Taking Advantage of the Current Financial Crisis when looking for Commercial Office Space in London
by: Shivani Gurtu-Louth | Total views: 3 | Word Count: 352 | View PDF | Print View
In reaction to this situation, corporations are now leaning more towards short-term leases to see them through the credit crunch.
Unfortunately for landlords, London is an ever-growing entity and there is over 12 million square feet of office space in London due for completion over the next few years. With supply outstripping demand, landlords are facing a decision where they can either cut their rental prices or face leaving their office space in London unused. While this looks a poor forecast for the property owners, it is a good one for soon-to-be tenants. Landlords who have cut their rents have found office space in London is being snapped up by tenants.
Commercial properties have seen a price fall over recent months and the impact of the credit crunch has hastened the inevitable. Current wisdom suggests that this is the time when corporate occupiers and potential renters will have the real power of negotiation when it comes to rental values. Tenants are already seeing the fringe benefits of the economic crisis, as landlords reduce their rents and incentives, such as rent-free periods increasing.
Those looking for commercial premises in the City of London are beginning to be spoilt for choice, with the amount of spaces being rented out falling by almost 35%** Even the West End, supposedly the most resilient region of the capital, is now experiencing rental reduction. The number of offices being rented out in the first six months of the year fell by 9.5% and a further tumble of around 10% is predicted for the final months of 2008**.
Given the state of the office space market in London, potential tenants would be well advised to seek the services of a London-based commercial property agent. These organisations have specialist and insider knowledge of potential property hot-spots. The changes in the office space industry are another facet of the work they do and, using their expertise and knowledge of market rents in various parts of London, would-be tenants can take advantage of the current financial crisis and bag themselves a bargain
**Costar Group report.
About the Author
Shivani Gurtu-Louth - Operations Manager of Devono Property Limited. Devono are the only
commercial property agents in London to exclusively represent tenants looking for office space and commercial property in London to rent. Our aim is to secure the best commercial
property at the best price.
For interviews, quotes, images or comments contact:
Shivani Gurtu-Louth
Devono Operations Manager
Tel(DDI): +44 (0)20 7096 9911
E-mail: sg@devono.com
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