiralling rents and inevitable competition for even the poorer premises.
“Coming into 2013 means businesses are looking at the landscape following on from an extremely strong year. As always there are hotspots in very high demand. We still have offices and other types of premises in those areas, nearby and elsewhere all at genuinely competitive rents. There is no reason why firms should need to compromise. We will try to match them to premises that meet all their operational needs at sustainable pricing,” said a spokesman from commercial lettings specialists Pearl and Coutts.
Call 0207 843 3753 to discuss your business needs with Pearl and Coutts multi-lingual commercial property team. Their current selection of office space in London and associated premises such as industrial units, storage and parking can be viewed online at www.pearl-coutts.co.uk