Businesses are leasing out more London offices than they did two years ago, even with significant staff reductions and employee commitment to hybrid work. As reported by Business Matters, Knight Frank claims that since 2021, the area of office space available for rent in the British capital has grown by over 100,000 square meters.
The number of businesses searching for space in London is at an all-time high, and 80% of senior executives want their new location to be as big as or bigger than their current one. A representative from Knight Frank claims that this is because most corporate tenants prefer to work in larger, greener offices now that the pandemic is over. For many, having a decent canteen, a gym, and showers in the office is also essential.
Businesses are vying for prestigious offices because there aren’t enough spaces that fit these strict specifications. Their rents are also skyrocketing; in the City of London, for instance, there have been 25 leases for more than £90 per square foot (0.09 square meters) in the last two years, compared to just 6 in the four years prior. Similar circumstances exist in the West End, where there have been 142 agreements with rents exceeding £100 per square foot in the past two years, compared to 112 in the four years prior. Agents anticipate that there is more to come.