Many firms seek London office space. After all, it is often convenient for companies to have premises in the English capital and there is also a certain level of prestige associated with these working bases.
According to Knight Frank, demand for office space in the city will rise as a result of growing economic confidence.
The firm noted that there was a slowdown in activity during the first quarter of this year and suggested this was the result of the difficult economic conditions seen in the latter part of last year.
Proprietary partner and head of West End leasing at the company Tim Robinson remarked: “A small drop in take-up was inevitable given the difficult economic backdrop, but we are seeing continued strong demand emerging from the technology sector, with household names like Wonga, Money Supermarket and TomTom all active.
“While supply increased, it is still very low by historic standards with the vacancy rate at less than six per cent, compared to a long-run average of eight per cent. The constrained development pipeline will keep supply levels in check going forward – there is currently 1.6 million square feet under construction, much of which will not complete until 2013.”
Meanwhile, Knight Frank’s William Beardmore-Gray added that it is typical for demand for City offices to “time-lags events” in the world’s markets by around six months. He went on to say that economic news has improved in recent months and a number of insurance and law firms have taken offices in the City, with deals expected to go under offer in the coming months.
These days, many companies seeking office space in London are eager to get their hands on serviced offices because of the added convenience this brings. They do not have to furnish these spaces and they can leave much of the running of the offices to other parties, allowing them to concentrate more on their main tasks.