Today, commercial property consultants EC Harris LLP, revealed that London property developers are struggling to attract tenants to rent office space in new business centres.
It is reported that over 150 new-build projects are planned and as much as 53million square feet of office space will become available by 2016. However, tenants are opting to extend their leases in their current offices rather than take up new space.
It is thought that London’s weakened economy has prompted this change in behaviour as new office space will come at a higher price tag than existing office space and companies simply don’t have the capital to re-locate.
This report does not come as a surprise to Search Office Space who last year reported on a new office space era to hit London. Skyscraper plans in the Square Mile were scrapped to make way for the ‘refurbishment era’ which offers cheaper rental rates than new business centres and multi-billion pound skyscrapers.
It’s not just the City of London that may suffer, as London’s West End may be forced to change its 9million square foot of new office space projects into residential housing as it’s a safer alternative.
In many ways the ‘refurbishment era’ makes a lot of sense, as relocating can cause disruption to businesses, and in this economic climate, many companies consider a move to be high risk. However, Search Office Space can help your office space move become stress free and low risk, as our consultants do all the hard work so you can concentrate on making your business a success.
For more information about serviced office space in London, talk to Search Office Space today on 0800 524 4649 to discuss your requirements.