LondonΓÇÖs Second-hand Office Market on the Up
Cost conscious occupiers are eating-up the supply of second-hand office space in Central London, with significant falls in vacancy levels reported by commercial property experts Colliers International.
Highlighted in a research report covering the Central London office market during the opening 6 months of 2011, Colliers suggest that the growing cost and competition for Grade A Office Space in the capital is leading to prospective occupiers considering alternative solutions when seeking out a new office.
Tracking in-line with 17% decrease in grade A availability reported in the last 12 months, the availability of second-hand office space across Central London has reportedly decreased by 19% since the start of 2011.
The growing levels of interest in this older office stock follows a period in which headline rents across Central LondonΓÇÖs grade A office supply have risen sharply, driven by take-up levels which reached 1.8m sq. ft. across all core locations during the opening 6 months of 2011. In the West End, occupancy levels are reported to have risen at the fastest rates seen since before the recession.
In a scenario which is expected to play-out across the office space markets of many key UK cities, the lack of new office developments coming to market is likely to heighten competition for the increasingly limited space, driving up headline rents yet further and forcing business to consider lower grade space or less central locations.
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