The capital has witnessed a considerable increase in the number of leases being signed to secure office space in May this year. CBRE (the world’s leading commercial property and real estate services adviser) announced a 96% increase in the amount of newly leased office space compared to April.
This is certainly pleasant reading for the future of London?s economic wellbeing, the increase in take-up levels show a level of optimism from new and expanding businesses, a confidence that should proliferate across all sectors in the capital. Currently CBRE are crediting the Midtown area, which increased by 231% in May compared to April.
The turnaround is incredible in contrast to the forecast at the end of 2011, when falling demand and rising availability continued to impact on overall rental expectations. Confidence is key to a sustained recovery, and the increasing interest is sure to help stimulate a growing optimism in the capital.
There has been a surge in demand for good quality commercial property in London thanks to the prosperity and success of TMT companies thriving to the East of the city. Areas in Shoreditch and Old Street such as ?Silicon Roundabout? have emphasised the ambition and ability to overcome the economic downturn; and their influence is slowly bleeding back into the heart of the city, encouraging the up-take in office space closer to Central in the Midtown area.
?We are pleased to hear about the recent increase in office space takeup, particularly following recent doubts about London?s continuing status as the centre for commercial property in Europe. The redevelopment of East London following the Olympics has also paved the way for a new surge of technology companies forming our own ?Silicon Valley?. London is, and will always be a popular choice for businesses because of the prestige and opportunity that comes with working within the city.? said a spokesman from Pearl & Coutts.
The Telecommunications, Media and Technology sector has been leading the path across London, in the last month the City saw the greatest volume of office space leased, it was the TMT sector that drove the success, with 28% of the transactions coming from TMT companies. The City had experienced a downturn for the early months of 2012, but perhaps now this is the signal for a revival, and a return to its former greatness.
To view Pearl and Coutts selection of office space in London and other commercial property including shops, parking, industrial units and storage space, call the team on 020 7843 3753 or visit http://www.pearl-coutts.co.uk /
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