Business

London office space rentals shoot up

Cheaper rents from landlords and better buying conditions are said to be behind the first quarter surge in office leasing in the capital.

According to new research, the take up of office space in London rose by 40 per cent in the first three months of 2013. This means that the start of the year has seen more than 2m sq ft of new workspace become occupied.

It is a significant 75 per cent increase in the 1.5m sq ft taken up in Q1 of 2012.

However, property consultants Cushman & Wakefield who conducted the research, did indicate that the figures are on a par with the average five year levels. This is the second consecutive quarter averages have been maintained.

However, it has also been the strongest start to a year in 13 years.

A major contributor to the three month total has been mega-search engine Google. The Californian’s purchase of 800,000 sq ft of space at King’s Cross Central accounts for over a third of the space let in the quarter.

The new facility will eventually become Google’s UK headquarters.

The total take up in the quarter in the West End was 1.5m sq ft, the same as the capital’s total for last year. However, higher rents are still seeing many companies move their operations further outside, with many looking to business centres in and around London.

Searches for the centres are said to be increasing in numbers, and in the breadth of search areas too, with better value from managed facilities also being sought.

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