London office space fightback to begin soon?
October 6th, 2008 | by James Welch
OK, we know that the recent credit crunch stories are gloomy and that London office space is at a low, but is the fightback to begin soon?
With prime City office rents down from around £65 to £57 per sq ft, office space values down 30% and 2.4m sq ft of more office space available in the city than in previous times, there are perhaps two ways to look at the situation.
Its a doom scenario, or its a time for companies to move in now that prices should be more palatable for companies who could have not afforded London office space previously.
Some predict a further increase of vacancy rates in the City, whereas some predict that prices will drop enough for companies to dip their toe in the water. Some companies are waiting for the market to hit rock-bottom before they make their moves - is that time now?
With prices becoming realistic in the not-too-distant future, we think that there will be a fightback from the City and things will turn around in much quicker time than some of the doom merchants are suggesting.
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3 Responses to “London office space fightback to begin soon?”
By Peter Rose on Oct 6, 2008 | Reply
I think maybe its too early as yet to start the ‘fightback’, but I am sure that this scenario will happen and in 12 months or so we will look back on this episode in a different way.
By Ian Poulter on Oct 6, 2008 | Reply
I wonder how much more it will drop in price per square foot? Sub-£50?
By James Jones on Oct 6, 2008 | Reply
Im not sure we will ever get below £50. I cant see it dropping much more than it is at the present, the prices are getting just too juicy to ignore.