London Office Space availability hits records high
July 22nd, 2008 | by Simon Rattray
The Royal Institution of Chartered Surveyors has reported a substantial drop in demand for commercial property. For agents and investors alike, this will make dismal reading as more and more surveyors report a fall in demand. Along with a general fall in demand for commercial property, RICS also found that the amount of available office space in central London his risen at the fastest rate since they began conducting the survey.
As to be expected the fall in demand has meant that prices are also on a downward trajectory, according to Bloomberg. It is clear that it has become harder for developers to finance acquisitions and new developments. With most economists predicting negligible levels of economic growth in 2009, it seems that it may well get worse before it gets better.
The serviced office sector, despite being able to benefit from a lack of commercial mortgages, is likely to also to feel the impact of a fall in the overall demand for office space. Clearly the strain will be most acutely felt in London, notably in the City itself.
The question surely is what can providers do to combat this fall in demand? By being flexible, offering incentives and running regular promotions should help entice potential tenants.
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