Firm reports surge in demand for City office space

Demand for office space in the City of London is on the increase, it has been claimed. According to research conducted by EA Shaw, there was a sharp rise in the uptake of new commercial premises around the area towards the end of last year. This reportedly helped drive demand for such property to its highest level since the start of the economic problems caused by the credit crunch.

The firm noted that there were a number of deals concerning London office space in areas including the City fringes, Soho, Covent Garden, Bloomsbury and Holborn and the South Bank.

In total, the new premises rented hit four million square feet last year. This was up from 3.5 million square feet in 2010.

Hi-tech firm were among those that sought office space in London and between them, they took up 1.3 million square feet in 2011, which was a rise on 640,000 square feet in 2010.

EA Shaw suggested that while many such organisations are still based in office space in Old Street, which it described as the “Silicon Roundabout”, they are displaying rising interest in the City. This is partly the result of the buoyancy of the sector, the company claimed.

Making predictions for the months ahead, head of commercial property at the organisation Charlie Killen said: “Demand may well fall back in the first half of this year as businesses take a cautious view of the economic situation.

“Assuming there is greater clarity over the eurozone and a successful summer Olympics and Jubilee, we expect the level of transactions to pick up towards the end of the year. The restricted development pipeline will mean rents for the best space will hopefully grow slowly, albeit at a slightly faster pace than last year.”

These days, many firms on the lookout for premises choose serviced offices because of the increased flexibility this affords.

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