According to a new study from commercial property advisors Savoy Stewart, itself based on UK government data, demand for office space in Central London has continued to grow at a steady rate for a number of years; however other parts of the UK, including areas on the outskirts of the capital, seem to struggle in comparison.

The report, based on an analysis of data from the Valuation Office Agency, incorporated data covering the period from 2000 to 2016 and found that the total floor-space of 21,092,000m2 in Central London accounted for nearly one quarter of the total office floor-space in England and Wales (89,037,000m2), and more than twice the total floor-space of the top 10 office hotspots outside London combined.

Savoy Stewart’s study further claimed that while office occupancy in inner London has been growing at a steady rate, the trend has been negative in the outer London boroughs. To put that into tangible figures, take up of office floor-space in inner London grew from 19,264,000m2 to 21,092,000m2 from 2006-07 to 2015-16, marking an increase of 8.53%. Outer London on the other hand saw a steady decrease in office occupancy from 2006-07 to 2015-16 with the total falling by as much as 441,000m2 (8.02%). From 2014-15 to 2015-16 alone these regions lost a total 94,000m2, or 1.82%, further outlining the issues they may face.

Within London, the City of London (14.49%) grew at the fastest rate, followed by Tower Hamlets at 11.47% and Camden at 9.39%. Westminster however remains the most popular office location in inner London.

Darren Best from Savoy Stewart commented: “The statistics may not show the whole picture but they reveal a lot about the commercial property market in England and Wales, and in particular the office sector. We have witnessed major changes in the last decade including the rise of office alternatives to inner London which has become too expensive for a growing number of businesses.

“However, results from the analysis of official statistics also reveal that while most office hotspots had their ups and downs over the past decade, office floor-space in inner London was growing at a steady pace. This suggests that despite the premium cost, inner London hasn’t lost its appeal to businesses looking for swanky modern offices. On the contrary, it is becoming an even more attractive office destination than ever before.”

Sam Bonson

Sam is an aspiring novelist with a passion for fantasy and crime thrillers. He is currently working as a content writer, journalist & editor as he continues to expand his horizons.
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