Quality office space in London’s West End will become increasingly difficult to find with occupiers rushing to secure the best properties now, according to global property adviser Cushman & Wakefield.
Quality office space in London’s West End will become increasingly difficult to find with occupiers rushing to secure the best properties now, according to global property adviser Cushman & Wakefield.
Active demand from all sectors, a rapidly dwindling amount of available space and a worrying dearth of offices being built are resulting in increased competition amongst corporates looking to fix deals.
Since January 2010 there has been a 50% increase in major lettings in the West End, with take-up to date - 1.91 million sq ft (177,000 m2) together with 700,000 sq ft currently under offer - more than that of the whole of last year. Cushman & Wakefield expects take-up in the West End to top 2.75-3 million sq ft by the end of 2010. This compares to 1.90 million sq ft in 2009 and marks a rebound to 2008 levels.
Guy Taylor, head of West End Office Agency at Cushman & Wakefield, said: 'The West End office market turned a corner during the second half of 2009 with take-up leaping upwards. As the recovery gains pace, we see rents climbing steeply and space growing increasingly scarce. There will be more refurbishment of buildings as banks refuse to lend money on large new office developments. As the market swings back in favour of landlords, corporates must move quickly to secure competitive deals and incentive packages.'
