Office Space: Expiries & Breaks to Hit in 2012
Businesses occupying over 6 million sq. ft. of office space in Central London will see their lease expire or enter a break clause in 2012, raising the possibility that they may choose to downsize or seek out a more cost-effective solution to their property needs.
Putting this volume of office space in context, this means that a question mark is currently hanging over the future of office space 5x the size of One Canada Square (Known to many as Canary Wharf Tower) ΓÇô the impact of which ΓÇ£cannot be overstatedΓÇ¥ according to commercial property agency Jones Lang LaSalle.
As reported by officebroker.com in December, the number of corporate clients turning to serviced office space grew notably throughout 2011. This activity, coupled with predictions of yet more movement from the corporate sector in the coming year could see the presence of such firms in the serviced office industry grow further.
In the rest of the UK, where the commercial property market has struggled to recover when compared to the Capital, a further 8 million sq. ft. of office space faces the same situation of break clauses and expiring leases.
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