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Home / News / More jobs create shortgage of commercial London office space

More jobs create shortgage of commercial London office space

Wed, 03 Nov 2010 | COMMERCIAL PROPERTY

As economic conditions continue to improve and companies create job openings, demand for prime office space in London will increase ever further.

There is already strong demand for offices within the West End and the City and, with more and more companies located in the Square Mile employing new staff, the commercial property sector could see much improvement.

A lack of new commercial properties coming onto the market has led to an imbalance in the supply/demand ratio and, with the economic recovery set to keep moving forward, the shortage of space is predicted to become serious.

New figures from financial services advisory firm, Astbury Marsden, have revealed that the number of new jobs created in the City has risen by 2.5 per cent in September month-on-month and companies are hunting for ways to entice new, experienced banking staff, such as offering improved bonus payouts.

Jonathan Nicholson, managing director at Astbury Marsden, said, "Banks are now prepared to buy out 100 per cent of a potential employee's shares or options they have locked up with their current employer."

The Jones Lang LaSalle Office Rental Index also showed recently that office developments located in prime London sites are charging ever increasing rents, with the average rental rising consistently quarter on quarter.


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