Businesses ready to invest in City office space – Jones Lang LaSalle

Jones Lang LaSalle says businesses in London are increasingly prepared to invest for future growth, as indicated by the latest take-up figures for City office space. The firm says the second quarter of this year was the strongest quarter since Q1 2010, with take-up of City offices jumping to 1.95m sq ft from 1.1m in the first quarter.

So far this year, occupiers have taken up 3.0m sq ft of office space in the City, which is the highest level of activity since 2007, Jones Lang LaSalle notes. A number of large deals boosted the Q2 total, which the firm’s director of office agency Dan Burn says “demonstrates the growing confidence in the occupier market”. He also notes that the top four deals during the quarter were pre-lets or pre-completion lettings, which he describes as “hugely encouraging”.

Despite the increase in activity during Q2 the amount of office space currently under offer grew by 23% to 1.6m sq ft. “Having delayed decisions on their requirements during 2011 and 2012, we are now seeing the release of pent-up demand for office space in the City,” he adds.

“The biggest issue moving forward will be the lack of “oven ready” and deliverable schemes, which will put pressure on those occupiers now looking to secure premises for occupation from 2015 through 2018.”