Google battles to win lease for high quality London office space
A shortage of new office developments in central London has reportedly led to a fierce competition between several international companies, including Google, Royal Dutch Shell and Macquarie, in a bid to sign up for London’s best quality office space.
Other firms including Debenhams, Aegis, and Bloomberg are also said to be searching for new head office locations in central London.
Since the financial crisis took hold, many plans to develop new properties have been delayed or cancelled, and the result is a shortage in quality office space which is putting the ball back in the court of the property owner.
For some time now, it has been a ‘tenants market’ with respect to negotiating rental agreement deals, and office providers have offered many attractive incentives in order to fill their buildings. But this trend seems to be shifting back into the hands of the provider.
According to The Telegraph, one London agent said: “There is a feeling among tenants that if they don’t sign soon they will miss out. There is a positive sentiment among landlords.”
This shortage is expected to boost the value of property in central London, which is also expected to roll out across the UK.